Leeds-based SMEs seeking a small business loan to provide working capital, pay taxes, buy vehicles and machinery, or to fund business expansion, have many types of loan to choose from.
Borrow from a few £thousand up to £5million. Pay the loan back over weeks, months, or years.Â
Read on to learn more about:
Business owners are spoilt for choice when it comes to small business loans in Leeds. While some loans have specific purposes, such as paying VAT, others can be used for any business expenditure.Â
If you’re launching a new business in Leeds, you may be eligible for a startup loan – seed funds to get a new venture up and running. As well as private lenders, Government funds are also available for this type of loan. Security may be required.
Working capital loans pay for expenses like wages, fuel bills, stock and raw materials and more. In some cases, added security may be required. Â
Working capital loans for Leeds SMEs include:
Works like a traditional bank loan. Borrow from £1,000 to £500,000. Repay the loan in a few months or over several years. Security may be required.
Stop waiting 30, 60, 90 days or more for customers to pay their bills. Receive the cash tied up in your outstanding invoices as soon as you raise them. You retain control of your sales ledger. Clients need never know you are using your invoices to raise funds. No added security is required.
Works like a standard bank overdraft. Dip into an agreed credit limit as and when you need funds, then pay the loan back as your business revenues come in. Security may be required.
Businesses that accept customer credit and debit cards can borrow against the value of their card sales. As your card sales increase, your borrowing limit goes up. No security required.
Business credit cards work the same as personal credit cards, but are in the name of the business, not an individual. Business cards typically have a higher credit limit than personal accounts and higher interest rates than other forms of business borrowing. Security may be required.Â
Cover the costs of business expansion with a development or bridging loan. Use the funds to pay for refurbishments and extensions to your operating premises. Borrow up to 90% of the project cost. Repay the funds over 1 – 30 years. The property acts as security for the loan.
Vehicles and major pieces of equipment can be expensive and buying them with cash can seriously hurt your cashflow. However, asset finance can absorb the financial impact. Buy vehicles, plant and machinery over time. Use the equipment as you pay for the equipment. In many cases, the asset acts as security for the loan and there is no need to provide extra collateral.
Joining a franchise allows entrepreneurs to become part of a well-known brand, enjoy centralised marketing support, and have fast access to products and equipment. However, buying into a major franchise group in Leeds can be very expensive, and few franchisors offer funding to cover the startup costs. A franchise loan allows you borrow from £1,000 to £5million to get you on the franchise ladder. Security may be required.
Paying your VAT bill late can leave you facing penalties and interest from HMRC. VAT loans are designed to help you pay your tax on time. Avoid penalties and give your business cashflow a boost. The lender pays HMRC direct. Repay the loan over 3, 6, 9, or 12 months.
Securing a commercial mortgage in Leeds can provide businesses with the necessary funds to purchase commercial property or land within the city. Unlike unsecured business loans, which have a maximum limit of £250,000, commercial mortgages are more appropriate for businesses requiring financing between £50,000 and £25,000,000.
Similar to a residential mortgage, the borrower typically obtains the loan amount from a bank or specialised lender and repays it through monthly instalments over a fixed term with added interest. However, the property or land value is usually higher with a commercial mortgage than with a residential mortgage.
If you’re interested in obtaining a commercial mortgage in Leeds, our team of experts specialise in providing tailored advice and can help you identify the right loan product for your business. Get in touch with us today to learn more.
Business grants are not loans. They do not need to be repaid, nor do they require security. However, business grants are typically slow to secure, come with tight eligibility rules and may have severe restrictions on their use.
Leeds-based businesses – start your search for grants and support here:Â
As well as loans and grants there are other ways to finance your business. These options vary significantly in scope, rules and restrictions, and the level of lender participation. SMEs are therefore advised to conduct due diligence before accepting any kind of alternative finance.
Applying for a small business loan in Leeds is typically straightforward. Most lenders will require the following information:
Top Tip: Some lenders may ask for a personal guarantee by the business owners or directors to secure the loan. If they do, they will check their personal credit scores. Don’t get caught out by an error on your credit report, always check your business and personal credit scores before you apply.
The credit score you need to qualify for a business loan in Leeds will vary depending on the lender and type of loan you choose. In many cases, a score over 600 will be required to get a fast approval. However, even if you have bad credit, or you’ve been turned down elsewhere, it may still be possible to secure the funds you need.
Typical interest rates on business loans in Leeds range from 4% to 15% APR.Â
Some loans will fund within a few days, while others (such as development loan), will take much longer. One to three weeks to receive your funds is typical, but the timing will vary from lender to lender and the type of loan you choose.
There are many types of small business loan, with differing rules of application. Leeds business owners seeking funds may find themselves forever searching and making applications to lender after lender.
The delays this can create could cause you to lose revenues and leave your business vulnerable to the competition. Instead, working with a broker, who can access small business loans from a wide range of lenders is a better way to go. No more cold calls and endless demands for information, simply tell us what you need and leave the rest to us.Â
Give your business the funds it needs to thrive. Register with Swoop to find the best rates, the best terms and the best small business loans in Leeds.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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