Business loans and small business loans and finance for commercial business and small business in the UK
The versatility of business loans makes them the first choice finance solution to meet the funding needs of many companies. Business loans provide capital to the business which can be used for almost any purpose including starting or expanding a business, purchasing machinery or other assets, refinancing equipment, rearranging debt or restructuring the balance sheet.
Searching out and agreeing business loans can be a daunting and time consuming task, involving a great deal of investigation to identify the right loan provider for your particular business circumstances. Allow Murray Commercial Finance to do the initial leg work for you, sourcing the most suitable business loan lenders without obligation and obtaining business loans proposals tailored to your business circumstances.
Business loans can provide increased funds for your business and have some excellent benefits.
Retaining ownership – Business loans do not involve you losing ownership or control or your company as you are not selling shares or an interest in your concern to an investor in return for finance.
Maintaining profits – The loan provider to your business gets a return on its loan in the form of interest charges and repayment of the capital advanced. You retain all the profits in your company.
Minimising initial payments – Business loans are an injection of funds into your business. As opposed to using your own capital to fund development or the acquisition of assets, which drains business liquidity, loans repayments are spread across a period of time without large up-front costs.
Flexible repayments – Most business loans will allow you to match your business cash flow to a repayment schedule. The injection of the loan capital will allow you to expand, improve the cash position of the business and marry this with scheduled loan repayments.
Tax efficient – You make loan interest repayments with pre-tax money and if the loan is used to purchase an asset, then writing down allowances are claimable against tax. Using profits in the business for major purchases is always after tax has been deducted although writing down allowances remain claimable.
Predictable cash – Because you make your loan repayments to a timetable, projecting cash flow becomes more reliable, helping you to manage cash accurately.
Complete the Quick Enquiry Form now, inviting Murray Commercial Finance to obtain business loans proposals from suitable financial sources. You should also think about discussing your plans with your financial and legal advisers and consider the following:
- Lenders will look for some form of security to support their lending, and this may include some form of charge on personal assets as well as company assets.
- Normally 3 years of financial records (profit and loss, balance sheets, cash flows) will be required along with a business plan and projections forward for a minimum of the following 2 years in support of the loan application.
- The borrower will have their financial/credit worthiness checked out, the outcome of which will have a bearing on the interest rates to be charged on the loan and in cases of adverse credit history the requirement for additional security to protect the lender against the higher levels of risk.
- You, as the borrower, will have to decide between fixed and variable interest rates being applied to the loan principal.
- Your choice of repayment schedule will involve choosing between various types of repayment of the capital and interest, although the longer you keep an outstanding balance of principal the more costly the overall loan will become.
- Repayment schedules involving forms of final balloon payments, will seem attractive because of the lower front-end costs, but will place the onus on you, the borrower, clearing a large element of principal in a single payment at the end of the loan term.