Small-business borrowing: compare options by need

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Small businesses can explore several forms of finance. The most useful starting point is the purpose, timing and repayment source, not simply searching for the largest possible loan.

Define the gap

Separate a one-off investment from a recurring cash shortfall. Prepare a short forecast and identify the amount needed after any business contribution. Borrowing more than required creates unnecessary cost; borrowing too little can leave a project unfinished.

Compare structures

A term loan, overdraft, equipment agreement and invoice facility have different repayment and security features. Ask about fees, personal guarantees and early exit terms. Do not compare products on monthly payment alone.

Prepare the application

Use consistent accounts, bank statements and debt figures. Explain the plan in plain English and test it against weaker sales. A provider's eligibility criteria are only the first stage; approval and pricing depend on the individual assessment.

Explore your next step

Contact Milestone Funding to discuss your business and funding needs, or explore the funding options.

Further reading: British Business Bank: finance options.

General information, not a personalised recommendation. Availability, costs and terms depend on the provider and circumstances.