Small Business Loans Plymouth

If you’re an SME in Plymouth and you’re seeking funds to support your business, you’ve come to the right place.

Small business loans are available for all types of Plymouth businesses and for every type of purpose. Borrow from just a few £thousand all the way up to £5million, repay in weeks, months or years. Support your cashflow with working capital, buy major assets such as vans and machinery, secure the funds to start a new venture, or give you the financial muscle to grow your business faster.

Read on to learn more about small business loans in Plymouth:

  • Plymouth small business loans
  • Plymouth business grants
  • Alternative business financing 
  • Your credit score 
  • Successfully applying for a business loan

What small business loans are available in Plymouth?

Expand production, launch a business, pay your VAT, support cashflow, or buy vehicles, plant and machinery:

Starting a new business

Entrepreneurs seeking to launch a new business in Plymouth may get a financial boost with a startup loan – hard-to-find seed money to get your new venture off the ground. Government funds may also be available for this type of loan. Security may be required.

Expansion loans

Expand operations with development and bridging loans. Use the funds to refurbish or extend your current premises. Borrow up to 90% of the project cost and repay over 1 – 30 years. The property acts as security and in most cases, no extra collateral is required.

Working capital loans

Working capital loans can be used to pay wages, utility bills, inventory and more. Depending on the type of loan you choose, added security may be required. 

Working capital loans for Plymouth-based businesses:

Type of loanDetails
Small business loanWorks like a traditional bank loan. Borrow from £1,000 to £500,000.
Invoice financeRelease the cash tied up in your outstanding invoices.
Revolving line of creditWorks like a bank overdraft. Dip into the available funds as and when you need them. Pay back from incoming revenues.
Merchant cash advanceFor businesses that accept credit and debit card payments. Borrow against your card sales, the higher they are, the more you can borrow.
Business credit cardsWork like personal credit cards but are held by the business instead of an individual. Usually come with a higher credit limit than personal credit cards. Can be more costly than other forms of small business loan.

Buy major assets

Asset finance can help Plymouth-based businesses to buy expensive equipment, such as vehicles, plant, and machinery. Borrow up to £5million. Make money with the equipment as you pay for it. The asset acts as security for the loan. In many cases, there is no need to provide added collateral.

Franchise finance

Franchises offer entrepreneurs an opportunity to join a well-known brand, benefit from centralised marketing support, and have easy access to products and equipment. However, becoming part of a major franchise can be expensive, and few franchisors offer funding to cover the setting-up costs. A franchise loan can solve this problem. Borrow from £1,000 to £5million. Repay over months or years. Additional security may be required.

VAT loans

Slow paying customers can leave Plymouth SMEs struggling to pay their VAT bill, making them vulnerable to penalties and interest. VAT loans can be used to pay the taxman on time, avoiding penalties and allowing businesses to hold on to their available cash much longer. The lender pays HMRC direct. Repay the loan over 3, 6, 9, or 12 months.

Commercial mortgage

Obtaining a commercial mortgage in Plymouth can provide businesses with the financial resources to acquire commercial properties or land within the city. Compared to unsecured business loans, which have a maximum limit of £250,000, commercial mortgages are more suitable for businesses requiring financing between £50,000 to £25,000,000.

Commercial mortgages function in a similar way to residential mortgages, where the borrower obtains the loan amount from a bank or a specialised lender and repays it through monthly installments over a fixed term with an added interest. However, the property or land value is typically higher with a commercial mortgage compared to a residential mortgage.

If you’re considering obtaining a commercial mortgage in Plymouth, our team of experts specialise in providing tailored advice and can assist you in identifying the right loan product for your business. Contact us today to learn more.

How do I find a business grant in Plymouth?

Business grants may take longer to secure than a loan and may come with restrictions on their use. However, unlike business loans, business grants do not need to be repaid or require security. 

Business grants in Plymouth may be found here: 

What alternative business financing options are there?

Alternative business financing options include venture capital, angel investment, microloans and crowdfunding. Structure, costs, and lender participation will vary with each option, so it is important to conduct your own research before you start an application.

Type of loanDetails
Venture capitalPrivate equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have high growth potential, or which have already demonstrated high growth.
Angel investmentCapital for businesses, including startups, usually provided in exchange for convertible debt (a loan that can be converted to shares), or shares in the business.
MicroloansVery small loans to borrowers who typically lack collateral, steady employment, or a verifiable credit history. Designed to support entrepreneurship. Also includes Peer to Peer loans, where private individuals provide funds directly to small businesses or other individuals. Interest rates on microloans can be more expensive than other types of borrowing.
CrowdfundingFund a project or venture by raising money with many small donations from a large number of people, typically via the internet. Funds raised are not a loan and do not need to be repaid as long as you use them for the purposes described in your presentation.

How to apply for a business loan in Plymouth

Application for most small business loans is usually straightforward. Lenders will typically require the following information:

  • Most recent three-years bank and tax records. (Business account for established businesses,  personal account for entrepreneurs launching a new small business).
  • Cashflow forecast.
  • Profit and Loss Statement and recent Balance Sheet. (Established businesses).
  • Details of any existing debt.
  • List of major customers and suppliers.
  • List of any assets, such as property or inventory.
  • Business plan – as detailed as possible.

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.

What credit score do I need?

As well as your business credit score, some lenders will review your personal credit report. The credit score you need to qualify for a business loan in Plymouth will vary depending on the lender and type of loan you are applying for. A score of 600 or more is usually required for swift approval, but even if you have bad credit, or you’ve been turned down elsewhere, it may still be possible to secure the loan you need.

What are the typical interest rates for a business loan in Plymouth?

Interest rates vary according to the type of loan you choose. Typical interest rates on business loans in Plymouth range from 4% to 15% APR.

How long does it take to get funds?

No business owner wants to wait for the funds they are borrowing, but the length of time from application to receipt of funds varies from lender to lender and the type of business loan you choose. Some loans will fund within a few days, others will take much longer. In most cases, you should allow one to three weeks to receive your money.

How to find the best small business loan in Plymouth

There are many types of small business loan, with differing rules of application. Plymouth SMEs 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. 

Get started with Swoop

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 Plymouth. 

Written by

Chris Godfrey

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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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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