Tag: Secured

Secured Business Loans – UK SME Lending #printing #business #cards

#secured business loans

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Secured Business Loans: The Essentials

Find out if a secured loan is right for your business.

Are you about to launch a new venture? Or perhaps you’re planning ahead for a seasonal dip in income and want to boost cash flow. Maybe you’re expanding and need bigger premises, new equipment and more staff.

Launching or growing a business inevitably involves investing money. An injection of capital can give you the stability and freedom to get things off the ground or take your enterprise to the next level. This is where small business loans come in – when you find the right lender, the funds can be a lifeline.

Focus on alternative finance

The options are numerous – which is great news for all smaller ventures – but identifying the loan that best suits your business is essential to securing funding in the first place, not to mention having a loan that’s affordable.

Lenders apply their own criteria, payment terms, interest rates, and requirements for collateral as security (more about that in a moment). It’s worth focusing on lenders in the mushrooming alternative finance sector, whose terms tend to be more flexible and suited to SMEs.

Secured or unsecured loans?

First, let’s look at the basic differences between secured and unsecured business loans.

You can typically borrow more with a secured loan than with an unsecured loan – some lenders offer in excess of £1 million in fact. Secured loans generally offer lower interest rates too.

One point worth mentioning is that because you can borrow larger amounts with secured loans, lenders need to reduce their risk by asking you for security on the loan. So they’re likely to ask you to provide collateral as security against the loan. Then, if you default, the lender has a higher chance of recovering the money you owe.

Think of it like a pawn shop: you provide an item to the lender who evaluates the asset and decides how much you can borrow based on its value. It may be a simplified comparison, but it illustrates the basic idea.

Company collateral as security

When businesses apply for large loans, they’re likely to be asked to pledge company collateral as security. What lenders want as assurance varies, but you should expect to pledge assets such as the following:

  • Commercial property
  • Land
  • Vehicles
  • Equipment
  • Fittings and fixtures
  • Or, instead of individual assets, some lenders request the net worth of all assets

The value of your assets must be sufficient for a lender to justify giving you the loan.

Personal guarantees

As well as providing company collateral, you may be asked to give a personal guarantee as additional assurance for the lender, making individuals liable for the loan. Lenders’ requirements vary but often depend on your company status – we explain more below:

If you’re a limited company or LLP

  • If you have a limited company or limited liability partnership (LLP), the majority of lenders will expect you to provide a personal guarantee alongside company collateral.
  • Directors or shareholders with a minimum of around 20% to 25% share in a limited company are also likely to be asked to provide a personal guarantee.

If you’re a sole trader or partnership

  • When it comes to sole traders and partnerships with unlimited liability (not LLPs), the rules are different when it comes to any kind of loan: you’re always personally liable. and, as a result, you won’t be asked to put up any company collateral.

Since each lender has a different approach to decision-making, always look closelyat lenders’ terms.

Another point to highlight: if you refuse to provide a personal guarantee this could reflect badly on your application – and your intention to pay back the money. So regardless of whether you’re a sole trader, a partnership, a limited company or LLP, be prepared to provide a guarantee such as residential property or valuables such as jewellery.

Secured loans = flexible terms

In return for security, lenders can be more flexible with their terms, giving borrowers competitive interest rates and long repayment periods – anything between 2 and 10 years.

On the other hand, if you’re a shoestring startup or a new business yet to build up valuable assets, you might not have enough collateral to put up for a large loan. If this sounds like you, then an unsecured loan could work better for you – but you still need to weigh up the pros and cons.

Whatever you do, choose your small business loan wisely, and you must be confident that you can pay back the loan or you may risk losing the company and personal assets.

Your first step on the road to funding

Since lenders have their own criteria and meticulous assessments, it’s worth talking to them directly. In fact, a chat with one of the experienced relationship managers at Fleximize is a great place to start. As innovators in lending to SMEs, our team understands the demands of small business finance, and the significance of such a serious financial commitment. Call us on 020 7100 0110.





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Secured Business Loans – UK SME Lending #stock #market #quotes

#secured business loans

#

Secured Business Loans: The Essentials

Find out if a secured loan is right for your business.

Are you about to launch a new venture? Or perhaps you’re planning ahead for a seasonal dip in income and want to boost cash flow. Maybe you’re expanding and need bigger premises, new equipment and more staff.

Launching or growing a business inevitably involves investing money. An injection of capital can give you the stability and freedom to get things off the ground or take your enterprise to the next level. This is where small business loans come in – when you find the right lender, the funds can be a lifeline.

Focus on alternative finance

The options are numerous – which is great news for all smaller ventures – but identifying the loan that best suits your business is essential to securing funding in the first place, not to mention having a loan that’s affordable.

