UK Small Business Loan
1. What is a small business loan?
Small business loans are designed for the person that has a good idea and wants to venture into the world of business to sell his idea to the public. These loans are in place to help you bring your ideas to life. This can be a challenging journey and a small business loan can get you on your way without the added stress of money. It is also in place for the person that has an existing business and needs to expand what he has.
2. Can I get a business loan if I am already in business?
Yes, small business loans are for those people that are just starting out or the ones that are established in business but needs a little help to keep their business going. You may want to expand your business and may not be able to finance the expansion without help and that is where a small business loan steps in.
3. What is a start up business-loan?
A start up uk business-loan is available to those that are just starting out in business but need a little help in doing so. These loans can be secured or unsecured it will depend on the lender but usually they prefer to have these types of loans secured to give them the security that the money will be paid back.
4. How much can I borrow for a small business loan?
Lenders offer business loans from the amount of 50000 to 1,000,000. You will find these loans at highly competitive rates from commercial lenders. These loans can offer up to 79 percent of loan to valuation with variable rates, which will depend on the status, and the length of the term of the loan.
5. When seeing a lender what should I take with me?
When you set up an appointment with a lender for a uk small business loan make sure you take a list of your projected start up cost and if this is going to be a secured loan take any papers that pertain to this business. Bring a business profile that details the nature of your business, a list of the projected annual sales, and the length and time of the ownership of the business if the business already exists.
6. Will collateral be required?
Yes, you will need collateral for a small business loan; in fact it is crucial that you have it. You will need a list of your collateral and the details that pertain to it such as the equity you have available, the equity you have in the business, and borrowed money and existing cash should be included in your collateral.
7. What information will they need about my personal finances?
A lender will need all the financial information you can provide about yourself. They usually want up to three years of previous bank statements plus your current financial statements. With secured loans the lender will ask for partnerships, officers and stockholders with more than 20 percent of the business. This all pertains to a small business loan.
8. How do I prepare for getting a small business loan?
There are two components to a small business loan one is the financial side and the other is the emotional side. Be sure you are ready to put your property at stake and make sure you do research before you commit to anything. You have to make sure there is a market for the product your offering to the public also.
9. What can I expect from the lender when I apply?
You can expect your credit to be checked extensively. When you get your credit report and make sure, the information is accurate. Credit scores can modify your interest rates greatly. If you have a good credit score you will get much better interest rates. If not, then you can expect a higher interest rate.
10. Can I use my personal property as collateral for a small business loan?
Yes, you can use both your business collateral and your personal collateral for a business loan. In fact, most lenders like this as it gives them more security on the money they are lending. For example, your home can be used as collateral on a small business loan. If you find that you don't have enough collateral, the lender will probably require a co-signer.
Thank you for reading our questions and answers about uk small business loans, remember to always check with a financial advisor when looking for more information about small uk business loans. You can use our uk directory on the left side for a full list of advisors in the uk - they will all be able to help you find more information about small business loans in the uk.
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