Thinking of applying for a business loan?

What is a business loan?

A business loan is a form of borrowing for commercial businesses, unlike a personal loan which is for individuals. Like a personal loan you’ll repay the amount you borrow in monthly instalments over an agreed period of time, and the interest rate is fixed so you'll know your repayments.

What’s the difference between a secured and unsecured loan?

A secured business loan allows you to use an asset, such as property or equipment, as security against the amount you borrow. The lender uses your asset as a form of guarantee. An unsecured loan allows you to borrow without giving security on any business assets. They’re a quick and easy way to get an affordable cash injection for your business.

Secured loans are usually for higher amounts and interest rates are usually lower as there is less risk to the lender. unsecured loan tend to be for smaller sums and come with higher interest rates. Any offer you receive from Same Day Business Loans will be for an unsecured loan.

What can an unsecured business loan be used for?

An unsecured business loan can be used to fund most business related purposes, for example the purchase of premises, buying stock or equipment, covering ongoing running costs, business expansion or paying a bill.

How much can I borrow and for how long?

You can apply to borrow from £10k - £100k with Same Day Business Loans, with repayments from 6 months to 6 years. The offer rate and term will depend on your history and credit score, the more competitive terms generally being offered for those with a good credit score.

How do I make an application with Same Day Business Loans? 

All applications should be through our website.  We don’t take telephone applications, but you are welcome to get in touch with any queries via live chat or email.

Will applying for a business loan affect my credit score? 

Applying for small business loans through Same Day Business Loans will not impact your credit score.  Our lenders will run credit and identity checks when you apply, known as quotation searches which leave a 'soft-footprint' (meaning they have no impact on your credit score).

Is it hard to get a business loan?

Any business loan offer will be dependent on your business trading history, affordability and directors personal credit history. However, if you think you may have bad credit, this doesn’t necessarily mean that you won’t qualify for a business loan. The offer, rate and term will be reflective of your history and credit score, with more competitive loan terms generally being offered for those with a good credit score.

Does an unsecured loan need a personal guarantee?

Although you do not need to provide business or personal assets as a security for an unsecured loan, some lenders may ask for a personal guarantee from a company director.

What is a personal guarantee?

A personal guarantee is an agreement between a business owner/director and the lender. If the business becomes unable to meet the loan repayments, the individual assumes personal responsibility for paying back the loan.

Personal guarantees are common in business lending. It means the chance of being accepted is increased, and the potential loan amount higher as the risk to the lender is lower.

How do I know if a business loan is right for me?

Before applying for a business loan, you should take some time to work out whether a loan is your best option. You shouldn’t take out a loan if you’re worried if you can meet the repayments. It’s important to consider how much you can afford to repay each month and how long you’ll be making repayments for.

What if I’ve been refused a business loan in the past?

Just because you have been refused a business loan in the past, doesn’t mean you will be refused again.  Our lenders can re-look at applications every few months, so if there have been positive changes to your business or personal credit then this may have improved your chances of being approved.

Can I repay my loan early?

You can settle your loan early at any time, with no penalty or early repayment fees. You will only be charged interest for the time you have the funds, so making early repayments is a great way to reduce the total amount of interest you will pay.

Is Same Day Business Loans a broker or a lender?

Same Day Business Loans is a credit broker, not a lender. We work with a trusted panel of lenders to give you access to competitive funding options, fast, all in one place. 

If you need a loan quick, direct lender loans are an option, but at Same Day Business Loans we work with a number of same day loans lenders direct to find you the best deal.

Is it more expensive to get a loan through Same Day Business Loans?

The rate that Same Day Business Loans secures you will not be higher than going direct, or through an alternative broker.  We work with a trusted panel of lenders to give you access to competitive funding options, fast, all in one place.

With interest rates starting from just 6.9% per annum, a business loan can be much more affordable than a business overdraft or a business credit card.

Do Same Day Business Loans offer start up loans?

We can help with business loans for new businesses.  Start up business loans are available for businesses that have been trading for under 2 years, but you need to have been trading for more than 12 months.

Can I get quick business loans from Same Day Business Loans? 

Getting instant business loans can be tricky.  There are only a few small business lenders that offer fast lending loans. Our panel of lenders will turn round a decision within 1 working day and get the funds in your bank within 2 working days, it could just be a couple of hours.

What happens if I miss a loan repayment, or think I might miss a repayment? 

Our lenders practice responsible lending, which means before taking out a loan they encourage you to make sure you can afford the repayments. But they understand that circumstances can change.  If you think you will have difficulty making the repayments, get in touch with the lender as soon as possible. There are several options they can explore to help you get back on track.

How do I make repayments? 

Repayments are taken automatically from the bank account you provide during the funding process. On the repayment date, just make sure there are sufficient funds available in your account. Depending on the lender, you may also be able to make free early repayments through your online account.