There are around 6 million small businesses in the UK, also known as SMEs, where there are less than 250 employees in the company. SMEs make up approximately 99% of businesses in the UK and many benefit from small business loans in order to stay on top of cash flow and grow successfully.

Many brokers work with specialist small business loans companies, which are non-bank lenders, in order to help businesses access the funds they need. Trying to get a traditional bank loan can take a long time and include a lot of paperwork, but small business loans online can provide quotes in less than 30 seconds and funds can be available within just a few days.

Why Should I Apply For A Small Business Loan?

Small business loans can have incredibly low APR, subject to status, and are generally much cheaper than using a bank loan or overdraft facility. Especially for fast growing companies! A loan can facilitate the finance you need without giving away shares or equity in your business.

The flexibility of SME loans means that you have fixed monthly payments and can usually pay early if you need to. So if you find that you have used the money wisely and have caught up with your cash flow, or helped your business grow, you can pay off your loan and usually save money by doing so.

There are also a number of different small business loans available, to assist those with different circumstances and credit histories. Whilst the lowest rates will usually be available for those with good credit scores, there are options if you are looking for bad credit loans too.

For instance, you can apply for a peer to peer loan, use a guarantor, or get a secured small business loan against some collateral in your business. This collateral could include your office premises, equipment or outstanding invoices.

What Can Small Business Loans Be Used For?

• Growing a business
• Purchasing new products and equipment
• Helping cash flow
• Getting an advance on your unpaid invoices
• Hiring new staff
• Renting out a premises
• Legal and compliance
• Marketing and PR

Am I Eligible?

To get an initial quote, you just need to be a registered company in the UK, have a business bank account and be trading for a minimum of 12 to 24 months. The latter is because the time you have been trading can give an indication of company turnover and revenue.

Ideally, small business loan providers prefer to lend to companies that are profitable and are not in huge amounts of debt. However, a little bit of debt can be normal, and perhaps the reason for needing the loan in the first place.

The application must be made by the company director, and if you wish to proceed with the initial quote, the individual will undergo a credit check to assess their eligibility. Where possible, the small business lender wants to know that the company director has not recently experienced bankruptcy or has several other debts outstanding.

If you have a bad credit history, you can look at applying for a secured business loan or using a guarantor.

How Much Can You Borrow Through An SME Loan?

You can usually borrow up to 25% of your company’s annual turnover, however this could be more depending on the lender you are matched with. Most lenders will assess the profitability of the company, to determine how much you’re able to borrow.

How Fast Can I Get A Small Business Loan?

Receiving an initial quote should only take a few minutes, and if you wish to proceed, you will be required to provide a little more information such as filed accounts and credit checks. Most successful applicants receive funds within just a few days of completion.

Using a broker service means you can match your business loan requirements with the lender with the best terms and most competitive rates. Applications are typically free to make and any quotes should be completely no obligation. Reputable brokers will also ensure that every business loans provider they work with is licensed, responsible and can help you get the finance you need.