Lenders apply their own criteria, payment terms, interest rates, and requirements for collateral as security (more about that in a moment). It’s worth focusing on lenders in the mushrooming alternative finance sector, whose terms tend to be more flexible and suited to SMEs.

Secured or unsecured loans?

First, let’s look at the basic differences between secured and unsecured business loans.

You can typically borrow more with a secured loan than with an unsecured loan – some lenders offer in excess of £1 million in fact. Secured loans generally offer lower interest rates too.

One point worth mentioning is that because you can borrow larger amounts with secured loans, lenders need to reduce their risk by asking you for security on the loan. So they’re likely to ask you to provide collateral as security against the loan. Then, if you default, the lender has a higher chance of recovering the money you owe.

Think of it like a pawn shop: you provide an item to the lender who evaluates the asset and decides how much you can borrow based on its value. It may be a simplified comparison, but it illustrates the basic idea.

Company collateral as security

When businesses apply for large loans, they’re likely to be asked to pledge company collateral as security. What lenders want as assurance varies, but you should expect to pledge assets such as the following:

  • Commercial property
  • Land
  • Vehicles
  • Equipment
  • Fittings and fixtures
  • Or, instead of individual assets, some lenders request the net worth of all assets

The value of your assets must be sufficient for a lender to justify giving you the loan.

Personal guarantees

As well as providing company collateral, you may be asked to give a personal guarantee as additional assurance for the lender, making individuals liable for the loan. Lenders’ requirements vary but often depend on your company status – we explain more below:

If you’re a limited company or LLP

  • If you have a limited company or limited liability partnership (LLP), the majority of lenders will expect you to provide a personal guarantee alongside company collateral.
  • Directors or shareholders with a minimum of around 20% to 25% share in a limited company are also likely to be asked to provide a personal guarantee.

If you’re a sole trader or partnership

  • When it comes to sole traders and partnerships with unlimited liability (not LLPs), the rules are different when it comes to any kind of loan: you’re always personally liable. and, as a result, you won’t be asked to put up any company collateral.

Since each lender has a different approach to decision-making, always look closelyat lenders’ terms.

Another point to highlight: if you refuse to provide a personal guarantee this could reflect badly on your application – and your intention to pay back the money. So regardless of whether you’re a sole trader, a partnership, a limited company or LLP, be prepared to provide a guarantee such as residential property or valuables such as jewellery.

Secured loans = flexible terms

In return for security, lenders can be more flexible with their terms, giving borrowers competitive interest rates and long repayment periods – anything between 2 and 10 years.

On the other hand, if you’re a shoestring startup or a new business yet to build up valuable assets, you might not have enough collateral to put up for a large loan. If this sounds like you, then an unsecured loan could work better for you – but you still need to weigh up the pros and cons.

Whatever you do, choose your small business loan wisely, and you must be confident that you can pay back the loan or you may risk losing the company and personal assets.

Your first step on the road to funding

Since lenders have their own criteria and meticulous assessments, it’s worth talking to them directly. In fact, a chat with one of the experienced relationship managers at Fleximize is a great place to start. As innovators in lending to SMEs, our team understands the demands of small business finance, and the significance of such a serious financial commitment. Call us on 020 7100 0110.





Tags : , , , , , ,

Secured Business Loans #quality #business #cards

#secured business loans

#

Secured Business Loans

The growth and success of most businesses often requires access to additional funds. If your small business is in need of extra money, secured loans can be the key to overcoming challenges or taking advantage of available opportunities.

What are Secured Business Loans?

Secured loans are typically offered by financial institutions to business owners who require capital to start a new business, expand an existing one or pay for business-related expenses. This loan requires upfront collateral which reduces risk for the lender, allowing them provide a lower interest rate that can be paid back more easily by the borrower.

What Companies Utilize Secured Small Business Loans?

All types of small businesses could benefit greatly from this type of loan, however, companies that have mutual funds, vehicles, inventory. equipment, accounts receivable. land, buildings or other property to put up as collateral will have significantly lower payments and significantly longer repayment periods as compared to unsecured, collateral-free loans.

How Can I Acquire Secured Business Loans?

Utilizing a secured business loan is a great way to ensure a lower interest rate, a longer repayment period, and the opportunity to build credit and forge a relationship between business and credit provider. National Business Capital strives to understand each business’ unique history, present position and future needs to provide the best financial assistance possible. National Business Capital’s 90% approval rates, zero upfront fees and years of experience providing honest, professional financing advice is on your side. Take advantage of expansion opportunities, amass seasonal inventory, and engage in lucrative marketing initiatives with secured small business loans .

For more information about secured business loans, our 24 hour response time or flexible credit services, please give us a call at (877) 482-3008. To apply via our easy 2 minute application, click here.

We Finance Your Journey

Our approval process takes less than 24 hours.





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