Below are some of the methods you can use to get a business loan.
Asking your local bank
Traditionally, businesses have sought funding from their local high street bank. The potential advantages of obtaining a business loan in this way is that your bank is likely to know you better and you may have developed a good working relationship over a number of years. You may also prefer to go to a bank and speak to an advisor in person which should help to identify your funding needs. The disadvantages tend to be that the bank may not wish to provide small business loans and start up business loans given the higher risk associated with these ventures.
It may be necessary to seek alternative methods of funding, especially for small businesses, for example, invoice financing, factoring, cash flow financing, private equity, peer-to-peer lending and other crowdfunding. Companies seeking loans should keep their finances in good order and ensure that their annual returns are filed on time. Sole traders aiming to secure business loans should increase their credit score by paying off existing debts and ensuring that they make payments to suppliers on time.
Do your research before applying
It is worthwhile to carry out your own research comparing the rates of and terms of different loans to determine which would be most suitable for your business. You should particularly look into whether you need a secured business loan or an unsecured business loan as the interest rates tend to be higher for the latter.
Contact a broker
At Francis Wilks & Jones we have excellent contacts with various brokers who are all ex industry experts. If you do need us to put you in touch with a broker, then simply ask and we can help arrange it.
Please contact one of our banking and finance lawyers for your friendly informal consultation on business loans. At Francis Wilks & Jones, we have significant experience in transactions involving drafting business loans. We are highly skilled and have advised many companies on their business loans. We offer quick and effective advice. Whatever your situation, don’t delay. Call now for a friendly consultation.