Small Business Finance

Many small businesses run on very tight financial budgets, and there will often be times when you have money waiting to come in, but bills and wages that need paying immediately. In emergency situations like this having access to an overdraft facility or business loan can tide you over until you get the money you are waiting for, so if you run your own business it is a good idea to look around in advance and have a back up plan in place in case you need it.

There are several types of business loans available from various lenders, and it is important that you do a bit of research before you apply for a loan to see which type is best for you and your business. No collateral business loans are useful for those small businesses that do not have a lot of physical assets such as premises or property, as they are unsecured loans that are based purely on credit rating and financial history.

Once you have been approved by the lender you will receive the amount agreed quickly (usually within 48 hours), and this can be very useful in emergency situations. However if you are a new business, operating on a low turnover or have had financial problems in the past you may not have built up a good enough credit rating to qualify for an unsecured loan deal. There are lenders who will provide loans for businesses with bad credit ratings, but these can often be at very high interest, with inflexible payment options.

As a small business you may not just need extra cash for emergency situations, but also to help you expand and grow into a bigger, more profitable company. In this case you can apply for business working capital loans, which will provide you with the working capital you need to implicate any operational or structural changes you have in mind.

Getting a traditional business loan from lenders such as banks can be very drawn out and time consuming, and if you have a poor credit rating you could be refused outright. With working capital loans you can usually apply online and get approval within 24 hours. Most lenders offer flexible payments options, but many working capital loan deals are only available for established businesses, and you may be refused if you have only recently begun trading.