Business loans provide you with the additional funds required to grow your business. They can be taken out on a short term or long term basis with interest rates and monthly payments fixed for the duration of the term. There are two types of business loan:

Unsecured – with no security required, interest rates for this option can be higher, however, you don’t have the risk of your assets being repossessed. This type of loan is suitable for medium to long term plans.

Secured – company assets are used to secure this type of loan, therefore, interest rates are lower. The amount you can borrow is dependent on the value of your asset(s). 

Things you need to consider with business loans:

• Some providers will only lend to limited companies
• Your business usually needs to be VAT registered
• A minimum monthly turnover may be required