A business loan can be used to get things off the ground, expand a business or finance new equipment. They work in a similar way to a personal loan in that you pay back a set amount every month for a set time and interest is added on top of the capital.
You can borrow larger amounts than personal loans, which are usually capped at £25,000 if they’re unsecured. How much depends on the lender and your circumstances but amounts of £100,000 or more are possible.
What do I need to apply?
Most lenders will set their own criteria you’ll have to meet to be eligible for a business loan. This includes things like how long you’ve been trading and a minimum turnover or profit level. They might want to see your business accounts and tax returns. You might have to produce a business plan too.
If your business is relatively new, your personal credit history will be used to assess your loan, and you might have to sign a guarantee.
Can a limited company apply for a business loan?
Yes. Usually a director will have to be the named person on the agreement, but they won’t be responsible for the loan unless the limited company is relatively new, and they have to sign a guarantee. A credit search is likely to be done on the director, but accounts and information held at Companies House will be used to asses the loan.
Get in touch
Commercial mortgages are not part of our offering, however, we have links to experts in this field and will help you on a referral basis. If you prefer to use the phone, call us on 01244 470 107. Alternatively, you can send an email to: firstname.lastname@example.org if you prefer.
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