There's a vast range of businesses that can benefit from getting a business loan. But the purpose of the funds for each business is likely to vary, so the type of loan can vary too. While at first glance, different kinds of loans may appear similar - they each come with their own interest rates, terms and lending requirements. So, depending on the purpose of the funding and what you want from it, the type of loan that suits you best will vary.
Read on to compare business loans and see which one will suit you.
Compare our business loans to find the best option for your business.
Unsecured loans are a great way for businesses to get the funds they need without using collateral. The lack of collateral generally makes it a less risky option for borrowers. This means that your assets are not under threat of seizure and your loan and assets exist separately.
Love Finance unsecured business loans come with flexible repayment terms, fixed interest rates, and funds can be accessed quickly.
Unsecured loan interest rates may be higher than secured as they pose more risk to the lender, but there is less risk for you as the borrower.
With a secured loan, the lender requires you to put up an asset as collateral - depending on the lender and type of loan; this could be a personal or a business asset. Putting up an asset as collateral can give you the opportunity to borrow more money as the lender has the reassurance that you will make the repayments. However, it can be a risk to use collateral with a loan. If you attach your house to your loan and fail to make repayments, then you could end up losing your home.
Secured loans can also be used to gain a longer loan term. You can read more about loan terms here.
Going for an unsecured business loan is a fast, risk-free option for small businesses.
You can also read more about the difference between unsecured and secured business loans here.
Love Finance only offers unsecured loans, as we do not want to put you at risk of losing anything important to you. While secured loans can allow you to borrow "more", you can still borrow up to £500,000 with us.
A merchant cash advance (MCA) is an alternative financing option.
The main requirement for this type of funding is that the business takes payments through a card terminal. The lender supplies the business with money in exchange for future earnings - typically a percentage of your company's monthly card sales.
A merchant cash advance is typically short-term, so works for businesses that need a quick injection of cash, such as seasonal businesses or those with an immediate and pressing need for funds.
Another benefit of a short-term merchant cash advance is that it can be repaid quickly - usually within 12 months. This is ideal for businesses that have the capacity to pay off their loan quickly and don't want to be tied into long-term commitments.
A merchant cash advance is also relatively easy to obtain, as lenders usually assess the creditworthiness of a business based on its card sales rather than personal or business credit scores.
Merchant cash advances are suitable for businesses that take at least £2k in card payments per month.
A small business loan, also known as an SME loan, can be extended to businesses of a certain size that make a certain amount of money. A small business consists of 2 - 50 employees and turns over under £10 million. A medium business comprises 50 - 250 employees and turns over up to £50m. Smaller businesses have different needs and may need more tailored financing solutions compared to big businesses. They are likely to need to keep an eye on their cash flow as it has more of an effect on the business.
Small businesses are vital to the growth of the UK economy; SMEs contribute to 99% of the UK's business population.
Love Finance mainly works with small businesses, so we understand the struggles they can face, and we're always on hand to offer any business advice you may require.
Love Finance specialises in tailored SME funding.
Instant business loans are designed for businesses that need funds fast.
Some people think that needing funding quickly is a red flag, but it isn't necessarily. For some people, it's a case of being disorganised, which is understandable as for a small business owner, it can be hard to juggle everything. Some face issues that are out of their own hands, which leads them to need funds ASAP.
At Love Finance, generally, we get a deal done in around 24 hours- but we could get you funded in as little as 4 hours. This means from the moment you apply; we can get you approved and funded in one day - giving you the freedom you need for your business.
Cash flow loans provide businesses with flexible and tailored funding to manage their cash flow needs, while having the security of a fixed repayment schedule.
Cash flow refers to the money in your business that is readily available to spend. Getting a business loan to fund your cash flow means that you have more cash to invest in your business; rather than having it tied up in assets or customer invoices. Cash flow finance can also be beneficial for seasonal businesses that need to plan for busy or quiet periods. A healthy cash flow should help you return a profit, as you can use the funds to expand your product range, launch a new service, hire or train new staff, and ensure all your bills are paid on time.
Protecting your cash flow is imperative as it allows you to invest in other areas of your business.
Cash flow loans may also require less paperwork as lenders are likely to assess your business' financial position based on current performance rather than credit scores or other criteria.
Love Finance cash flow loans have fixed interest rates, a straightforward process and fast funding. As with our other loan offerings, you can choose a term from 3 to 60 months and borrow from £2,000 to £500,000.
