What is a business loan?
There are two types of business loan – one which is secured, and one which isn’t (known as unsecured).
A secured loan is usually secured (backed) by a tangible asset, for example a property or a piece of equipment. Unsecured loans are more risky for a lender as there is no security so these will be more expensive and will often require a Personal Guarantee.
How does a business loan work?
Similar to most forms of finance, you receive a set amount, which you agree to pay back over a specified term.
What are the benefits to business loans?
- As can been in how it works – it’s quite simple and straightforward
- Dependent upon your terms, you can often pay it off early without repayment
- Can be turned into cash quickly – often within 24/48 hours