Why You Might Benefit From a Business Loan
Since 2017, the value of business loans has increased by an average of 3% every year, reaching a value of £496 billion in 2022 and expected to rise to £513 billion in 2023. However, businesses in the UK face multiple difficulties, including economic and inflationary pressures, the after effects of COVID-19 and the impact of Brexit.
What is a Business Loan?
Business loans are a type of borrowing designed for commercial organisations rather than individuals that you usually pay back on a monthly basis. With a business loan you could borrow between £1,000 and £15 million. Pay the loan back over one month to 25 years. If a business wants to expand, it will need to invest. A business loan is one way of financing that investment. Repayment terms vary and depend on the amount borrowed.
What Can Business Loans Help With?
There are several reasons why a business may seek both secured and unsecured loans. These include:
- Business expansion – Purchasing new equipment, purchasing stock, expanding your team to respond to market demand, increase in sales and your bottom line.
- Premises purchase – this could be because your business is expanding, and to meet that demand, you need bigger premises or a high street presence. It could also be to store newly acquired additional inventory.
- Funding solutions even when adverse credit / CCJs exist.
- Asset finance for vehicles, computers / IT equipment and all types of machinery.
- You’re looking for competitive interest rates and flexible loan terms.
For assistance with applying for a business loan please call us today to see how we can help or submit an enquiry and we will contact you. Our advice is given freely, in confidence and without obligation.