January 31, 2023



Business Finance Options For Smaller Businesses

The Seed Enterprise Investment Scheme – This small business grant fund encourages investors to put...

The Seed Enterprise Investment Scheme – This small business grant fund encourages investors to put their money into new ventures by offering tax relief to those who buy shares. The Bounce Back Loan Scheme – The government will guarantee 100% of SME loans worth up to 25% of their revenue, plus interest and fees for the first year. Use our simple six-step finance finder and interactive content to learn more about finance and discover finance options that could help your business. Understand and identify suitable finance options to help your business with our Finance Hub. There is always the possibility that interest rates may go down, leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.

  • Each lender has their own requirements and often your business credit score is just one part of what they’ll be looking at when making their decision to lend.
  • You may find that your business is growing and increasing in its workload and success.
  • You could use the funds to carry out new plans – both essential and ambitious.
  • Whether you want to purchase equipment, inventory or increase working capital.

Funding Circle Business Loan – Funding Circle offers unsecured business loans for entrepreneurs who don’t want to use their assets as security. You must have been in business for at least three years, and you can borrow anything between £50,000 and £500,000. Plus, there’s no upfront https://www.hutchisonandmaul.com/ fee or repayments to be made in the first 12 months. The HSBC Small Business Loan – For loans of between £1,000 and £25,000, HSBC offers a variety of funding options. The bank offers a fixed interest rate and a three-month repayment holiday at the start of the contract term.

Business Credit Card

Both secured and unsecured https://www.wikipedia.org/ are available for business owners in the UK. Unsecured loans are typically smaller amounts at a higher cost with shorter repayment terms. However, if you require a larger loan, offering an asset as security against the loan may enable you to secure more funds at better rates.

small business loans

Apply today and get support with creating your business plan and cash flow forecast. We offer low-interest personal loans and free mentoring to help you start or grow a new business. This is just a general overview – check with your loan provider for their specific requirements before you apply to make sure you’re eligible. Sole traders can still have employees, a sole trader is someone who is classed as both the owner and operator of their business – there is no distinction between ownership and management.

Applicants may receive a different rate of interest based on their individual circumstances. All businesses have running costs and if you are running a shop for example, there will be many overheads that you will need to cover all year round. When things get quiet, we are there to help take care of these expenses. Before we get into the nitty-gritty, let’s take a look at a few of the most popular types of small business finance on the market today.

Finance Hub: Find Business Finance Options

They also have a fixed annual interest rate of six per cent, making it easier to plan repayments. Home Building Fund loans must be repaid with interest set at a pre-agreed variable rate. The Start Up Loans initiative provides government-backed personal loans for UK entrepreneurs to start a business. These government-funded loans are designed for new businesses, either in the planning stage or in the first 12 months of trading. You will still have to demonstrate that your business plan is viable.

Registering as self-employed with HM Revenue and Customs is just one of the topics we cover on Enterprise. Grow It – If your organisation works on social projects designed to support the local community, the Grow It award can provide up to £15,000 and expert guidance. Eligible deposits with us are protected by the Financial Services Compensation Scheme . Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered. To find out more you can read the statement of responsibilities, which details what’s expected of us, the lender and you the borrower. Yes, you are able to switch your Business Current Account to another provider while retaining your Business Loan.