Looking For The Best Small Business Loans?
If you need a loan for your business, what are the best options, how much will it cost you and which companies are providing fast business loans across the UK?
We will explore the options available for your small business.
Tradition Small Business Loans
The High Street Banks have always been the mainstay for providing small business loans, however, many people struggle to tick all of the boxes required to obtain the loan for their business.
If you can tick the boxes, for a reasonable interest rate, you usually receive the money fairly promptly and if you have a good existing relationship with your bank, it is one of the easiest ways to get funding your your business.
There are now an increasing number of challenger banks, from Starling to Monzo and dozens of others seemingly appearing every month.
These banks have looked at the problems of traditional banks (slow to provide loans, poor customer service) and have largely done away with these problems by creating an online business banking model.
During the Pandemic they were often the fastest to provide Bounce Back Loans.
They can be a good option for small business owners.
Funding From Other Small Businesses
Funding Circle is probably the best known funder, taking investments from some small business owners and providing loans to others, taking their fee from the repayments.
If you are struggling to obtain traditional or challenger bank business loans, this might be a good option for you.
Pension Led Funding
One of the lesser known methods of funding a business is to use pension led funding.
The clue to how this type of business loan / funding works is in the title – Pension.
If you have a private pension, your pension can actually buy your business brand, putting money into your business, with you repaying your pension pot over time.
Obviously, because you are ultimately borrowing from your own pension pot, as with any borrowing, you must be confident that you can repay the loan over time.