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Commercial Experts is a business-to-business comparison service. Whether you require funding to help boost your cash flow, buy new equipment, hire additional staff or refurbish your premises, then you've come to the right place.
Trusted by thousands of companies every month, CommercialExperts.com provides access to a range of business finance options. These include small business loans from £10,000 and large business loans up to £200,000+. If you are a new business looking for fresh funding to get you going, or a more established company looking for additional funds to further spur your growth, then we can help.
With access to business loan lenders, CommercialExperts.com is perfectly placed to introduce and assist you in finding a suitable loan.
Apply with business loan providers in 3 steps
1. Complete our assessment form (takes just a few minutes)
2. Based on your specific criteria, our partners search business loan providers (all for free and with no obligation).
3. Apply for a business loan and see how much you could borrow.
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About Business Loans
Most businesses will need an extra injection of cash at some point in their life.
This may be to resolve a cash flow issue, to make a large purchase or it could be time for your business to take that next step.
There are numerous banks and lenders out there, meaning that looking for a business loan can often be a daunting and overwhelming prospect.
That's why we've put together this easy-to-understand guide, detailing everything that we believe you need to know with regards to business loans.
What is a business loan?
A business loan is a loan that a business uses specifically for business related activities.
This may be for new inventory, operations, property or anything else that a business may need to thrive.
What types of business loans are available?
1
Secured business loans
A secured business loan is a business finance option that requires you to put forward an asset as collateral, usually a property or piece of equipment.
As this is less of a risk to a lender, typically these will come with better terms and larger loan amounts.
Remember that if you fail to keep on top of payments, you are at risk of losing the asset you put up as collateral.
2
Unsecured business loans
These do not require any security to be placed against the loan meaning that there is far less risk to you should you fail to keep on top of payments.
Equally, with more risk placed on the lender, rates and loan size will not be as favourable as those that are secured against an asset.
There are numerous types of unsecured business loans available:
1
Bank Loan
Will be found from most high street banks. They have been more difficult to get hold of in recent times but are still a popular and effective option for businesses that have a solid credit rating.
2
Alternative Business Loans
These tend to be organised through online platforms. Rates, terms and eligibility criteria will differ depending on what lender you choose.
3
Lines of Credit
These are given to businesses so that they can drawdown money as and when it is required. Interest is then paid on the balance owed.
4
Merchant Cash Advance
Merchant cash advances aka business cash advances are repaid instantly when your business takes a card payment from a customer.
If you don't already take card payments then your business may benefit from doing so.
5
Invoice Finance
This involves 'selling' unpaid invoices to a financer who makes their value immediately available for a fee.
If this sounds like it would be beneficial for your business then see our dedicated Invoice Finance application page HERE.
Fixed rate vs variable rate loans
This is a fairly simple comparison.
Fixed rate loans will come with a fixed rate of repayment that will continue throughout the agreed repayment period.
A bonus of a fixed rate is that you're aware at all times as to what your monthly repayments will be.
A variable loan however will not and this will come with a rate that is subject to fluctuation, determined by market conditions.
Sometimes this will work in your favour and you will pay less than other fixed rate alternatives.
Sometimes it will not and you may pay more than if you were on a fixed rate.
Who is eligible for a business loan?
Eligibility will depend on a range of factors.
Like any loan, credit history checks will be required but you may also be asked to show any business plans and/or accounts.
It is always best to make sure that all of your finances are in order and that you are as prepared as possible to increase the chances of approval for a business loan.
You may feel a loyalty to your current bank to take a business loan out with them, but always remember that it pays to shop around.
What are the benefits of a business loan?
1
Offers flexibility whilst offering new or struggling businesses long term security.
2
Fixed and variable rates of interest are available.
3
Some lenders may offer a repayment holiday which means that you will be entitled to payments breaks.
4
You'll keep control of your business without the need for outside investors.
Which business loan is right for me?
Every business is different and will require a different business loan to fulfil their unique needs.
It is essential that you choose the right business loan for your business.
It is best that you ask yourself a few questions when seeking out a loan seeing which criteria best suits you.
These questions may include:
How much do I need to borrow?
How long until I have to repay the loan?
How much can I afford to pay back each month?
Are unpaid invoices an issue for my business?
Do I have any equity tied up in property?
Do I need a loan for a specific asset?
What is my personal and business credit rating?
Do I need the money available in a lump sum or can it be spread over a period of time?
How can I get a business loan?
Hopefully that's cleared up some questions that you may have regarding how a business loan can help your business.
Now the last one you most likely have, is "how can I get a business loan"? Well, the process couldn't be simpler; all you have to do is click the "Apply Now" button to start comparing prices in minutes.
Our service is free and there's no obligation to commit, so click the button, follow the prompts and get comparing now.