Company loans are for businesses that are usually limited entities and trading in from the UK. There are many different types of bank and non-bank funding available for these type of companies. The trick is finding the best type for your business needs.
Finding the right funding line when searching for company loans.
We offer a product called a merchant cash advance which is growing in popularity amongst companies who trade with consumers. Businesses that qualify for this type of funding use credit and debit card machines otherwise known as PDQ terminals to process customer payments.
These payments are taken into account to determine how much a business is able to borrow. Let’s say as an example your business processes £3500 per month on credit and debit card sales then your business could qualify for a cash advance of a similar size.
Once you have received the offer of funding you decide upon a percentage of each future card sale that would sit comfortably with your business to repay the loan. As and when you make a sale thereafter a percentage of that card sale is repaid back to the lender.
This is a great way to repay as it works in line with your company cash flow. If you’re down on sales for the month and card takings have been a bit on the low side then you will be paying back a lower amount in line with those lower sales. This is unlike other forms of business finance whereby you repay a set monthly amount regardless of your lack of sales.
Company loans with us don’t have a requirement for a long detailed business plan, there is no requirement to place a property as security, there are no hidden fees or extra charges such as early or late payments. It is a straightforward unsecured business finance option that is backed by the UK government through the British Business Bank Investments.