Business
loans
what is a business loans
A business loan gives you access to funding that can be used for almost any legitimate business purpose. Unlike asset finance, which is linked to a specific purchase, a business loan provides capital that can be used more flexibly.
Business loans can be arranged on either a secured or unsecured basis, depending on your requirements and your business profile. The right option will depend on how much you need, how long you need it for and what security, if any, is available.
Why do businesses use business loans?
Business loans are often used when companies need straightforward access to capital without tying the borrowing to a specific asset.
- You might be:
- Expanding into new premises
- Investing in stock ahead of a busy period
- Hiring new staff or funding a marketing push
- In need of working capital to support growth
- Simply looking for some breathing space
One of the key benefits of a business loan is flexibility. The funds can be used for almost any business purpose, provided it is legitimate and commercially sound.
Business loans are relevant to both start-ups and established companies. A new business with strong projections and director backing can often be considered. Established businesses with trading history may also access larger amounts or longer repayment periods depending on performance.
Secured vs unsecured options
Secured loans
Are backed by an asset such as property or other security. As the lender has this added protection, they can often offer longer repayment periods and larger amounts.
Terms for secured loans can range from 12 months up to 300 months, depending on the security provided.
Unsecured loans
Do not require specific asset security. They are typically available over shorter terms, usually between 12 and 60 months. As there is no security backing the loan, the amounts may be lower, and interest rates can reflect the additional risk to the lender.
Approval is based primarily on business performance and your credit profile. Longer terms can reduce monthly repayments and improve cashflow, making secured lending attractive for larger investments or long-term plans.
The right choice depends on your business position, your appetite for security and your growth objectives.
What do lenders look for?
Lenders will typically assess:
- Trading history or projected income (for start-ups)
- Profitability and affordability
- Director credit profile
- Security available, if applying for secured lending
If you have been declined before, that does not mean you’ll be declined again – all lenders will see your application differently.
Different lenders have different criteria and difference risk appetites.
Why Meridan Finance
Choosing the right type of loan and matching it to the right lender makes a significant difference.
When you work with Meridan Finance, you work with a commercial finance specialist who takes the time to understand your situation properly. We assess whether
secured or unsecured lending makes more sense and present your application to lenders who are clearly aligned with your business profile.
If you need funding and are unsure whether a secured or unsecured loan is right for you, give us a call now to explore your options.
Built on relationships. Backed by results.
Choose Meridan Finance.