Compare Small Business Loans

Compare Small Business Loans

Are you a small business in the UK looking for a loan? Securing vital funding can be the make or break of a small business, ensuring you have the required money to invest in staff, equipment, furnishing your premises and improving your marketing activity.

To get a small business bank loan, it’s worth comparing applicable lenders to see what is available and whether you able to get a preferable rate. Find out more about small business loans below.

What is a small business loan?

• Designed for those looking to set up a new business or expand existing one
• Smaller amount of money
• Quicker decision than some business loan types
• Ideal for covering smaller costs when setting up

A small business loan is designed for those sole traders, start ups and small business owners to setup a new business venture or to invest in an existing small business to stimulate further growth.

This type of business loan is likely to be smaller than other loans, but it will also have a quicker application process. This means you shouldn’t have to wait long to receive a decision on your application, meaning you can get on with running your business without any hold ups.

How to get a small business loan

Applying for a small business loan is different depending on whether you’re a new business or start up looking for funding, or if you’re an existing small business applying for extra funding.

As a new business looking for a loan to get started, you will need to provide a business plan to show that you have a long-term strategy for success. It will usually include a cash flow forecast so you can make an indication of how much you will be able to repay per year. It is then up to you to stick to that forecast and make the required repayments.

If you already operate a small business and are looking for a loan, you will usually need to provide historical finances to show what your current cash flow is and what you’re projected to earn as a business in the coming years. This will help a potential lender calculate how much they’re willing to lend you in the form of a small business loan.

Am I eligible for a small business loan?

Your eligibility for a small business loan is usually based on your personal credit report and business plan, if you’re looking to launch a new business or start up. For existing businesses, you may have to rely on your business credit score and your financial records that will back up your ability to borrow money.

If you check out your credit report, you should be able to get a clearer picture on your eligibility including a look at your credit history and your credit score. This will show you the likelihood of being accepted for a small business loan. In addition, if you have ever searched for credit cards or loans using moneymatcher, you may already have an indication on whether you would be accepted for a loan.