Helping you to access business loans
If you need funds to help your business grow or expand, business loans could offer the solution you need even if you do not have a property for the funds to be secured against. You can borrow unsecured business loans from £5,000 up to £500,000. Our lenders will only take a personal guarantee and there is no debenture required.
What are the benefits of Business Loans
There are a number of different paths available to you if your business needs some money. You could look to reinvest the profits of the business. Or you could try to find an investor or business partner who will inject some cash into the enterprise.
Unlike investors, a bank is never going to interfere with how your business is run. If you find an investor, you will have to work alongside them. And unless they’re a silent partner, they will expect to have a say in how their money is spent by the business. On the other hand, banks don’t care what you do with the money as long as you’re going to be able to pay it back with added interest. What happens in between now and then is entirely up to you. So, if you want to retain full control over your business and how it grows and expands, a business loan is usually the best option.
It’s easy to get in contact with your bank and talk to them about the possibility of taking out a business loan. This convenience and ease of access is something that can be really good for businesses. Most business owners don’t have time to waste. And waiting for profits to grow in order to reinvest them can take a long time. The same applies to looking for investors. It’s a long process, and it can drag out for a long time. Of course, loan applications can take a long time to be analysed and accepted, but they are easier to deal with than the majority of the alternative options.
The interest rates attached to most business loans are very good. Banks are competing for customers, so they are obligated to offer a deal which is at least in line with what their competitors are offering. Of course, the interest rates are still going to allow enough room for the banks to see a healthy return on their profits. But the rate you get is often better than most personal loan options. On top of that, the interest you pay is often tax deductible. You will have to check with your local authority to see whether or not this is the case for your business, though.
Most business owners take out a business loan because they want to expand their business or push it in a new direction. This means that they want to make it more profitable. If you get this money from an investor, they will expect a return on any money you make. The performance of the business will be directly linked to how much they get in return. That’s not the case when you take out a loan, though. The returns are fixed, meaning that you will pay the same amount of money back to the bank no matter how big or small your profits become as a result of your investment
Collabot finance has partnered with Alternative Business Funding (ABF) powered by Funder Finder to provides a free and easy way for SMEs to research and find finance for their business.
If you are looking to set up a new business, this solution may not be right for you, but there may be other ways we can help.
You may also want to explore the Government-backed Start-up loan with free business support. Through this scheme, you could borrow up to £25000 to kick start your new business for 1-5 years and at a fixed interest rate of 6%.