There are many benefits in choosing a business loan, some of which are listed below. What’s the fastest way of raising money for your business idea? A business loan, but what kind of loan should you get and who should you get your loan from. You could ask family and friends for a loan but they might not be as convinced about your winning idea as you are.
Where you go for finance depends on how much you need to raise and how you set up your business. Sole traders and partners are liable for all the debts in a business venture, whereas with limited companies, the directors are liable only for the amount of debt they personally hold in the company.
It is designed for a wide range of UK small, medium and start-up business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Finance is the lifeblood of a business. Without it you cannot grow. They are one possible source for business cash. You should be sure that the specific need for the money is applicable and that the loan is suitably structured.
Advantages over other forms of finance:
It allows you to preserve your cash and working capital.
Retention of Ownership:
You retain the current ownership of your company instead of raising funds by selling an interest in your company to an investor.
Cash Flow Management:
They can provide you access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.
Loan schedules are fixed at outset, which means cash management is more predictable.
Interest payments on your loan are tax deductible.
They are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders.
They can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.
They are available for Self-Declaration with CCJ’s & Mortgage Arrears
They can be secured by all types of business property, commercial and residential properties.
They are normally offered on Freehold and long Leasehold.
A business loan can be used for:
Acquisition, expansion or renovation of premises
Taking an interest in a professional partnership or business
Injection of capital into a business