How do Business Loans Work?
Have you decided that you want to apply for Quick Business Loans? Here’s what you need to know about working with Leads 2 Trade’s funding team
1. Understand the level of funding you need and why you need it
We always encourage our customers to only borrow the exact amount of money they need. After all, why borrow money you don’t actually need and find yourself paying it back with interest on the top? Perhaps even worse is not borrowing enough money meaning that your business will be left with a debt but without having achieved what you wanted to achieve by taking the money out in the first place.
Please do make sure that you have costed everything as accurately as you possibly can before you approach with us a figure you need. You may wish to add 5% to the figure as a buffer because, as the old business saying goes, expansion takes longer and costs more than you ever think it will.
2. How long do you need to pay it back?
At the start of the article, we mentioned that debt is only ever a problem if you don’t know how to pay it back. When speaking with your Leads 2 Trade funding expert, ask them to run through different scenarios based upon different lengths of time to pay the loan back.
Make a note of all the figures you’re given and then move onto the next step…
3. Does your current or projected cash flow show that you can repay?
With the figures you have, study how money moves in and out of your account carefully so that you can really understand how much money you can actually afford to pay back every month. If you’re paying too much, you may benefit from spending the money you took out on the improvements you want but you may not be able to exploit this advantage as much as you want. That’s because there is a shortage of cash caused in the business by the loan repayments you’re making.
The longer you take a business loan out for, the lower your monthly repayment will be. However, the longer you take a business loan out for, the more interest you’ll pay over the term of the loan.
4. Can I get a business loan with no money down and with bad credit?
Yes. The more positive information you can present us with, the better. It all makes for a more convincing case we can present to the funders we carefully select to present your proposal too. However, please do not let less than perfect personal or business credit put you off applying – our funders are remarkably flexible, fair, and open-minded.
Will a business loan actually build up my and my company’s credit scores?
Yes. As with personal credit, paying off a business loan on time and in full has a very positive impact on your company’s credit score.
Applying for a business loan through Leads 2 Trade
We can offer you a decision in principle on business loans between £3,000 and £500,000 very quickly because of the technology we’ve invested in to provide the quickest and fairest decisions. 90% of our applications are approved so we strongly encourage you to speak with our funding team.
For Fast Approval Business Loans, please complete the application form here.