Business loans

Unsecured borrowing does not usually require a charge over a named business asset. It does not necessarily mean the owner has no personal exposure,…

A limited company can borrow in its own name, but directors may still be asked for guarantees. It is important to distinguish the company’s…

Spreading borrowing over several years can reduce each instalment, but the longer period may increase the total cost. The right term depends on the…

A cash-flow loan may help bridge the time between spending and receiving income. Before applying, identify whether the gap is temporary, seasonal or caused…

A VAT bill can create a sharp cash requirement, particularly when customers have not paid. Borrowing may spread the cash cost, but it does…

Short-term borrowing can cover a defined cash gap, but it needs a credible source of repayment. A brief term does not make a loan…

Debt consolidation replaces several commitments with a new facility. It can simplify administration, but a lower monthly payment does not necessarily mean a lower…

Refinancing replaces an existing loan with a new arrangement. The comparison should account for the old loan’s remaining cost, the new loan’s full cost…

A substantial funding request usually needs a detailed explanation of where the money will go and how it will be repaid. The size of…

Growth funding is useful only when the planned expansion can support its costs. A business may need cash before new sales arrive, particularly when…