Originally written by Partner Content on Small Business
Deciding to take out a loan is a big step for any business, especially for smaller enterprises and start-ups. Whether you need funding to cover any temporary cash-flow shortfalls, or to invest into your business to allow it grow and reach the next level, there are a number of considerations every prospective borrower will need to look at.
Of course, businesses will need to determine exactly how much they want to borrow, but this is only the start of the lending process.
Choosing your lender
Although a high-street bank may be the first loan provider that comes to mind, there are a number of other options that may be able to offer funding better suited to your needs.
You may want to use an online business loan marketplace such as Know Your Money, which is a one-stop-shop for business lending featuring high-street banks such as NatWest and Royal Bank of Scotland or innovators such as Spotcap, Esme and Iwoca.
Alternative lenders
This umbrella term encompasses the variety of challenger banks and fintech lenders, including peer-to-peer platforms, which can now offer competitive loans to businesses. Over the last few years their popularity has risen among businesses looking for extra funding,