What are Business Loans?
A business loan is a loan product that is offered to business owners, specifically intended for business purposes. It could be used to help start a new venture, expand an existing one, buy stock ahead of a seasonal peak, access new equipment, manage cash flow, or finance other business-related needs.
Our team have relationships with lenders across the market and like all the financial services we provide, we have taken the time to understand these lenders and how they work to save our client’s time.
At NapeX Finance, we will always review our clients’ businesses, assets and liabilities, and credit profile to ensure we are using the most effective form of finance for you. We have a dedicated Business Finance Broker who is on hand to help provide information and advice on what your business may secure a Business Loan for, and how it works.
There are mainly 2 different types of Business Loans, these are Unsecured and Secured. Take a look at the summary points below on the differences, and contact us for more information.
What are the different types of Business Loans?
- Repayment terms: 6month to 5 years
- Typical lend: 10% of annual turnover
- New business’: Considered (ideally 6months trade history) with a typical lend criteria of an average £15,000 monthly turnover
- Credit profile: Preferably clean however explained discrepancies will be considered. Lenders will consider businesses with high levels of credit providing you can demonstrate affordability
- Rates: Predominantly Factor Rates (a factor rate is a method used by lenders of allocating a rate based on the individual company, as a result it is very hard to identify a rate before application)
- All types of assets:
We can work with you to lend against existing assets within your business, both new and old. We can also combine your property with assets within the balance sheet, helping us to release capital for our clients so they can fund a variety of business opportunities. Loan terms and LTV’s vary depending on the type of asset being secured.
- Business Mortgages:
Our team can help you to release capital up to 70% loan to value on a 1st or 2nd charge basis, this can be against your house or a buy-to-let, which can be used for a variety of business purposes. This type of finance is often more competitive than an unsecured loan.