Same Day Business Loans from UK Direct Lenders
£50 – £5000
Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
A recent study pointed out that more than 75% of small businesses begin with no more than £2,000 in start-up money. It’s quite rare for people to be fortunate enough to start a business with limitless resources at their disposal but there is no escaping the reality that having more than enough capital at the onset of your venture can spell the difference between success and failure. Fortunately, if you are looking to secure additional funds for your business, to help you kick-start your business or transition it to the next stage of growth, there are plenty of loans that you can take out in the UK today. Loans are available to the needs of the individual business which means landing a good deal can be easy as long as you know the available options and where to find them.
Am I eligible for a UK business loan?
Your chances of getting approved for a business loan in the UK will be based primarily on two factors: your financial situation and your business. And just like any other type of loan, the bank or lender providing the business loan will check your credit history and current financial status. The lender may also choose to examine your business plan or accounts, depending on whether you’re a start-up or already a maintaining a viable business. With that, ensure that your finances are all set in place and that your well prepared before you make an application.
Types of loans
Usually, there are three main types of business loan that you can access in the UK today. Depending on your needs and present financial circumstances, you can opt for loans with a guarantor, loans with no guarantor, or loans for bad credit. Below, we will tackle each loan option, so you will know which one suits you and your business’s needs best.
Loans with a guarantor
Loans with a guarantor are one of the most popular financial products that people with businesses take out in the UK today. With a healthy and booming loan market, you can borrow as much as £15,000, even if you are a first time customer. If you are someone who is looking to secure funding to help jumpstart your business, a business loan with a guarantor can be of great help. The presence of the guarantor also ensures a better chance of getting an approved for a loan deal with favourable rates and flexible payment terms. Here’s how loans with a guarantor can help you in your business:
- Start-up Finances – Loans with a guarantor are available by both new and existing companies. It means that if you are an aspiring entrepreneur, you can have the funding that you need to start a business by taking out a business loan with a guarantor. It can be especially beneficial if you currently don’t have the money to finance the different costs yourself and will need a crucial boost to take your businesses off the ground.
- Revenue and expenses – Numerous businesses operate under a cycle, and there is mostly a disparity between the money that is coming in and the money that is going out. Loans with a guarantor will allow you deal with this temporary business situation by guaranteeing that you will pay your bills.
- Costs of operation – Loans with a guarantor can cover an assortment of operational expenses especially in the short-run. For instance, the rental of temporary office space or the purchase of a new piece of equipment to get your business in the operation covered by the loan.
- Unforeseen expenses – Whether you like it or not, unexpected expenses can suddenly pop out without notice, and if you currently don’t have the funds to deal with them, it can cripple your business in the short-run and sometimes even permanently. Taking out loans with a guarantor can help you deal with these kinds of unexpected costs with ease.
- Cash Flow – Since loans with a guarantor are available at a specific timeframe without incurring any financial penalty, they are suitable for alleviating temporary cash flow situations. If you don’t have the money at the moment, but you can count on money coming in within a specified period like the next coming month, a small business loan with a guarantor can be a great way to fill the need.
Loans with no guarantor
As a businessman, sourcing out a guarantor can be tricky. After all, the majority of your time and energy is probably tied up in your business and personal life and finding a guarantor who will co-sign a business loan deal with you might prove difficult given the situation. And if you’re not comfortable in dragging someone in your loan arrangements, there are also loans with no guarantor that you can consider.
- Unsecured Loans with no guarantor. Unsecured loans with no guarantor are typically offered by banks, traditional lenders, peer-to-peer lenders, and online lenders as well. The total amount that you can borrow as well as its interest rates will depend on the creditworthiness of you and your business. For this reason, your property or company is not going to be in your loan deal, and you will not face the risk of losing them in the event of a default. But since the loans do not rely on an asset or your business, the amount you can borrow will usually be limited to around £25,000 – more significant investments typically require some security or collateral.
- Secured loans. Secured loans with no guarantor can be tied in several different assets such as your home, vehicle or even business. The amount that you can take out will depend on the value of the asset that you put up as collateral and the purpose of your loan as well. With such security in place, the risk involved in your application diminishes lowering the interest rates as a result.
- Peer-to-peer loans. Taking out credit for your business through peer-to-peer lending is another alternative that you can consider to finance your business. There are websites in the UK that could connect lenders with companies, allowing the business owner to take out massive amounts of loans without having to go through banks. The unique advantage of this kind of business loan with no guarantor is that you can borrow from several different investors for lower interest rates. To be approved for a loan, however, you will need to have a good credit history and provide a sound business plan and financial documents as well.
- Government loans. When you’re still starting with your business, it might be worth your time to consider government loans and see if you are eligible for a start-up investment. Because they are designed to help businesses and entrepreneurs, loans provided by governments typically come with low-interest rates and lenient lending criteria. The amount you can take out, however, may not be that huge compared to loans offered by private lenders. But still, it would be a great alternative to look into especially if your business is still in its infancy stage.
