What are Business Loans?
A Business Loan is probably the simplest and most familiar way to raise finance for most business owners. There can be more complex structures but usually business loans are fully amortising over a period of time with interest charged during that period (much like a mortgage). Cash is typically received at the beginning of the loan as a lump sum, and repaid in fixed instalments although payment holidays, interest only, rolled up interest and tranche repayments are seen on occasion when businesses require them.
Loans can be both secured and unsecured, with technology improvements over the last decade spawning a raft of unsecured lenders who rely largely on credit algorithms to underwrite deals. This can reduce complexity for customers who don’t want to offer security and also give an option for companies who do not have assets to offer.Enquire Now