How to Obtain Financing for a
Small Business in the UK
According to research carried out by leading UK lender NowLoan, small businesses in the UK are increasingly dependent on finance to help to pay for new company projects or investments.
Running a small business in the UK is challenging. This is, in particular, true for high street retail shops and other small high street businesses. The most recent series of The Apprentice saw Lord Alan Sugar sponsor entrepreneur Carina Lepore into business. Many young entrepreneurs such as Carina finds it hard to find finance deals from traditional UK lending sources such as banks.
Where Can I Find Finance For My Small Business In The UK?
Where can you find finance for a small business in the UK? Other lenders are now popping up and often taken over where UK banks left off. They may not be traditional lenders, but the truth is that lenders such as NowLoan, have helped both young and senior business owners to find the right finance deal for them.
What Are The Advantages Of A Business Loan From A None Traditional Lender?
Less traditional lenders are less "set in their ways" when it comes to business finance. Unlike traditional banks, many smaller lending organisations or lending companies, see financing a small business as a commercial opportunity. For the borrower, there are many advantages of borrowing money from a lender such as NowLoan.
If you have ever tried to borrow money from a bank, you will know that doing so is rather a rigmarole, to say the least. Entrepreneurs or existing business owners often say it takes a long time to get hold of funds. That could mean a lost business opportunity for many.
How To Finance A Small Business
Are you thinking about financing a small business in the UK? Slightly different terms and conditions apply when you want to finance a new business vs an existing UK business.
If this is the first time you are setting up a business in the UK, the lending company may want to have some security. Your loan application is much more likely to succeed if you own your home and have the capital to put into the business. Your new business is, after all, a step into the unknown for a lender. Also, they don't know you. Having a previous credit and loan history can often make the procedure easier.
What if you have an existing business? Things are often, but not always, a little bit easier when you have an established business. When you have been trading for a while, you should have a proven track record. You will also have accounts that you can show to a potential lender. That helps a lot.
What about a credit check? Lenders will still want to run a credit check on you or your business. That does not mean that you are not going to miss out on finance if your credit history is less than perfect. But the one thing that may put a lender off is County Court Judgements. However, lenders do review each business loan application on its own merits.
Would you like to know more about business finance in the UK? When you want to know more, contact NowLoan and let their professional loan advisers tell you more about available opportunities.