In Small Business

What is a Limited Company Loans product?

Limited Company Loans are commercial business loans that only private Limited companies within the UK who are registered with companies house can apply for. These loans are underwritten based on a business being incorporated with Companies House with the status of a limited company.

Unsecured limited company loans

Unlike many other business loan products, we offer an unsecured commercial product which doesn’t require the borrower to secure a personal or business asset against the borrowing. It is a straightforward cash advance without the need for security. You may have looked to your local bank for a business loan product and found that there is a requirement for such security – this is the case with many other types of commercial loan product.

How does it work?

We have a product called a business cash advance which works in line with your cash flow. Firstly, a loan amount is agreed based on your monthly credit and debit card turnover. A repayment amount is calculated based on a factor rate. This can vary depending on various circumstances and it’s a good idea to get the best factor rate in the market. You can do this by applying here.

A percentage of each future credit and debit card sale is agreed with the lender to repay the loan as and when you make sales. So, when you make a sale the agreed percentage of that sale will automatically be repaid to the lender via the merchant payment service provider. On a business cash advance, your cash sales are not taken into consideration. The loan is only calculated on card sales.

You will also agree a period of time that the loan is taken across, whether it’s just a few months, 12 months or more.

What makes a cash advance so versatile?

A cash advance works for a business looking for Limited Company Loans. It is versatile in that it repays only when your business makes a sale. So, if your business has low sales for the day then you pay back less for that day. If across a month period all your card sales are low, then you will be paying back less in total for that month. And, when you have a good month on sales you will repay the loan quicker.

This for many businesses is far better than a fixed monthly repayment value which many other business loans products require a business to pay. By offering repayments based on sales your business can repay without the pressure of a fixed monthly repayment.

Limited Company Loans – what are they used for?

They can be used for any business purpose. Whether you are looking to refurbish your premises, buy more stock, expand your property, create a marketing campaign and advertising budget, take on new staff, use it to pay tax bills or other expenses or even buy company vehicles it offers a quick and easy way to find the funds you need for your business.