What is a Business Loan?A business loan is like any other loan, but one that is used specifically for business-related purposes. It's often one of the first things businesses consider when they want to raise capital.  Loans can be taken out to pay for exciting expansion plans, to buy new stock or specialised equipment, or, in some cases, they can be used to buy an existing business. Can You Borrow Money to Buy a Business?Yes, you can borrow money to buy a business. It's something many entrepreneurs do each year and it can often prove to be a quicker route to running a successful business.  Starting a business from scratch is a time-consuming process. It comes with numerous risks and challenges, whereas buying a business, though it's not risk-free, can be an easier, quicker and therefore preferable option. The Advantages of Buying an Existing BusinessBuying an existing business can often be a better option than starting one from scratch. The business you're buying is likely to have already established offices or premises and, more importantly, it may even already have an established brand and pre-existing customer base. These things are the result of years of work, and buying a business that has them in place already means you're able to bypass this work.  You'll also bypass many of the fees associated with starting a business, such as paying to get it registered, start-up costs like Wi-Fi, consultancy fees, and stock. All of this could, in the long run, save you money and is almost certain to save you time in the short to medium term. Getting a Business Loan to Buy a BusinessIf you want to buy an already-established business, various financial choices are often available. One option is securing a loan from a bank or building society, as you would for a mortgage. One of the main things that a lender will look at when evaluating your application is the business you are hoping to buy. Its financial track record will play a big part in how much you are able to borrow. If the business is in good financial condition, you will be able to borrow more because the bank will have more confidence in recouping the loan. A business in bad condition will therefore only warrant a smaller loan. Other factors, such as your own financial condition and value of assets will also be taken into account by a lender when they are assessing your borrowing capabilities. Get a Business Loan TodayIf you do decide that a business loan is the best way to finance buying the business you want, we can help. Just answer some basic questions about your finances and, using this information, we will find the most suitable loan provider for you. It's completely free and non-committal, so tap the button to get started. 

Does the UK Government Offer Business Loans?There are several UK government loans available for business in the UK. At the time of writing this, there are 29 business loan schemes currently on the Government's website aimed at easing access to trustworthy sources of business loans. Some of them are catered to specific business sectors and industries, while others are catered to specific regions and locations. The Government's list may be a good place to start if you or your business is looking for a reliable place to secure a loan. The Government Start-Up LoanAs well as having schemes in place to help businesses find a loan, the UK Government also provides loans to businesses themselves. The Start-Up loan scheme is popular amongst small businesses in the UK. Unlike a traditional business loan, the Start-Up loan is a personal loan to be used for business needs, ranging from £500 to £25,000. They come with a fixed annual interest rate of 6%. Additionally, these loans are unsecured, meaning you don't have to risk any of your assets, and there's no need to find a guarantor to back your application.How Much Money Can You Borrow With a Start-Up Loan?Each owner or partner within a business is eligible to apply for up to £25,000 individually, with the total amount available for a single business being capped at £100,000. Those who are approved for the Start Up Loans program will receive 12 months of complimentary mentoring, which provides valuable guidance and access to exclusive business offers. These added benefits are aimed at increasing the chances of your business succeeding.Before You ApplyAs you can probably guess, there are a few requirements you and your business need to meet to apply for the scheme. To apply for the loan you need to live in the UK and be 18 or older. You also need to have started (or have plans to start) a business in the UK that has been trading for less than three years (36 months). Additionally, applicants will undergo a credit check as part of the application procedure.How to ApplyThe Government understands that you may not have a lot of spare cash lying around as you work to get your business up and running, that's why the application process doesn't require any fees. There's also a choice to repay the loan anytime over five years, and there are no penalties or fees for early repayment.

Key Steps To Improve Your Chances of Being Approved for a LoanIn the dynamic landscape of business, financial hurdles often appear when least expected. However, a less-than-perfect credit score can cast doubt on the feasibility of obtaining a business loan. The good news? A poor credit history doesn't necessarily slam the door on loan possibilities.  With the right strategies and a proactive approach, businesses can significantly enhance their chances of securing the financing they need, even in the face of a less-than-ideal credit profile. This article focuses on how businesses with less-than-stellar credit scores can still secure the loans they need. We'll go through why adopting a strategic approach could mean your business can apply for loans with confidence, despite your credit score constraints. Remember that lenders who offer loans to businesses with poor credit typically offer a higher interest rate than they would to a business with a good credit score. So it's best to prepare to receive a high interest rate from your lender. It's really important, therefore, to review your offer to ensure the proposed interest rate is affordable. Keep reading to find out how to improve your chances of being approved.  1. Prepare Your Application DocumentsWhen finding business loans with bad credit, it's important to prepare your application documents. Before approving a loan application, most lenders require a business plan and copies of financial statements; including a profit and loss statement, balance sheet, and cash flow statement.  This is especially important when applying for a bad credit business loan because it demonstrates your ability to repay the loan, despite your poor credit score. It may also boost your chances if you provide proof of collateral; this gives a lender more confidence that they'll be able to recoup any losses. 2. Improve Your Credit Score This might be an obvious solution but, while it may take time, improving your credit score can help you qualify for better loan terms in the future. Making sure you pay your bills on time, keeping your credit utilisation low, and disputing errors on your credit report. Over time, these things will mean your credit score could improve. While you may require a loan sooner rather than later, if you can hold off to focus on improving your credit score, this might be the best plan for you to not only improve your chances of getting a loan, but also to get a better interest rate offer.   3. Look For Alternative MethodsNot all lenders are willing to work with business owners with bad credit. Your bank may be willing to work with you if you have a relationship with them, but you might need to look for an alternative business lender like a private investor or a crowdfunding campaign. You can also take steps to reduce your operating expenses and apply for a lower loan amount.