Small business loans

[NordicCrankShaft]

I'm a small business, I'm looking for a small business loan so I can fund the purchase of equipment. Turn over can vary from £5-7k a month. The only thing that seems to keep popping up is Iwoca which I'm reluctant to go anywhere near as the £9k I'm looking for sees me paying back £7.3k in interest over two years which I think is wild!

Am I missing something? The company is in a decent position, has money in the bank and zero debt aside from a an currently on lease.

[rallye101]

How new is the business? Government offers them if less that 3 years old

[StevieBee]

NordicCrankShaft said:

Am I missing something? The company is in a decent position, has money in the bank and zero debt aside from a an currently on lease.

Have you checked the company's credit rating? I'm in a similar position with no lending, no debts, not even a lease on anything and four years trading record that shows consistent growth...... but have a very low credit score, presumably on the basis that I've never had any credit.

I have no need for loans or credit of any kind but am applying for company credit cards for the sole purpose of boosting the rating should that need arise in the future.

[NordicCrankShaft]

Try capital on tap, they were trying to throw a credit card at me a few months back but have no need for it.

As for the business, 4 years old in November.

[NordicCrankShaft]

rallye101 said:

How new is the business? Government offers them if less that 3 years old

From what I have seen the government stuff is more like a personal loan disguised as a business loan.

[Disco You]

Have you considered using a broker? A decent one will be able to advise what sort of a lender is likely to offer you financing, and can of course handle the applications.

If the purchase is for equipment have you looked at asset finance providers?

Outside of that, some of Iwoca’s competitors are merchant cash advance providers like Liberis, YouLend, 365 finance. But as you have already gathered, these companies with very high approval rates charge high fees/ interest (because the merchants they serve are high risk).

[22]

Nothing with your bank?

I had a small business account with NatWest (ltd) and they offer loans, now with Virgin (was offered £1500 to move away for some reason) and they also have various small business finance options. Proper job (ltd co) I bank with Santander and they don't seem to. Not checked criteria etc with any.

[Rufus Stone]

NordicCrankShaft said:

I'm a small business, I'm looking for a small business loan so I can fund the purchase of equipment. Turn over can vary from £5-7k a month. The only thing that seems to keep popping up is Iwoca which I'm reluctant to go anywhere near as the £9k I'm looking for sees me paying back £7.3k in interest over two years which I think is wild!

Am I missing something? The company is in a decent position, has money in the bank and zero debt aside from a an currently on lease.

Got a pension?

Set up a SSAS and lend the money to the Ltd from that. Minimum interest 1% over base.

[strees]

There are some good lenders who specialise in SME's and smaller business loans. Happy to point you in the direction of a couple.

[Mr Overheads]

Borrow £9k personally and loan it to the company as a Directors Loan.

Paperwork to borrow will be far less,interst rate probably lower, bet you could get it in minutes online, go to Moneysavingexpert loans section and follow their tips given it's always upto date.

If you're lucky might even be able to get £9k on a 0% credit card over 2 years.