Frequently Asked Questions
Business Loan Broker (UK)
What does a business loan broker do?
A business loan broker helps you find the most suitable finance options by comparing lenders, preparing applications, and guiding you through the process.
How can a loan broker help my business secure funding?
They match your business with lenders who best fit your needs, improving approval chances and saving time.
What information do I need to apply for a business loan?
Typically you’ll need bank statements, trading history, ID documents, and details about your business.
How long does it take to get business finance approved?
Approval can take anywhere from a few hours to several weeks, depending on the type of finance.
Will applying for finance affect my credit score?
Most lenders perform a soft search initially, which does not affect your score. A hard search may occur at the final stage.
Do I need to be a limited company to apply for business funding?
No. Sole traders, partnerships, and limited companies can all apply.
Can start-ups apply for business loans?
Yes, but options may be more limited without trading history.
What’s the difference between a secured and unsecured business loan?
Secured loans require collateral; unsecured loans do not and rely more heavily on creditworthiness.
How much can I borrow for my business?
Loan sizes typically range from £5,000 to several million, depending on the loan type and your business profile.
What interest rates can I expect on business loans?
Rates vary based on credit, loan type, and lender, typically starting from around 4–6% for secured loans and higher for unsecured.
What are the typical repayment terms for business loans?
Terms range from 3 months to 10 years, depending on the product.
Can I repay a loan early without penalties?
Some lenders allow early repayment with no fee, while others charge settlement costs.
How do I know which type of finance is best for my business?
A broker will assess your needs, financial position, and goals to recommend the right option.
What industries do you provide funding for?
We work with most industries including retail, construction, hospitality, logistics, and professional services.
Do you work with businesses that have bad credit?
Yes. There are lenders who offer solutions for businesses with imperfect credit history.
Secured Loans
What is a secured business loan?
A secured loan is backed by an asset such as property or equipment.
What assets can be used as security?
Common assets include property, vehicles, machinery, and commercial equipment.
Are secured loans easier to get approved for than unsecured loans?
Generally yes, as the lender’s risk is lower.
What happens if I default on a secured loan?
The lender may take possession of the asset used as security.
How long does it take to get a secured loan approved?
Approval often takes longer—typically 1 to 4 weeks—due to valuation and legal checks.
Unsecured Loans
What is an unsecured business loan?
An unsecured loan requires no collateral and is based on creditworthiness.
Do I need a personal guarantee for an unsecured business loan?
Most unsecured lenders require a personal guarantee.
How much can I borrow without security?
Unsecured loans typically range from £5,000 to £500,000.
What are the main advantages of an unsecured loan?
Fast approval, no collateral, and flexible use of funds.
What are the eligibility criteria for unsecured finance?
Lenders usually require trading history, good bank health, and a stable cash flow.
Bridging Loans
What is a bridging loan used for in business?
It provides short-term funding to “bridge” a gap until long-term finance is available.
How quickly can a bridging loan be arranged?
Often within days, sometimes within 48 hours.
What is the typical term of a bridging loan?
Usually 1 to 24 months.
Can a bridging loan be used to purchase commercial property?
Yes, it’s commonly used for property purchases, auctions, and investment projects.
Do bridging loans require security?
Yes, they are secured against property or land.
Acquisition Finance
What is acquisition finance?
Funding used to purchase another business or take over shares.
Can I use acquisition finance to buy another business?
Yes, this is exactly what the product is designed for.
How much deposit is required for acquisition finance?
Typically 10–30% depending on risk and lender.
Can acquisition finance be combined with other funding types?
Yes, it can be blended with asset finance, invoice finance, or loans.
What documents are needed for acquisition finance?
You’ll usually need business accounts, forecasts, bank statements, and details of the target business.
Asset Finance
What is asset finance?
Finance used to purchase or refinance equipment, vehicles, or machinery.
What types of assets can be financed?
Vehicles, construction machinery, manufacturing equipment, and more.
Can I refinance existing equipment?
Yes, many businesses release capital through refinancing assets they already own.
Is asset finance available for vehicles and machinery?
Yes, it’s commonly used for cars, vans, HGVs, and plant equipment.
What happens at the end of an asset finance agreement?
Depending on the product, you may own the asset, return it, or upgrade it.
Merchant Cash Advance
What is a merchant cash advance?
A form of funding repaid through a percentage of daily card sales.
How are repayments made?
Repayments automatically adjust with your card sales—busy days pay more, quiet days less.
Invoice Financing
What is invoice financing?
It allows you to release cash tied up in unpaid invoices.
What’s the difference between factoring and discounting?
Factoring involves the lender managing your credit control; discounting keeps this in-house.
How quickly can I access funds through invoice financing?
Funds can usually be accessed within 24 hours of invoice submission.