Business loans can provide short or long-term finance to companies who need assistance with expenses that they are unable to pay themselves. In the short-term they can help cover salaries when things are tough or until a new company gets of the ground. In the long-term they can help fund expansion plans or specific business projects. No matter what the size of the loan, there is usually a solution available that can help with cashflow.
Business Loans are incredibly popular as they provide numerous options to suit all types of businesses. As lenders continue to see an increase in demand, they can, on occasion, become highly selective about their approval criteria. This is when a good line of communication with any potential lender is critical. At the initial enquiry stage, they will want to see a well-thought out plan of what the money will be used for. They will take into account the company’s history, the amount of debt they carry and any risk factors the lending might bring. Being proactive from the outset and developing a good relationship with any potential lender is a must and will ultimately have a positive impact when it comes to a successful application.
Interest rates on business loans can be fixed or variable. A fixed interest rate means that the interest will remain the same for the term of the loan making budgeting easier. A variable rate of interest will fluctuate based on a number of factors and can mean that companies may face higher repayment costs in the future and so must plan accordingly.
Remember, interest rates on loans can be quite varied so it is important that businesses take into account the repayment costs before making any final decisions.
If you need some help or simply have a question in relation to Business Loans please feel free to call our team on 01993 706403 or e-mail enquiries@ngifinance.co.uk.