What are Business Loans?
Business Loans for UK firms provide an infinitely flexible method of funding solutions that can be tailored to suit the specific demands and needs of every business.
Almost all business finance requires some form of security:
- Mortgages – buildings.
- Asset finance – vehicles, plant/machinery or equipment.
- Invoice Finance – debtor book.
- Overdraft – debenture over all business assets.
However business loans are different. In most cases the only security sought, if any, is a directors personal guarantee which does not normally extend to charges against their property.
Indeed some business loans are agreed without any guarantee requirements and are advanced based on the strength of the applicant company.
Business Loans benefits
Business Loans offers many benefits to UK businesses, including:
- Cashflow Benefits – the obvious primary benefit to getting a business loan is the immediate cashflow improvement a business receives and the options this gives it to take whatever actions it wishes to make. In most cases firms can trade through temporary hiccups with a short term cash injection, and for growth reasons additional working capital can turbo charge a businesses growth aspirations.
- Growth Benefits – without working capital, many businesses would be unable to scale their operations in the way they would wish. So small businesses never become medium businesses, and medium businesses never become large businesses. Funding, when applied in the right direction, can apply the multiplier effect in the scale of a businesses operation.
- Cost Consolidation Benefits – Businesses often struggle to service existing debts that were originally set over an unrealistically short time frame, or due to a downturn in business or economic recession. Firms can improve their immediate cashflow position by consolidating existing debt over a longer term business loan. Whilst this would inevitably mean greater cost overall, it may mean the difference between a business trading through a difficult period or running out of cash.
- Security Benefits – all forms of lending require some form of security offered by the borrower to the lender. Overdrafts, for example, will typically require the business to offer a debenture over all business assets to their bank. Sometimes this can extend to charges over directors’ homes. Security for Business Loans, on the other hand, is often entirely unsecured. The lender will underwrite on the strength of the businesses financial information and in many cases is happy to lend on an unsecured basis. Where security is needed it is mainly in the form of an unsupported directors guarantee which does not extend as far as requiring charges against directors primary residential property.
Types of Business Loans we offer
Business Loans can be arranged typically from 3 months up to 60 months and can therefore solve a wide number of issues from very short term to longer term funding requirements.
Typically a business loan is a suitable option if none of the above facilities are more appropriate to the purpose funding is required for.
A business may need a 3 to 12 month loan to cover an unexpected event for which funding is immediately required but can be cleared very quickly by future revenue or perhaps a lump sum of funds due to be received shortly.
Examples of this could be to cover tax bills, insurance premiums, a bad debt, clients changing payment terms, a vehicle or asset breakdown or other short term cashflow blip.
Business loans between 1 and 5 years are often sought for medium to long term requirements. These can include investment in growth to fund new staff costs with turnover increases taking time to catch up with the immediate additional employment cost.
Other examples can include refurbishment of commercial property, other business debt consolidation, funding to buy out a shareholder, to assist in providing liquidity to trade through an industry or general economic downturn or recession.
Why choose MacManus Finance for Business Loans?
With MacManus Finance you are in safe hands. We are directly authorised by the Financial Conduct Authority and are full members of the National Association of Commercial Finance Brokers, and have a customer base of almost 300 UK businesses that we have supported for over 15 years, and an extensive funding panel allowing us to offer your business a one stop shop solution.
Our business ethos is based around the phrase “Never Just a Number” – and we take pride that our clients never feel like they are just a number to us, as so many business owners are made to feel by larger financial institutions.
Your business success is our business success, we never take our clients for granted, and will always aim to deliver more than our clients expect.
How to apply for Business Loans with MacManus Finance
We make your business loan journey as simple as possible.
From your first call, email or completed webform we will act as your trusted partner, understanding your objectives and putting together options for you to consider.
We may need to ask you some general business questions and ask for some financial information from you in order to carefully prepare your personalised quotation from our funding panel.
Once you have reviewed your no obligation quotations and are happy to proceed we will prepare your application and liaise with the lenders to secure the funding you need.
Unlike some brokerages, we do not charge you any payments or fees for our brokerage service, so your engagement with us is entirely cost, risk and obligation free.
Once agreed we will ensure that completion happens efficiently and to your timescales.
To begin please call 01443 800621, email firstname.lastname@example.org or complete the webform below.