It is important to have a good flow of cash to let your business work smoothly or flourish slowly and steadily. For that you need to enjoy profits all the time but then it isn’t necessary to have prosperous time in your life and you might also face lack of funds especially at the time of need. But now with the help of business loans you can end this trouble and expenses related to your business.

Business loans are basically used for different purpose related to your businesses. The various prospects can be setting up a new business, expanding the existing business, buying new machinery, renovating business premises, etc. The amount of the loans varies from £50000 to £1000, 000 as per the requirements.

The repayment term falls in between 3 years to 25 years.

Business loans are of two types secured and unsecured. Secured type requires collateral against the loan amount which can be a home, real estate, etc. The loan amount depends upon the value of the collateral also. The interest charged on this type is low because of the presence of security in it.

The unsecured type of business loans doesn’t require any collateral against the loan but will charge a marginally higher rate of interest. For this, lender would see business plan for a new business and otherwise, financial statements or cash flow for last 3 years.

Credit record, collateral value (secured), business plan and loan purpose serves the factors that help the lender to decide how much amount should be provided to the applicant.

It doesn’t mean that a poor credit business is not available in the market. Bad credit history like arrears, C.C.J’s, defaults also does not pose any problem in applying for this loan. Only the interest rate charged will be high.

For small business loans one should go for online application. It gives you freedom to compare the free quotes offered by various lenders online and choose the best plan for yourself. Online application also saves your time, energy, and money as it doesn’t charge any processing fees and overhead costs are also avoidable.

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