Business loan: Where the bank will advance a sum of money for your business to repay over a period of time.
It is a very useful product but more useful if you know more about the bank supplying the business loan.
Lenders have specific criteria for customers to be able to borrow on a loan basis.
If the loan is for a specific purpose i.e. to purchase software then they can request a copy of the underlying invoice for the software.
The lender may only advance a loan only for a specific purpose for example working capital or to purchase new equipment.
Unsecured loans mean that there is no security in the form of assets or charges on assets.
A secure loan could mean security against a property, it is common for a lot of lenders to require support in the form of directors guarantees in lieu of any assets.
Business loans are great for businesses that want to borrow money so they can grow rather than wait to build cash reserves.
What can you use a Business Loan for?
Paying tax or vat bills
Paying Insurance premiums
Working capital purposes