For entrepreneurs and small business owners, there are a number of business finance options available. From traditional business loan options to modern online lending platforms, there are a variety of ways to secure the funds you need to invest in your company. With so many different types of small business finance options available, it's important to understand the differences between them and determine which one best fits your specific goals.
The most common small business loan option in the UK is probably a traditional bank loan.
Banks tend to have stricter lending requirements, so you're likely to need to be established in order to obtain business finance from them. You may receive a lower rate than an online lender, but it's a much less flexible option.
Bank loan may be your go-to for business finance but they are often quite hard to qualify for.
For those looking to invest in the long-term growth of their business, angel investing could work. Angel investors are typically high-net-worth individuals willing to provide capital to start-ups or small businesses in exchange for a stake in the company.
Getting outside investment is an option but it can be risky if the person changes their mind.
The issue is that the process of angel investment involves a substantial amount of money and risk for the investor. Friction could occur between the investor and the business if the investor decides they want a higher stake in the business, or if they change their mind and back out of the deal.
If you're after a piece of equipment, we offer asset and equipment financing. This type of finance works to help you acquire the necessary equipment without having to pay the full cost upfront. You can borrow against the value of the asset, with repayment terms that fit your budget and business needs.
Equipment finance is a flexible way of getting needed assets for your business.
If you're seeking a more modern alternative to traditional financing, an online broker like Love Finance could be the answer. While bank loans may feel like the go-to, they can be difficult to get approved for and require rigorous checks. Because of this, online lending platforms have adapted to offer super-fast funding, even in a matter of hours. This means that you can get the business finance you need in a matter of hours, no more waiting around. And as it's all done online, it's easy and can be done from any device.
Online brokers are a great option for small businesses as they offer reliable and tailored finance.
Love Finance offers a variety of loan products that range from short-term working capital business finance to card payment loans that you repay only when you make a sale.
Whether you're a start-up or a growing small business, there are a variety of small business finance options available to help you finance your ambitions. By understanding the differences between these options, you can make an informed decision on which business finance is the best fit for your needs. With the right type of loan, you can invest in your business and achieve your goals.
