SME Loan

SME Loan image

An SME loan or small business loan can be fairly elusive if you have been searching with your typical high street banks. You may have already tried and found that, at best, it would be a secured line of borrowing (secured against a personal or business asset such as your home or business premises). The bottom line is there are new funding options on the block, lots of them too.

What is an SME loan?

SME loans are business loans suited for small and medium-sized enterprises (SMEs) in the UK. SME loans can come in many forms of funding, including:

  • Unsecured SME loans
  • Secured SME loans
  • Invoice finance
  • Merchant cash advance

Why a merchant cash advance is the perfect SME loan

One product that links in with us is a merchant cash advance, otherwise known as a business cash advance. If your SME business takes credit and debit card sales and your turnover is more than £2500 per month on card sales, you may qualify.

It is unsecured finance and doesn’t have a requirement for you to put a commercial or personal asset against the loan for security. It’s also totally flexible as it runs in line with your cash flow.

An SME loan that's flexible

Unlike other types of commercial finance, where you repay a set amount each month, a cash advance repays when you make sales on your credit and debit card sales. So if your sales are low, your repayments are low, giving your business the financial flexibility it needs.

Other types of SME loans

SME invoice financing

If your business sells to other businesses, you will undoubtedly raise invoices as and when you make sales. The frustrating aspect with many SME’s is that businesses tend to slow pay after agreed terms. This means your valuable cash flow is tied up for at least 30 days or more.

This can be problematic if your business has bills to pay. Have a look at this link to understand how you can unlock the cash in your unpaid invoices. Up to 95% can be released by the invoice finance company.

SME loans for startup businesses

For startups, you have a whole world of crowdfunding websites to choose from. Each one has slightly different unique advantages and disadvantages in what is on offer, but the outcome is very similar.

Peer to peer and crowdfunding sites are great opportunities for new startups and business projects to get off the ground. Often backed by many small investors for a future return (ROI) on that investment. This can be financial or, in some cases can be product or service driven.

Applying for an SME loan

If your business accepts cards payments from customers, you could qualify for an SME loan in the form of a merchant cash advance. Apply now to get your free, no-obligation quote today!

If this isn't for you, then a great website for a range of SME loan options is Capalona. Multiple financial products are available to small and mid-size enterprises.


Keep up to date
Subscribe to get business news and tips direct to your inbox.

Thank you!

NACFB Members
BMCAA Members
FSB Members
Cyber Essentials Accredited