How to Get a Business Loan

A business loan is an important commercial finance facility, giving your business access to a lump sum of cash to be repaid over a pre-agreed period of time, with interest.

Business loans can be long-term or short-term agreements, giving your business the flexibility you might need to grow, navigate seasonal payment cycles and generally support a more sustainable cash flow.

Find out how to get a business loan with Anglo Scottish today.

What is a business loan?

A business loan refers to a sum of money borrowed by a business from an external lender. Traditionally, the only lenders available were large banking establishments. However, in recent years, a number of alternative lenders have made it easier for businesses to access the funding they need.

Business loans can be used for a number of different purposes, from business growth and expansion to meeting short-term costs and activities such as R&D, recruitment and more.

By applying for a business loan, your business can unlock opportunities that would have been impossible to access with internal capital only.

What documents do I need when applying for a business loan?

The exact documents required when applying for a loan might vary slightly depending on which of our approved funders you choose to use – but there are a few key documents that will be required to access finance via any of our lenders.

These include:

A business plan

This outlines your business model, goals, market analysis and how you’ll use the loan.

Financial statements

A profit/loss statement, balance sheet and cash flow forecast, all of which will be used to establish viability of repayment.

Business bank statements

Usually between 3 and 12 months of statements.

Tax returns

For sole traders: personal tax returns (SA302s)

For limited companies: company tax returns (CT600)

Once the necessary documents have been provided, we’ll begin vetting our panel of funders to find the perfect partner for you.

Types of business loan

There are two key types of business loan – secured business loans and unsecured business loans. The key difference here is the requirement of collateral.

Under a secured business loan, the lender will require some form of collateral, such as real estate, equipment or inventory. In the event that the loan is not repaid, the lender reserves the right to seize the agreed collateral in lieu of payment.

Typically, secured loans offer more favourable terms – such as lower interest rates and access to larger sums of money – due to the reduced risk for the lender.

Therefore, if your business has valuable assets that you are willing to use as collateral, a secured loan could offer better lending terms.

Meanwhile, unsecured loans do not involve collateral. Instead, they rely on a business’s creditworthiness or business performance as indicators that the loan will be repaid.

As well as business loans, there are a number of other facilities available for businesses looking to secure funding – these vary from short-term solutions, such as invoice finance and bridging finance, to longer-term funding sources, like commercial mortgages.

If your business is looking to secure funding that will be used for the purchase of a specific asset, then asset finance may be better-suited to your needs. Anglo-Scottish offers a number of dedicated asset finance options, particularly if you operate within a specific sector.

How to choose a business loan lender

Choosing the right lender for your business loan can be difficult, due to the sheer number of options, terms and conditions to take into account. At Anglo Scottish, we make it easy for you.

We always manually underwrite any quotes, meaning you get a personalised service – and not a machine-powered, generic agreement.

When you first get in touch with us, we’ll work with you to find out key characteristics about your business and your long-term goals, presenting a range of funding options tailored to your needs.

Then, we’ll help narrow the list down to your preferred business loan lenders, identifying your ideal terms of repayment length, interest rates and collateral (if required).

We’ll take care of the legwork to help you find your ideal funder.

We’ll always provide the best and most reliable advice available, with guidance on the best option available for you – but it helps if you have an understanding of your ideal terms, too!

Finding the perfect business loan for you and your business

Come to us to obtain the ultimate loan to supercharge your business’ growth. When you choose Anglo, we’ll make it easy to find the right lender and the right lending terms.

And, with a unique portfolio of more than 70 funders, we can connect you with a wider range of lending terms than traditional banking institutions, while being FCA-authorised as a reliable lender.

We also have a track record delivering loan solutions tailored to businesses in a range of specialised sectors, like renewables and agriculture.

Alternatives to business loans

There are a number of other commercial alternatives to a business loan that could support start-ups or more established businesses. Each of these methods allow your business to access external means of funding, or explore new lines of credit to support a more consistent cash flow.

Business credit cards could give your business the ability to spread the repayment schedule of larger purchases. Facilities such as a business overdraft could also give your business the opportunity to spend outside of your means for an agreed-upon period, knowing that you will have enough money in the future to pay off the overdraft.

If your business commonly takes payment via a card provider, it can take a little while to get the funding you need. Merchant Card Advances can be used to help bridge this gap, combating any inconsistent cash flow issues you might have.

Contact us to apply for a business loan today

We’re on hand to help you apply for a business loan.

Contact our friendly team of experts via email or phone for a quick, easy, zero-obligation chat.