Business Loans – The Inside Story

02nd February 2022

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Does Your Business Need A Financial Boost? Read On…

Healthy businesses wanting to expand, buy new machinery or take on new contracts may find that they are short of the necessary funds to ensure the opportunity is not missed. The obvious solution to boosting working capital is to look at business loans.

However, securing funding from one of the major high street lenders may not be as straightforward as you might think – especially if you are a small business.

High Street inquiry

A parliamentary inquiry earlier this year heard that small and medium-sized enterprises (SMEs) were finding it tougher than ever to take out business loans from the major banks.

The SME Alliance, which represents thousands of small businesses in Britain, told the inquiry their members were mistreated by lenders who were reluctant to lend to SMEs.  Also, terms of available business loans were often onerous and biased in the banks’ favour.

Lending to small businesses last year remained fairly static with the £5.6bn of new business loans drawn in the fourth quarter, some 11% down compared to the same period in 2016.

If you are a small or medium-sized business and finding it difficult to take out a loan to meet a new business opportunity, an independent finance broker like Anglo Scottish may be able to provide just the solution you are looking for.

When might business loans be needed?

Obviously it depends on the type of business and what stage it is at in its development. There are many reasons why business loans may be necessary:

  • A business may be wanting to expand its operations but not have sufficient working capital to meet its expansion plans
  • It may be necessary to move to new, larger premises better suited to its future needs as it continues to grow
  • A new business opportunity has arisen that requires investment in new plant and machinery to take advantage of it
  • That obsolete or outdated machinery may simply require replacing.

These are just a few of the situations where an injection of capital into a business via the route of business loans can make all the difference to its future growth and prosperity.

How does a business loan work?

business loan from an independent finance expert like Anglo Scottish can provide the opportunity to invest in business opportunities, while still protecting vital cash flow and spreading the cost of expenditure over a longer period of time.

Funding new projects from cash reserves can be a drain on any business, especially those that have not been trading for long. However,  an injection of capital into the business does not necessarily require the outlay of large, upfront sums or necessitate a charge raised against the company’s assets.

With a small upfront payment and easy-to-manage payments on a regular basis at competitive interest rates, a business loan represents a simple, cash flow-friendly solution for businesses of any size.

Things to consider

Before deciding to take out a loan, a business needs to carry out a reality check to determine whether it really is the right route to go down.

Consider whether a loan is plausible for your business. Do you have the funds to afford the repayments? Are your circumstances likely to change in a way that will make it more difficult to make the repayments?

Keep this in mind before signing on the dotted line. Although a business loan will inevitably give your working capital a boost, it should be manageable for you and your business in the long run.

What can a business loan do for you?

A business loan can help ease a company’s cash-flow anxiety without the need for asset-linked security. It can provide the funds to help meet a business’s expansion plans.

At Anglo Scottish we can arrange business loans, at preferential rates, ranging from £5,000 to £500,000 with no early repayment fees – quickly and efficiently and from a variety of different funders.

If speed is of the essence to ensure a business opportunity is met, we can move quickly to secure the right kind of deal for you.

We have long experience of providing business customers, both large and small, with loans to help them grow their businesses or ease their cash-flow problems.  And we have access to a large panel of preferred funders who specialise in providing finance to help businesses grow and flourish.

With years of experience supporting businesses of all sizes across the UK, Anglo Scottish Asset Finance provides a dedicated business finance service to all its customers, whatever sector they specialise in.

And when it comes to arranging a business loan, the team at Anglo Scottish can offer the expertise, experience and support necessary to organise, expedite and manage any agreement.

Want to find out more about how a business loan can be the right medicine for your business? Get in touch with Anglo Scottish Asset Finance today

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