Finding Small Business Loans UK

Almost every business will, at some time, have a need to borrow money. It might be for extra working capital to help with cash flow. They might have plans to invest in new products or new plant to grow or sustain the business.

If you’re wondering how to find small business loans UK banks and other lenders will be happy to tell you about their range of finance products.

However, before you talk to specific lenders you should decide for yourself what benefits your business is looking for. This will help you to decide which method of borrowing is the right one for your business.

The benefits that organisations usually look for from a loan are:

• Flexibility in the amount they can borrow.
• Inexpensive charges and a low rate of interest.
• Small amount of administration to set up and operate.
• A minimal amount of security.

Small Business Loans UK Example – Invoice Factoring

Invoice factoring is one example of the small business loans UK organisations can use. It’s a way of borrowing money that releases cash that’s tied up in your business’ sales ledger.

Businesses that issue sales invoices to customers can wait up to 90 days before being paid. Factoring gets rids of this wait, because the lender pays up to 90% of the invoice value within a day or so of it being issued.

One of the great benefits of this way of lending is that there’s no need for security. The lender receives their payment directly from the customer, and when that happens, the outstanding balance is passed to you – less any charges. Factoring can be operated confidentially, meaning your customer is not aware of it.

Another major advantage of factoring is that the lender manages your credit control. They take on the administration of statements and chasing for payment. This can be a huge benefit to a small business, where resources are scarce. The time saved can be used for further business development.

Factoring is an extremely flexible type of business loan. You borrow what you need, and the total available is limited only by the amount that you invoice.

Find out how much you could release from your sales ledger instantly online >>

How Can Touch Financial Help?

You need impartial advice about the small business loans UK organisations can access. Because we’re independently owned we focus entirely on finding the loan that’s right for you.

We work with over 20 of the UK’s top lenders, including the Bank of Scotland and Bibby Financial Services. Because we’re the leading online commercial finance broker we have access to exclusive rates and offers.

Thousands of UK organisations have taken advantage of our expertise to find the right finance solution. Could you join them? Give us a call today.

Compare factoring quotes instantly online >>

Also in this section:

• Guide to arranging a small business loan
• An alternative to small business loans
• Finding Small Business Loans UK
• Flexible Business Loan - Boost Your Working Capital