Welcome to Inloanc
Empowering Your Business with Tailored Loan Solutions
With such a wide range of business loans and alternative finance products designed to manage cash flow, investment and growth projects it’s hard to know where to start when it comes to applying for a business loan. There are also different lenders on the market from high-street banks, challenger banks, an independent bank or a niche alternative finance provider. We know that it can be a task choosing a lender and product to suit your business needs.
Our Business Loan Services
Small Business Loans
Commercial Real Estate Loans
Equipment Financing
Working Capital Loans
Trade Finance Solutions
Why Choose Inloanc?
- Expertise in Financial Facilitation:
- Extensive Network:
- Customized Solutions:
- Efficient Process:
- Dedicated Support:
How do business loans work?
A business loan is a sum of money that the lender provides and the borrower pays back, plus interest, over a set period of time. Some lenders may even charge your business if you decide to pay your loan amount off early, so it’s always important to read the terms and conditions of your loan. You can even apply for a business loan online via our Funding Cloud platform. However you choose to apply, lenders will just need specific documentation in order to carry out checks and make a decision on if they can offer your business funding. Alternative lenders are making it easier and quicker for businesses to access the funding they need to trade, plan and grow than ever before. Your business may also be eligible for an unsecured business loan, meaning you won’t have to provide assets or property as security. Other options to consider include business credit cards and bridging loans which are short-term business loans designed to get your business from A to B quickly. Your business loans’ interest rate will depend on how ‘risky’ the lender deems you when it comes to advancing you the money. If your loan has a fixed interest rate, the rate remains the same meaning you’ll pay a set amount of interest for the term of the loan. Floating rates, on the other hand, change in line with the lender’s interest rate as well as the rate the Bank of England sets. With so many products and providers, the eligibility criteria, interest rates, and overall costs can vary significantly. Let’s take a look at everything you need to know about business loans.
How do business loans work?
With so many different lenders and products on the market, the eligibility criteria for business loans vary. In an initial consultation, expect to be asked about:
Turnover and profit
Bank statements
Filed accounts
Loan amount vs. turnover
Trading history
Payment history (e.g. CCJs, late payments)
While there are no set ‘standard’ criteria for business loans, there are a few basic factors that most lenders look at when assessing your business. Here are a few rules of thumb to bear in mind before you apply for a loan:
The loan amount is less than 25% of your annual turnover
Your business is profitable
More than 24 months trading history (for most products)
No outstanding CCJs or late payments
Your business is based in the UK
Generally, lenders are unwilling to lend more than 10-20% of your annual turnover, and they’ll want to see enough revenue to demonstrate affordability. If you’re not making much profit or making a loss, it’ll be difficult to get a loan, and a short trading history (less than 2 years) can make things more difficult too.
Although it might seem difficult, you’ll be surprised at what’s still available to your business, as many of the lenders we work with are more flexible than traditional banks. You can use a variety of assets as security for a secured business loan, including commercial property, plant and machinery, vehicles, and stock. Lenders have different criteria for what they’ll accept as assets.
On the other hand, unsecured loans don’t require physical security but will often require a personal guarantee. Usually, lenders will want the guarantor to have a good personal net worth and be a UK homeowner, who can demonstrate their eligibility.
Our guide to secured vs. unsecured loans covers all you’ll need to know before applying for these types of funding
How fast business loans help businesses
Fast business loans can really help businesses with short term cash flow problems or stock issues, as they can usually be arranged on the same day. They’re often a quick solution for SMEs when it comes to plugging a financial gap and as they’re usually unsecured loans so you won’t need to worry about having assets to offer the lender.
However, the convenience of speed comes with a cost – fast loans can have higher interest rates and competitive payback terms, so it’s worth considering the terms and weighing up all of your available options before committing.