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How do you get a Small Business Loan?

Published on 18th December 2018 - Last update on 29th December 2018

Achieving your vision and securing a long-lasting future is the desire of every UK business owner. However, the key to success lies in making sure that you have the means to aid your business’ development. As such, getting a Small Business Loan is a major decision that every small business owner must face at some point, but is yet another hurdle to overcome. Nevertheless, it’s a responsibility that you can’t afford to shy away from. So if you’re looking for a way to acquire additional capital, here’s how to get Small Business Loan.

Why are you looking for Small Business Finance?

Small Business Loans can be used for a wide range of purposes including growth, working capital expenses or even replenishing inventory supplies. But, in order to take the first steps towards sourcing a suitable finance agreement, you need to know exactly how you intend to achieve it. Besides, it’s a topic that lenders will usually ask about when asking you to outline the details of your plans.

Got ambitious plans for your small business? Isn’t it the right time to give your business the support it deserves? Apply for a Small Business Loan and learn more about how your business could benefit.

Have you reviewed your financial status?

The next step to take is a review of your current financial status by generating a commercial credit report using the services of a credit agency such as Equifax, Experian or TransUnion. Despite the fact that many Small Business Loans don’t rely on your credit score to decide whether you’re eligible, lenders will still request permission to review your commercial credit profile. This is because it enables them to understand your financial position and the amount of risk which is involved in lending to your business. It may also directly affect the rate of interest you will be charged.

Therefore, when considering your application you need to be aware that lenders will incorporate their checks such things as whether you’ve got past and/or outstanding CCJs, Accelerated Payment Notices, arrears, unpaid debt (e.g. credit card debt) and your history of repaying debt on time. So if there are any issues that you’re aware of, choosing to resolve them beforehand could save your business money in the long run.

What types of Small Business Lending are you eligible for?

Small Business Loans are available in a variety of forms, ranging from Secured Business Loans, Peer-to-Peer (P2P) Lending, Overdraft Replacement, Invoice Factoring, Merchant Cash Advance to Asset Refinance. However, each of these products works in a different way to support your goals, making it all the more challenging to source a suitable finance agreement. However, that’s where discussing your plans with qualified business finance professional might be able to help.

Where are you going to get a Small Business Loan from?

When considering finance options, many business owners tend to automatically assume that the most appropriate avenue to take is towards traditional financial institutions. Although it’s true that institutions such as high street banks and credit unions play an invaluable role in supporting British Business, possessing a limited trading history and an unproven business model may cause them to be reluctant to lend. However, there is another path that small business owners can take - the Alternative Finance Industry. The Alternative Finance Industry is enabling business owners to gain access to more finance products than ever before, from an ever-expanding array of lenders outside the realm of traditional lending. But with so many choices available, how can you be certain that you’re acquiring the most suitable finance solution for your business, and at a competitive rate?

Need helping to get a Small Business Loan?

Still wondering how to get a Small Business Loan? Navigating the UK lending landscape can be a difficult process to get your head around, especially when you’re unsure of how a particular finance product even works. However, if you want to support growth, innovation and day-to-day operations, raising enough capital to achieve your goals is crucial. However, you don’t need to go forward alone.

At Rangewell, we’re an Access to Finance specialist working with over 350 lenders to offer you a comprehensive overview of more than 23,000 business funding products. Our services are free to use for business owners and their advisors and we’ll even guide you through the application process. So if you’re looking for a way to support your small business as you reach for a brighter tomorrow, apply for a Small Business Loan today or find out more with Rangewell.


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David Harrison

David Harrison

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