WHAT IS A BUSINESS LOAN?

A business loan provides a lump sum of funding for costs that don’t fit neatly into asset finance or a line of credit – things like business expansion, renovating premises, purchasing stock, covering a one-off contract cost or other significant expenses that aren’t tied to a specific piece of equipment or vehicle.

Unlike a line of credit, which gives you ongoing, revolving access to funds for managing day-to-day cash flow as it fluctuates, a business loan is a defined amount borrowed repaid over a set term with fixed instalments. And unlike asset finance, it isn’t secured against a particular asset, which gives you the flexibility to use the funds wherever your business needs them most.

Approval is typically based on your business’s trading history and overall financial position, and depending on your circumstances, may be secured or unsecured.