When starting out businesses require agile access to cash in order to capitalise on emerging opportunities.
Gone are the days when you make an appointment with the bank manager, discuss a business loan and they make their decision based on your creditworthiness and the longstanding trust-based relationship you have. Since the global financial crisis, high street banks have raised barriers to fast business loans and finance and fail to offer loans to all but the lowest risk. Nowhere is this reluctance more challenging than in the world of SME’s (Small and medium sized enterprises).
And yet, SME’s should not be overlooked as they make up over 99% of private sector businesses and approximately 50% of UK business turnover (excluding financial services).
However, within the first five years of business, 60% of all SME’s will fail. A major part in the downfall of SME’s is the difficulty in obtaining quick business loans. When starting out businesses require agile access to cash in order to capitalise on emerging opportunities. Large capital outlay requirements are also a hallmark of new ventures but carry inherent risk, yet lack of investment can cripple a business before it even starts.
That is why fast business loan providers have emerged recently to offer SME’s the ability to get hold of cash without the associated hassles provided by banks.
Industries where they are especially beneficial to SME’s include:
- Tractors, combine harvesters
- Milking equipment
- Heavy plant
- Demand for sustainable and environmentally friendly practices
- Equipment – machine tools, lathes, robotics
- Bulk inventory purchases
- Seasonal inventory
- Point of sales technology
- Initial fitting
- Catering supplies
- Room upgrades
Common practices of quick business loan providers which differ from traditional banks include:
- Offer between £10,000 to £500,000 unsecured loans
- Online application
- Approval within 24 hours
- Access to funding within 3 days (from application)
- Short term funding loans (from 6 months)
- Customised repayment to cash flow model.
As well as unsecured loans, many funding loan providers offer secured loans of up to as much as £2 million. Although the paperwork requirements are more rigorous than the unsecured loans, they are still much less arduous than those of a high street bank.
Lending money via quick business loans is a thriving industry, offering an opportunity for SME’s in these uncertain economic times and helping drive industry. This flexible business model also extends to the loan arrangements and repayment models. Whereas traditional banks tend to offer simplified monthly payments without regard to cash flow, many innovative funding loan providers offer different solutions for their customers including:
- Traditional funding loan – with a variety of repayment methods.
- ‘Merchant cash advance’ – against future credit/debit card payments. Dependent on cash flow
- Hire purchase
- Lease/rental financing
- Invoice loan – covering money owed by clients (often a company’s biggest asset)
- Stocking loan or inventory finance (releases capital held against inventory, suitable for seasonal retailers)
If you want to discuss the fast business loans we offer further, please feel free to contact our friendly team on 0800 999 69 62.