Small business loans

Borrow from £25,500 with flexible repayments. Our small business loans can be used for buying new inventory, advancing your expansion plans, or just keeping your cash flow stable.

How do our small business loans work?

1. Apply

It only takes five minutes from beginning to end. Our small business loans are created for small companies, so we’ll only need the fundamentals to make a choice.

2. Use your funds.

We will approve you depending on your business performance. You then transfer as much money as you need to the account you have with the bank; the cash typically arrives within hours.

3. Repay your loan.

We do not charge early repayment penalties; we simply charge interest on the days you hold the money.

How do I apply for a small business loan?

Step 1: Enter the amount you want to receive and provide your business email address. We will use it to set up your account as well as provide loan application information.

Step 2: Answer a few queries about yourself and the business you run (starting date, annual revenue, etc.). This will take about five minutes.

Step 3: You’re all set. We’ll conduct a credit check using the information you supplied to determine our judgement. The length of time required for us to make a decision may differ based on the amount you request.

What are the conditions for applying for a small company loan?

We are willing to examine a wide range of enterprises, from fresh startups to established businesses. However, you must have a UK-based business that operates as a limited company or partnership. 

How long will I have to repay?

Our maximum duration is 12 months, but you can repay sooner if you do not require the funds for that long. We only charge interest on the days you have the cash, so making early repayments is an excellent method to lower the overall amount of interest you’ll pay.

If I apply for a small company loan, am I obligated to take the funds?

No. Getting a quote is free, and you can decide whether or not to proceed once you are given an offer. Even if you are interested in repaying early, you can do so without incurring any additional fees; you will just pay interest while you have the funds.

Can I get a new loan once my first one runs out?

Of course. We will extend your offer once your loan has expired, provided that your circumstances have not altered. If your firm has developed, we may be able to raise your credit limit or lower your interest rate.

Can I obtain a business loan to purchase a company?

If you don’t already own a company, you’re unlikely to be able to obtain a small business loan to buy one. If you’re the owner of a company seeking to purchase another business, some lenders may be willing to lend to you if you can demonstrate that purchasing the business will not jeopardise your capacity to return the funds.

Some lenders will also let a business owner take out an unsecured loan to assist with paying off a co-owner. Such lenders may require a Share Purchase Agreement (SPA) to verify your commitment to the transaction. If you are unsure, contact your desired lender directly to ask what conditions they are willing to handle.

What is considered a good credit score for obtaining a small business loan?

Unfortunately, your credit score is typically insufficient to assess whether you qualify for a business loan. Most lenders examine a variety of variables like creditworthiness and interest rates.

The most important thing to know is whether your business is successful. This includes determining whether it has defaulted on debt, has any unpaid County Court Judgements (CCJs), and has a strong client base with consistent revenue.

Do I need insurance for a small business loan?

Although business loan insurance is not required by law, most business owners consider it to provide comfort. If the business owner passes away or gets very ill, any unpaid loans may have a substantial impact on the company and its employees.

Some insurance companies provide a one-time payment if a director passes away or becomes extremely ill. The insurance lump pay-out is normally equal to the loan’s outstanding balance. In exchange, you will be required to pay recurring premium payments to the insurance provider.

Whether or not you take out small company loan insurance is totally up to you; however, because it is a recurring cost, most owners will consult with their fellow business directors before doing so.

Is a small business loan secured or unsecured?

A large percentage of small business loans are unsecured because, as a small business, you might not have sufficient collateral to provide the lender as protection against non-payment.

However, there are a few secured business loan providers, so it’s crucial that you evaluate your possibilities.

When should I start repaying my small business loan?

The minimal repayments must be made every week or every month, contingent upon the repayment plan that you agreed to when seeking cash. With a monthly repayment plan, you repay your first month thirty days after drawing down.

How much is a small company loan?

The price of a small company loan in the UK varies greatly depending on the type of loan, loan amount, term duration, and interest rate.

How can I acquire a small company loan with adverse credit?

Obtaining a small company loan with negative credit might be difficult, but not unattainable. Here is how you can increase your chances:

• Learn the factors that influence your credit score: Before seeking a loan, examine your credit score and the factors that contributed to it. This information will assist you in planning how you’re going to improve it.
• Improve your company’s financials: demonstrating that your organisation is successful or improving its financial health can make your loan application much more appealing.
• Consider alternative lenders: If traditional financial institutions, such as banks, have rejected you, look into alternative lenders. They frequently have more flexible requirements and are more willing to engage with enterprises with low credit.
• Provide collateral: If you have assets that can be used as collateral, this might boost your probability of getting a loan.
• Seek a co-signer: If you are able to find somebody with a good credit score to co-sign the loan, lenders will be more likely to accept your loan request. However, this is problematic because the co-signer is also liable for repaying the debt.

Remember that getting a loan with negative credit may come with higher interest rates. To minimise more financial burden, thoroughly consider your options.

What are the documents required for a small company loan?

The application procedure will vary greatly depending on the lender. Here at bridgingloans.co.uk we require the following:

• Proof of ID
• Proof of address
• Bank statements.
• Proof of income

How do I secure a small company loan without collateral?

That’s a fantastic question, and the answer is simple: look for unsecured business loans.