Business Loans for Bad Credit
Loans for bad credit are options that you can consider if you find yourself struggling to secure the funding that you need because of your poor credit score. It’s important to note, however, that many of the loans for bad credit that you can find in the UK market today have higher interest rates, due to the risk involved in bad credit borrowers.
Eligibility for bad credit business loans
When you have bad credit, your options are pretty limited, and loans for bad credit may be the only ones that you can access. With that, these are still acceptable financial products that are favourable than some of the options available for people who are struggling with their business’s finances. Here are some of the things that you might want to consider when you plan to take out loans for bad credit:
- Since bad credit loans tend to have higher rates compared to other forms of loans, comparing different offers from lenders is even more crucial so you can enjoy the cheapest borrowing available.
- If you successfully pay off your bad credit business loan under the agreed terms and conditions, it would serve as a great way to build or repair a poor credit score.
- Bad credit loans allow you to access the funds that you need to finance various vital expenses in your business if you fail to secure funding elsewhere.
Taking out loans for bad credit will make sense if they are for the right purpose. If you use them for unnecessary expenses, then you are only hurting yourself financially because the costs of taking them out are quite high. If you use them for the advancement and overall betterment of your business, however, then they can be a sound financial decision that you won’t regret.
Loans from a Direct Lender
When you take out loans from a direct lender, this means that you are taking out a credit that is specific to your business needs without the need to work with any other lender, broker, or middleman. With the right direct lender, you will be able to know the company that understands how vital obtaining the right financing can be to your business’s success and could help you thrive in your market or industry. And because direct lenders specialise in providing loans to clients, they can cater your request quicker with more advantageous terms compared to traditional lenders like banks.
Loans that are made easier
Taking out a loan has always been difficult especially when you are a business owner who is looking to secure funding from a traditional lender. Meeting the stringent eligibility requirements, hard payment terms, and significant down payments have discouraged plenty of borrowers in the UK from searching for a loan that suits the needs of their business. Also, if you are a small business owner who has a poor credit score, you will find more and more banks rejecting your application for a loan. Fortunately, the growing number of borrowers who are looking for reliable funding has opened the doors for direct lenders online who are ready to cater their different needs for financing. With loans from direct lenders, your options are flexible and getting approved is easy making borrowing a lot easier for businesses with unique circumstances.
Direct Business Lending
Businesses loans from direct lenders have thrived in the loan industry because they provide borrowers with something that traditional loans only cannot. Instead of uncompromising requirements and hard repayment options, loans from direct lenders are designed to cater the unique needs of business owners. Direct lenders providing loans understand that business owners like you do not have the time to go over piles of forms and paperwork that’s why they have tailored their application processes to be as seamless as possible. As a result, what you get is an online application that is simple and straightforward that can be completed and signed through your mobile device. And with the help of advanced technology, they can review your application and determine your affordability within minutes. What’s more, you can use the funds for nearly any business purpose you want.
Loans with Instant Funding
Sometimes, unforeseen business expenses can catch you off guard in the worst of times – when cash is tight and the money coming in your business is not enough to deal with emergency expenses. In these situations, loans with instant funding can be a lifesaver. And with the growing number of online lending companies who provide such financial products, it has never been easier to obtain the funds that you need, when you need them. So if your business is still at a stage where financial shortfalls are standard, having a lender that provides instant funding is indeed a blessing.
Instant decision within minutes
While traditional loans from banks are ideal options to some borrowers and certain circumstances, there are numerous situations when the general weeks-long process involved with their application criteria makes it to merely dragging given the dire business need. In times of emergency situations or if there are golden opportunities that need quick funding, turning to your local bank might not be the right decision. Thankfully, there is a quick solution to your pressing needs in the form of loans with instant funding. Some online lenders who can cater your loan request within minutes and once its approved, you can have the loan amount deposited into your bank account in the next day and often on the same day.
Why you need loans with instant funding
Every business is unique with their own set of needs for funding for every situation. However, here are some of the most common business expenses that loans with instant financing can become the ideal solutions:
- Equipment repair – If essential equipment in your business suddenly breaks down, even if it’s just a pizza oven, getting it back up and running is critical. If your operation becomes paralysed because of the failure of equipment you know how much money you lose every second it goes on. Taking out a business loan with instant funding can help you pay for the necessary repairs without much delay.
- Maintenance issues – If the building you are operating is quite aged, maintenance problems are a standard issue. From plumbing, electrical, to other maintenance issues, dealing with these minor but essential problems can affect your cash flow – mainly if they come at the least moment expected.
- Growing needs – If you are a business owner, you always welcome growth but often when your business becomes bigger so does the costs. From hiring new employees to purchasing new equipment, you need money if you want your business to grow. It is where loans with instant funding come in handy. They can help give you the financing that you need faster than traditional credits so you can take your business to the next level in the quickest time possible
These are just some of the instances when your business might need loans with instant funding. Knowing the best places to shop for a fast business loan when you need it the most can sometimes make the difference between solving a problem, taking full advantage of an opportunity, or not.