Compare Business Finance
Secured Business Loan
A Secured Business Loan requires collateral, such as property or assets, to back the loan. This type of loan generally offers lower interest rates and higher borrowing limits since the risk for the lender is reduced by the security provided.
- Application: Submit business and personal financial details, along with collateral information.
- Collateral Valuation: The lender evaluates the assets being used as security.
- Approval & Terms: Upon approval, the loan terms (interest rate, repayment schedule) are discussed.
- Loan Disbursement: Funds are released, secured against the agreed-upon assets.
- Repayment: Monthly repayments are made over the agreed term, with penalties if payments are missed.
Unsecured Business Loan
An Unsecured Business Loan does not require any collateral. Instead, lenders evaluate the creditworthiness of the borrower based on financial history, revenue, and other factors. These loans typically come with higher interest rates due to the increased risk to the lender.
- Application: Provide business financials, credit score, and revenue details.
- Credit Check: Lender performs a thorough review of the applicant’s credit history and financial standing.
- Approval & Terms: If approved, terms such as loan amount, interest rate, and repayment plan are established.
- Loan Disbursement: Funds are provided without the need for security.
- Repayment: Borrowers make fixed monthly payments as per the loan agreement.
Merchant Cash Advance (MCA)
A Merchant Cash Advance is a financing option that provides businesses with a lump sum in exchange for a percentage of future sales. Unlike traditional loans, there is no fixed repayment schedule, making this option more flexible for businesses with fluctuating revenue.
- Application: Submit proof of sales, usually by sharing credit/debit card processing statements.
- Sales Evaluation: Lender evaluates daily or monthly revenue from card sales.
- Approval & Terms: If approved, the lender provides an advance in exchange for a percentage of future sales.
- Disbursement: The advance is quickly disbursed to the business.
- Repayment: A percentage of daily credit card sales is automatically deducted until the advance is repaid.
Invoice Finance
Invoice Finance allows businesses to access funds tied up in unpaid invoices. This option is ideal for businesses waiting on clients to pay invoices, as it provides immediate working capital.
- Application: Submit outstanding invoices and business financials to the lender.
- Invoice Evaluation: Lender verifies the legitimacy and payment history of the clients responsible for the invoices.
- Approval & Terms: Upon approval, a percentage of the invoice value (typically 70-90%) is provided upfront.
- Disbursement: Funds are transferred to the business account.
- Repayment: Once the client pays the invoice, the lender deducts their fee, and the remaining amount is given to the business.
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Value must be between £5,000 and £10,000,000
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