Small Business Loans: Funding your potential
Reducing the cost and complication of borrowing makes it easier for your small business to move forwardSpeak to one of our experts020 4525 5312
Scaled for your business
- 1 to 60 months
- No Minimum loan
- Monthly rates starting from 0.35%
- Non-status and full status
- Simple monthly repayments
- Adverse Credit – no problem
- Minimal paperwork
- Funding can be available in 5 – 7 business days
- Funds for any business purpose
- Buy stock
- Pay staff
- support cashflow
Whether you need to invest in growth, provide working capital or deal with a cashflow shortfall, a Business Loan can help you release the potential of your small business.
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Traditionally, Business Loans were provided by banks, but since the credit crisis, a variety of new lenders have joined the market. They can often provide easier applications and faster decision making.
There are also two main types of loans.
Getting the right type for your business, and getting it from the right supplier, is essential to keep costs under control.
Reducing the cost
Lenders make decisions based on the risk that they might not get their money back. The higher the risk, the higher the rate they charge, and if the risk is too high they won’t lend at all.
A good credit history suggests that you will make repayments and reduces the risk.
Another way to reduce risk is to offer security.
What is security?
If you want to borrow a large sum of money, from £50,000 or more, you will probably need a Secured Loan.
They are ‘secured’ because the lender will require something as security in case you cannot pay the loan back. They’ll have the legal authority to take the asset and sell it if you can’t make the agreed repayments.
Low cost secured business loans are less risky for lenders, which is why they can have lower rates of interest than Unsecured Loans.
Buildings, machines and tools are often used, but it may also be possible to put your own home up as security.
Repayment terms can be more flexible with Secured loans, making it easier for you to arrange repayments around your business needs.
The advantages of Secured Loans
Having security reduces the risk to the lender. This can allow them to offer a better deal than they might with Unsecured lending.
You can have longer to repay, and enjoy a lower interest rate, meaning monthly repayments can be lower and easier to fit in with your cash flow.
Lenders may prefer Secured Loans for borrowers with an imperfect credit history.
Unsecured Loans may be suitable for smaller sums. The lender will make the decision whether or not to lend based on a number of factors, including the credit rating of your business.
Nothing is required as collateral or security. This means if something goes wrong, and you’re unable to keep up repayments on your loan, the lender is not able to seize any of your assets. However, the lender will expect a Personal Guarantee from you and your partners and co-directors, which will mean that you would be required to make the repayments if your business could not.
Unsecured Loan repayments can usually be arranged over 1 to 60 months, depending on the sums involved. Interest rates may vary according to the length of your loan and, with some lenders, you may be able to repay early, reducing the amount you pay overall.
Unsecured loans mean more risk for lenders. Because of this they usually include higher interest rates than secured business loans, which means your business will pay more over the life of the loan than it might have done for a Secured loan.
Getting unbiased expert advice can help you ensure that an Unsecured Loan really is best for your needs.
Why you need Rangewell to arrange the funds your small business needs
To get the loan that's right for your business you may need expert support.
At Rangewell we work across the entire lending market, and our service is unbiased as well as free. That means we will first help you decide whether you need a Secured or Unsecured Loan, then work with you to find the most appropriate lender and the most competitive rate.
We can also help you decide on the most suitable form of security to offer.
Why you need Rangewell to arrange a loan
Finding the right lender is essential to minimise the costs of borrowing.
So if you want to arrange a loan, or simply want to look at what the most appropriate kind of loan might be and what it would cost, call us. Remember, if you are unsure about what kind of funding you need, or the best way to apply, our experts are ready to help, from new business loans to quick business loans, and everything in between.
REAL EXAMPLES OF WHAT WE CAN DO
Find a secured loan of £15,000 for a company that had only been in business for three months
Source an unsecured loan of £3500 loan to repair a lift for a local garage
Set up a secured loan for a business that was already in a Creditors Voluntary Agreement
Find a small business a loan at a rate 50% lower than its owner could source himself
Find an unsecured loan to help for a small dress shop buy in a new season’s stock
Discover our range of finances
Every type of finance for every type of business
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.
Helping you build your profits
The money you need, fastArranging a loan can be done in hours. Some lenders can get money into your business account on the same business day that you apply.
Easy applicationsMany lenders can accept online applications, and while some may want to see accounts and projections some may require no paperwork at all.
Borrow for any purposeYou can borrow to invest in your business growth, or to deal with a short-term cashflow shortfall. At Rangewell we can help you find the right type of funding for your need.
FlexibleYour repayments can be fixed, so you can budget ahead - but many lenders accept early repayment, which can cut interest costs.
Scaled for your needsYou can apply for a small sum with an unsecured loan, or a large strategic loan secured on your assets.
Specialist lendersSome lenders specialise in particular business sectors. At Rangewell, we can help you find the most appropriate lenders for your business.
Download Rangewell’s free and detailed guide to Small Business Loans
What loans are available to small businesses?
What interest rate could you be looking at?
What loan amount could you gain access to?
What is a typical arrangement fee?
What to look at when applying for business finance
Find out how to support your cash flow in the best way
Can limited companies apply for business finance?
What are typical monthly repayments?
What is the representative APR (annual percentage rate) on different types of business loan?
Will I be subject to any arrangement fees or early repayment fees?
Can I get a business loan to start or grow my business?
How do business loans differ from personal loans?
Can you take out a short-term loan of up to 12 months?
How to apply for a small business loan
What are the fixed monthly repayments?
What are the terms and conditions normally associated with business loans?
Can I get an acceptance within 24 hours?
Does the British Business Bank recommend business finance?
What does it mean to be Authorised and Regulated by the Financial Conduct Authority?
Do I need to be a limited company registered in England when applying for a small business loan?
Do UK businesses require a credit check to be eligible?
Does Small Business Finance include Start-up Loans?
Will I need to provide a Personal Guarantee?