Unsecured Business Finance is quick and easy to obtain.
Business loans have historically offered a time-consuming approval process that detracts your attention from focused day-to-day operation of the business. Quite often this is at a time when you need to have a keen eye on the cash-flow, not on form filling or the banks traditional application process. From speaking with other like-minded borrowers, it’s likely that the need for a short term unsecured facility is to plug a specific gap. This may be due to an unforeseen problem or event which requires your full and undivided attention.
It’s clear that due to recent climatic events in the global economy, retail banks and other traditional lenders have become more cautious in regard to lending to SME and owned managed businesses. Feedback suggests it is becoming more difficult to obtain even a small business loan or overdrafts. Banks can often request a higher level of personal security to support their loan advances before they are willing to transfer funds. This results in fast, short term lending being more difficult to find.
New to market platforms are the enablers for peer-to-peer lending, allowing new forms and sources of capital to reach the markets at an astonishing pace. This, coupled with new streamlined underwriting process and pricing structures can all add up to be an attractive alternative for the SME business owner and their borrowing options.
Terms vary from funder to funder but generally borrowers, businesses owners and their Directors can tap into facilities from £1,000 to £1,000,000 with the higher loan amounts coming under greater scrutiny than the lower levels, as you would expect.
The funds can be used for a few days up to 2 years and drawdown of funds can happen in a few days’ subject to the provision of the correct supporting information. The process is all actioned online via a secure web portal and each loan offer is bespoke to the business making the application.
While these solutions are flexible and affordable they do come with some conditions; the business must have a trading history of 6 months plus which can be evidenced, the maximum funding is based on 2 months’ revenue. If you have a poor personal credit score it may be possible to borrow, every application is considered on its own merits.
The application process will involve basic information about the Directors, Shareholders and will be supported by a joint and several personal guarantee which will remain in-force until the loan has been repaid. We can offer personal guarantee insurance to mitigate your personal risk. All lenders will require your latest accounts, your most recent management accounts and business bank statements for the most recent 3-6 months of trading.
Keen to find out more? Give our team a call on 0131 564 0172 and we can direct you to the funding solution that is appropriate for your business.
0131 564 0172