Small Business Loans Explained
Bank lending is a normal part of trading as a business - but the multiple types of small business loans and varying terms can make it complex to know which you should apply for.
Some loans are specifically geared towards smaller companies, and others have minimum turnover criteria, so it's essential you know the pros and cons of your selected borrowing before proceeding with an application.
The Revolution Brokers team supports hundreds of commercial clients every year, facilitating competitive loans with minimum hassle.
If you'd like to learn more about any small business loan or information discussed here, please get in touch at 0330 304 3040 or email us at [email protected].
How Do Business Loans Work for Small Companies?
Loans for small businesses are the same as any other commercial lending product but are designed to assist SMEs in reaching their financial aims.
Most businesses will need to raise financing or take out borrowing at some point, and a cash injection might be used for a massive range of purposes. Common reasons to apply for a small business loan include:
- Expanding the company
- Investing in new equipment
- Buying more stock
- Relieving short-term cash flow issues
- Covering running costs
You must work out how and where you'll use the funding since this dictates which lenders are most suited to your loan application.
For example, you might want to consolidate other business debts, ease trading pressures during tricky periods, or set up something long term to help you gradually grow the business.
There are countless lenders to choose between, from mainstream banks to niche providers, so whatever you need your small business loan for, it's very likely there is a suitable product out there.
Many businesses hesitate in seeking the funding they need due to concerns about lack of trading history or previous credit issues. Still, an experienced commercial broker such as the Revolution team can guide you through the process.
