Funding your Business Guide

other platforms where you could look at personal loans. You could take out a personal loan for the purchase of a vehicle which could then in part be used for business travel. However, banks and lenders want to know what the reason for the loan is. So, if it’s for your business then you need to apply for a loan for that reason. Generally personal loans for businesses are set at a maximum of £30,000. A wide range of lenders will offer you suitable terms and rates, but these may be higher than business loans set out below. Applying for a personal loan for your business may be a quicker process than applying for a business loan and if your credit is good, could be deposited to you relatively quickly. The downside is that unlike a business loan, personal loans don’t come with additional support. www.merchantsavvy.co.uk/business-loans/unsecured business-loans www.oceanfinance.co.uk/loans/self-employed-loans Business Loans There are a wide range of financial institutions that will offer you some form of loan agreement to start your business.

Loans can range from £5,000 to £250,000 and higher. Some loans may require you to have been trading for a period or have turnover exceeding a certain amount. Loans can be unsecured or secured against some asset of the business. There are plenty of compare the market sites where you can look at various terms and rates. If you are a small business and do not have much trading history, you may prefer a personal loan such as the government scheme on page six. A business loan will get you a lot more money than a personal loan and can build credit history for your business. When deciding on a lender consider the rates, fees, early repayment penalties, lending limits, services offered and additional support for your business. Companies that offer such arrangements included Cube Funder, Funding Circle and Funding Options. Links www.money.co.uk/business-loans/start-up-business-loan www.fundingoptions.com/business-loan-calculator/ Equity Financing Giving up equity in your business to an angel investor may not be everyone’s cup of tea but it could be a sure way to