Tailored retail business funding

Lenders typically carry out a hard credit check when you apply for a business loan, and this can cause your credit score to temporarily drop. Some lenders may check the credit score of the business and the business owners or directors. Too many searches on your credit report in a short space of time can have a bigger impact on your credit score, so it’s best to space out applications by three to six months. 

Yes, you may be able to repay your business loan early but be aware that some lenders charge early repayment penalties and fees for doing so. Check the small print of your loan before you proceed.

It depends on the type of loan. Some loans, such as merchant cash advances, can be agreed and paid into your bank account in one or two days. Other loans, such as asset financing, can take much longer.

Business loans can be used for a variety of purposes, whether that’s to cover dips in cashflow, pay salaries or buy inventory, vehicles, plant, and machinery. They can also help you to cover marketing costs, move to a new premises, or consolidate existing debt.

Yes, you might be able to get a business loan with bad credit, but you will have fewer lenders to choose from. Keep in mind that you might not be able to borrow as much as you’d originally hoped, and interest rates are likely to be higher if you have poor credit. 

If you are in good standing with your current loan(s) and your cashflow shows you can afford the extra repayments, you may be able to top-up your business borrowing. In most cases, the application process for a top-up will remain the same as your original loan.

Business loans can be both secured and unsecured. Unsecured business loans will typically be for smaller amounts, with higher interest rates and shorter repayment terms. 

Secured loans let you borrow more but require you to use an asset as security against the loan. Because this lowers the lender’s risk, interest rates are usually more competitive, and you can borrow over a longer term.

Your business loan term will vary depending on the value of your loan, the type of loan you take out and how much you are able to repay each month. Unsecured business loans can typically last between one and five years, while secured business loans might have a repayment term of up to 25 years. 

There is no set minimum for the credit score you or your business needs to get a business loan. However, the higher it is, the more likely you are to get accepted for a loan and secure a better interest rate. 

Lending criteria varies between providers and other factors such as your annual turnover and existing levels of debt will be considered too.

If you have previously been denied a business loan, it is important to take time to reassess your current financial situation. Applying for another business loan soon after being rejected for one can damage your credit score. 

Take steps to improve your credit score by paying bills on time and paying off any existing business debts before you apply again.

As the number of female entrepreneurs continues to grow in the UK, alternative lenders and some government-backed lenders have schemes and funding solutions available specifically for women-led SMEs.