A business loan is similar to a personal loan but designed specifically for the use of a business. Typically, you receive a lump sum from the lender and agree to pay back the loan over a fixed period of time with agreed monthly payments.

A business loan can be used in a number of ways:

• To grow the business through purchase of assets which will allow expansion
• To provide cashflow in quieter times.

Simply put, there are two types loan. One is known as an unsecured loan and one is known as a secured loan.

Secured loans are typically for larger amounts (£25k+) with the repayments over a longer time. An example of a secured loan would be a new van for the business. The loan is known as "secured" because you use the value of an asset (the van in this case) to guarantee that the lender is paid.

Unsecured loans are typically for smaller amounts of money borrowed over shorter amounts of time. As the amounts are smaller there is less risk to the lender.

there is no such thing as a daft question, so if you want to ask anything else, please just give us a call on 01534 634001 or drop in for a chat.

Once we receive your application we will contact you either by telephone or email to ask any questions, and advise on any paperwork that may be required in order to complete the process.

The first step if you’re struggling is to give our friendly team a call - we’re here to help you find a sensible solution. The sooner you call us the more options we’ll be able to give you, remember good borrowing behaviour isn’t just repaying on time, it’s getting in touch if there’s a problem.

You will have to pay interest at a fixed rate on the amount you borrow, so the total repayable includes the total interest charges and the capital borrowed (much like a mortgage). The total repayable is then divided by the number of monthly payments you have chosen, to provide a fixed monthly repayment figure.