As important as they are diverse, business loans are specifically designed to support companies and businesses looking to take on short and long-term debt for immediate liquidity. Available from a range of sources, business loans are often an essential part of completing key strategic objectives – whether it is asset acquisition, infrastructure change, financing assistance, or more.

Relatively straightforward to apply for, any loan can be sought from a bank or an independent lender. Of course, due caution needs to be applied by both parties and it is vitally important for your company to apply due diligence to your chosen lender. In turn, they will carry out a check into your credit history and determine what packages they are willing to offer.

Applying for a business loan is multi-step process and many businesses find themselves falling at the first hurdle due to a less than ideal credit history or a growing reluctance to loan to SME’s or fledgling entrepreneurs. This makes it essential to understand what kinds of loans are available to you and where to turn to get the best deal possible.

What are secured and unsecured Business Loans?

When it comes to applying for any loan you will be required to chose from secured and unsecured options.

Secured loans are set against a fixed asset that will be taken as collateral if you default or run into issues. This is commonly a property that the individual taking out the loan will own, or a car, stock, or key business assets.

Conversely, unsecured business loans are not set against any asset. While these offer you greater safety, they will commonly require a higher rate of interest from the provider – making it a potentially helpful option for those operating in certain sectors.

However, both options will be set against your credit score. If this is poor, you can quickly find yourself shuttered out from some of the more attractive options, severely limiting your choices.

If you are suffering from bad credit, it is potentially worth approaching a provider that specialises in obtaining unsecured business finance for organisations in your position. Any provider will be able to provide guidance and best-practice advice to ensure that you are in the best position possible.

How to get a start-up business loan?

One of the most challenging loans to secure, start-up loans are specifically offered to help new companies hit the ground running. Available from a range of online providers and certain banks, these are small loans with a fixed repayment term

If you are considering a start up loan it is vitally important that you have comprehensive information about the options on the market. Seeking out a reliable financial advisor can provide help getting a small business loan and ensure that you not only get the best deal but the right financial product for your business case

What next?

If you want further support with your loan application, our team at Capital Raise is here to help. With extensive professional experience operating in the sector, our team will work with you to streamline the applications process and ensure that you get the right product or unsecured small business loan for your needs.

If you want to learn more, you can review our list of services in full from here. Or if you have any additional questions or queries about how to take out a business loan, please do not hesitate to get in touch and let us know what obstacles stand in the way of you and your choice of business loan, and we will do our best to help.