Business Loans
Flexible financing solutions to help your business grow and thrive
Types of Business Loans
Secured Loans
This type of loan requires you to provide an asset, such as property, equipment, or company shares, as collateral. This lowers the risk for the lender, which can result in more competitive interest rates and larger borrowing amounts. However, you risk losing the asset if you default on the loan.
Unsecured Loans
These loans do not require collateral. They are generally available for smaller sums and come with higher interest rates to compensate the lender for the increased risk. For limited companies, lenders may require a personal guarantee, making you personally liable if the business cannot repay the loan.
Start-up Loans
Designed for new businesses that have been trading for less than 36 months, these can be unsecured and are often government-backed, such as the UK's Start Up Loans scheme. The amount is typically capped at £25,000.
When to Use a Business Loan
A business loan can be used for a wide variety of purposes:
- Covering day-to-day running costs and boosting cash flow
- Purchasing new equipment, vehicles, or inventory
- Funding expansion into new markets or acquiring another business
- Renovating or building new business premises
- Consolidating existing debt into a single, more manageable payment