What's different about a Spotcap business loan?
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Access to small business loans in the UK
Information you need to know as a business owner
Is a small business loan from Spotcap right for me?
Save yourself valuable time, avoid the hassle of giving security and minimise the cost of borrowing. Our unique risk assessment and credit scoring system look at your current business performance, meaning we can offer unsecured loans to firms that qualify.
Whether you’re embarking on a business expansion project, or looking to address a cash flow shortfall, a small business loan from Spotcap could be the best funding solution choice.
A loan with us could be the answer if:
- You have a clear idea of the loan’s purpose.
- Repayment terms of up to 15 months are appropriate.
- You want the flexibility to repay early with no penalty.
Of all forms of funding help for small businesses, the traditional business loan remains one of the most popular.
How much collateral is required for a small business loan?
- When businesses apply for loans, the lender may ask for security or collateral in case the borrower can’t repay. Traditional lenders, like banks and credit unions, tend to ask for some collateral against their loan, such as real estate or inventory. Other lenders, like alternative finance providers, offer finance that isn’t attached to collateral. Interest rates with these lenders can be higher than with traditional lenders.
- Financial products like unsecured business loans and an unsecured line of credit are based solely upon a business’s creditworthiness, history and financial condition. These solutions don’t require collateral or personal guarantees, making them appealing to healthy small and medium sized businesses that want fast access to finance.
What questions will I be asked when I apply for a loan?
- When it comes to obtaining a small business loan, it helps to think of yourself as a lender. If you were them, what would you like to know about the business you’re lending to? What would make you feel positive about lending them money?
- Requirements vary between lenders, but expect some questions about your business’s performance and financial projections, as well as what you intend to do with the loan. A lender may ask to see historical financial documents and accounting information, as well as your budget. How a lender obtains and processes this information – and the speed in which they do it – depends on the their approach.
Why do small businesses need access to finance?
- In the wake of the 2007 financial crisis, small businesses suffered a drop in demand for goods and services and a squeeze in access to credit. Banks tightened their lending practices to SMEs drastically. This is problematic, as access to finance is at the core of the creation, survival and continued growth of small and mid-sized businesses. Fortunately, due to economic recovery and the advent of alternative lenders, SMEs are enjoying greater access to finance.
- Sometimes, SMEs require extra working capital to support their cash flow, accommodate unexpected expenses, buy stock or meet seasonal demand. Many small companies find themselves needing additional funds to finance business opportunities or keep day-to-day operations running.
- Small businesses, often dependent upon invoice fulfilment, use credit to manage their cash flow. Maintaining a stream of working capital is a pain point for them, especially as they balance late payments and unpredictable demand with fixed overheads like rent and payroll.