Being a limited company is not a dealbreaker for getting funding with Love Finance. We can get you funded if you're a sole trader; it just makes it a little easier if you're limited. If you are limited and registered with Companies House - your business information is more freely available so we can gauge more easily whether we can get you the funding you need.
Having enough available cash flow within your business to pay your VAT bill on time can pose a problem. The last thing you want is to receive a late payment fine from HMRC, which could damage your credit score.
VAT finance is a stress-free way of ensuring payments are made on time. You borrow an amount equal to the value of your expected VAT bill for the period, repayable at an agreed rate over six or twelve months. This could be especially useful when you have seasonal peaks in sales but need a smoother cash flow throughout the year.
The lender makes the payment directly to HMRC, eliminating the hassle for you and making it easier to manage your cash flow. This means you can focus on other areas of business - such as marketing and growth strategies - rather than worrying about how you will pay the VAT bill.
VAT finance is a simple way of paying your VAT bill on time.
Love Finance offers flexible VAT finance solutions tailored to suit your business's budget and needs. We can also offer discounts if you already use us for other types of financing - check out our product page to find out more!
Short-term loans are ideal for businesses that need quick access to funds to manage cash flow, launch new products, increase inventory or expand into new markets. If your business needs a small loan over a short period of time, then a short-term loan may be the perfect solution for you. Short-term business loans tend to be taken out over 12 months; the monthly payments will be higher than a longer-term, but you pay it off quickly, so you are not out of pocket for too long.
Short-term funding is good for businesses that want funding fast, and over a reduced period.
At Love Finance, we offer flexible and tailored short-term loans to suit your needs and budget. Our team can work with you to ensure you get the best deal possible in a timescale that works for you. So, if your business needs an injection of cash quickly, get in touch, and we can help you find the right solution.
Having a company vehicle can be invaluable. Your business may require you to complete jobs promptly, and having a reliable company van can make that happen.
Van finance is available through Love Finance, with both personal contract purchase (PCP) and hire purchase (HP) options open to businesses. This means you can get the right van at the right price and spread your payments over several months or years. This option works especially well if you need to figure out how long you'll need the vehicle because it allows you to hand it back at the end of your agreement - making it easier on your cash flow.
Browse our van directory and choose from over 25,000 vehicles.
We recently invested in a brand new van directory and a dedicated asset finance team - so you can browse thousands of vehicles and tailor the search to your needs. Whether you know exactly want you want, or need some assistance, we can help you find your ideal vehicle.
In addition to van finance, we can finance other assets for your business, from construction to office equipment.
Equipment financing may be an attractive option if your business needs equipment or inventory but doesn't have enough operating capital on hand. This type of financing lets you purchase needed equipment on credit and spread out the cost over several months or years. It's an attractive option because it lets you conserve cash while obtaining the necessary equipment.
At Love Finance, we offer equipment finance for businesses of all sizes. Whether you need a single piece of equipment or an entire suite, we can create a tailored solution that meets your needs. We work with a range of lenders that offer different routes to financing, so you can be sure to find something that works for you.
Equipment finance can be used to finance a range of assets, from IT equipment to agricultural machinery.
If you need to invest in plant, machinery or construction equipment for your business, plant finance could be the answer. It's a type of asset finance which allows businesses to purchase necessary items with an agreed loan amount repayable in instalments over time.
Construction equipment can come with hefty upfront costs, so financing is a sensible option as it allows you to spread the cost out into manageable chunks and protect your cash flow.
Love Finance can offer flexible and tailored financing solutions designed to meet your budget and needs. With our help, you can purchase the essential items necessary to give your business the boost it needs - without worrying about significant upfront costs.
Love Finance provides a range of tailored finance options to get your business the most suitable funding.
Love Finance has a range of business loan options that are ideal for small businesses that need to purchase assets, manage cash flow or launch new products. Whether you're looking for finance to buy a van, equipment or even just a short-term loan – we can provide the right solution tailored to your needs and budget. Love Finance offers flexible and tailored solutions designed to meet your specific requirements. Our expert team will work with you to find the most appropriate solution for your business, so you don't have to worry about significant upfront costs or dealing with unhelpful banks.
Our team is experienced in helping businesses find the perfect finance package so get in touch today and let us help you find the right option for you. We have access to a range of lenders and financial solutions which means that you know you'll be getting the best possible deal. So don't hesitate - contact us today!
