By Partner Content on Small Business – Advice and Ideas for UK Small Businesses and SMEs
As a small business owner you might be thinking about loans as a way of starting or growing your company.
Unfortunately, loans are notoriously complicated, riddled with complex terms and teeny tiny small print. Let us demystify the process and show you some of the best small business loans around.
Is a small business loan right for me?
It depends what type of business you have, how developed you are and what you need the loan for.
For example, some loans aren’t great for seasonal businesses as making repayments during off-peak times of year will be challenging.
In this case it’s worth considering other funding options like friends and family, crowdfunding, incubators, venture capital, small business grants or switching your business bank account. Check out our rundown of the best business bank accounts open to UK SMEs.
If you want to go ahead, you can do a few things to improve your chances of success. Make sure you’re as clear as possible on how much you need to borrow and what exactly the loan would be used for. Work the loan into your business plan and have a cash flow forecast
Tag Archive for Bank loans
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NatWest adds another £2.2bn to its Brexit Growth Fund
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
NatWest has added another £2.2bn in capacity to its £6bn Brexit Growth Fund to help small businesses.
The NatWest Growth Funding initiative, designed to help scale-ups, fund green initiatives and navigate current Brexit uncertainty was doubled this year to £6bn.
So far, NatWest has committed £5.6bn of the £8.2bn available, removing any cap on amounts which can be borrowed.
The bank says it has identified several thousand customers likely to suffer most from Brexit uncertainties and plans to contact them directly.
>See also: Cashplus plans to lend £400m to small business from next year
In addition, NatWest is holding a roadshow across the UK answering questions from small and growth business about Brexit means for them. The next two events will be held on October 21 in Birmingham and October 222 in Milton Keynes, where the focus will be on four areas: importing and exporting, supplying services to the EU, employees, and using and transferring data. To find out more, go to the NatWest Brexit Hub.
Paul Thwaite, MD commercial banking, said: “During a time of such uncertainty, it is imperative that we do all we can to support our customers. Our business customers are extremely busy, and there
Hot Business News Today
Cashplus plans to lend £400m to small business from next year
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
EXCLUSIVE: Cashplus, one of Britain’s longest-established digital challenger banks, plans to lend £400m to small businesses over five years.
The fintech plans to have a 10pc market share of all new UK business accounts by 2024, compared with the 7pc share it already has today.
Cashplus applied to become a full-blown bank last year and expects to be authorized in Q1 2020 with the aim of becoming the specialist bank for small business. It already has around 75,000 business accounts.
>See also: Co-operative Bank to revolutionise small business banking offer
Unusually for a challenger bank, Cashplus has been in profit for the past eight years. In 2018-19 it generated £46.5m in turnover – a year-on-year increase of 19pc.
Should its banking licence be approved, Cashplus will fund its SME lending through the £500m of deposits it has built up since its launch in 2005.
Rich Wagner, chief executive of Cashplus, said: “The day we become a bank we will be able to unlock £400m of money and be able to lend that out to overlooked SMEs, which will almost supercharge our growth.”
Today, Cashplus has 250,00 customers, of which nearly one third are startups and entrepreneurs.
Since launch, Cashplus has expanded
Hot Business News Today
HSBC adds billions to its £14bn small business loan fund ahead of Brexit
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
HSBC has added another £2bn to the £14bn pot of its small business loan fund, which it launched this time last year.
The bank says the increased fund is part of its British small and medium-sized businesses navigate Brexit and help them grow.
According to HSBC’s own research, 28pc of businesses have done nothing to prepare for Brexit.
Since launching its initial SME Fund in 2014, HSBC has committed more than £60bn to UK SMEs.
This year’s fund, which is HSBC’s largest to date, includes increased ring-fenced pots for international businesses and for the agriculture sector because they were both fully utilised last year.
See also: Best small business loans in the UK
The amount of money ring-fenced for companies that want to grow overseas has been doubled to £2bn, while the agriculture pot has increased to £1 billion from £300 million last year.
Almost one fifth (19pc) of businesses surveyed by HSBC have looked at opportunities to trade outside of the EU after Brexit.
Regional allocations across England, Wales, Scotland and Northern Ireland ensure that companies throughout the country can benefit the fund.
HSBC was unavailable to say how much of last year’s £12bn small business loan fund allocation has been
Hot Business News Today
Best small business loans in the UK
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
As a small business owner you might be thinking about loans as a way of starting or growing your company.
Unfortunately, loans are notoriously complicated, riddled with complex terms and teeny tiny small print. Let us demystify the process and show you some of the best small business loans around.
Is a small business loan right for me?
It depends what type of business you have, how developed you are and what you need the loan for.
For example, some loans aren’t great for seasonal businesses as making repayments during off-peak times of year will be challenging.
In this case it’s worth considering other funding options like friends and family, crowdfunding, incubators, venture capital, small business grants or switching your business bank account. Check out our rundown of the best business bank accounts open to UK SMEs.
If you want to go ahead, you can do a few things to improve your chances of success. Make sure you’re as clear as possible on how much you need to borrow and what exactly the loan would be used for. Work the loan into your business plan and have a cash flow forecast ready, making sure you include loan repayments.
Having these
Hot Business News Today
5 Mistakes That Sabotage Your Company's Bank Credit Score
by Janet Gershen-Siegel • • 0 Comments
Yes, there are many types of creditors from which you can get funding for your business. But here’s why good bank credit is one of the most important.
Hot Business News Today
4 Must-Read Strategies to Pay Off Your Bank Loan Without Losing Your House
by Daniel Wesley • • 0 Comments
As long as entrepreneurs are clear on the stakes — and prepared to make good on their loans — they can earn from a bank relationship, too.
Hot Business News Today
SMEs don’t understand personal guarantee in business loans
by Owen Gough • • 0 Comments
SMEs are signing up to livelihood threatening loan conditions, ignorantly, a report exposes today. The research by Wirefund, an SME loan provider, reveals that the majority of SME owners have no idea what a personal guarantee is, despite it being a requirement from banks and many alternative finance providers when lending to businesses. Wirefund asked
The post SMEs don’t understand personal guarantee in business loans appeared first on Small Business.