Business Loans Explained

There are a variety of ways to obtain a business loan and the best way forward is to use a financial adviser to get the best possible deal, normally through second tier banks that specialise in this type of lending.

A comprehensive business plan is absolutely critical. Have this checked by your accountant with regards to financial predictions and forecasts.

If you are getting the loan to buy an existing business, you will need detailed accounts for at least the last 2 previous years of its operations.

As with any loan, it is all about accessing the “risk” the lender is prepared to take. The higher the risk, the higher the interest rate charged. If the lender feels the risk is too great they will decline the application completely.

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Therefore consider using your own personal assets to secure the loan. A secured loan will have a lower interest rate compared to an unsecured loan.