Many individuals face ups and downs in their business activities. Business faces uncertainty due to many factors i.e., costs of raw materials, labour costs, government economic policies, market conditions etc. Therefore, an individual faces difficult financial position when his business suffers setback. To manage the difficult monetary situation, persons should apply for business loans.
Several lenders now are offering business loans for both new and old business enterprisers. A new business owner can utilize the business advance amount for setting up new facility in his office or factory. The old business entrepreneurs can spend the borrowed funds through these plans on expansion of their company or repayment of their old debts. Both secured and unsecured options are available with business advance.
A secured business advance avails cash between £5000 to £500,000 for time duration of 5-25 years. The APR (Annual Percentage Rates) of secured finance is also low because it is offered against collateral. Individuals requiring large money should apply for this plan.
If the persons are suffering from poor credit cases i.e., CCJs, IVAs, loan defaults etc., then they can find unsecured business finance a better choice. Unsecured loans do not initiate review of credit details of borrowers nor does it require collateral submission. Therefore, if individuals do not have property or valuables for mortgaging, then also they can obtain funds with these plans.
The monetary aid provided through unsecured business finance is between £1000 and £25000. A borrower can use unsecured finance for the 1-10 years duration. However APR on this scheme stands high.
However both categories of finance are available on certain conditions:
1. A person should be an UK national and has completed 18 years of age,
2. A person has a permanent shelter in UK in his name,
3. A person must have income proofs ie. earning from business & other sources &
4. A person should carry a valid checking account of an UK bank.