Businesses rarely stand still. They expand – or they may be likely to go under. On the premise of your preferring the former, therefore, what role might business loans play in your plans for expansion in 2019?
Expanding your business
Expanding your business means capturing new markets and increasing the sales of your company’s goods and services.
There are innumerable ways in which you might try to do that – from launching new product lines, conducting the associated marketing campaigns, taking on more staff, re-fitting and re-equipping your premises, or installing new plant and equipment.
The possibilities certainly don’t end there. The website Shout Out UK, for instance, on the 21st of December 2018 listed 15 ways in which you might expand and improve your business in the year ahead.
Despite the myriad ways in which you might grow your business, however, if one thing is for sure, it is that it is likely to require the injection of fresh capital.
That is when the typical business is likely to consider borrowing the necessary funds.
In the past, the most obvious – and, in many instances, only – place to turn might have been the local high street bank. You probably needed to support your application for a suitable loan with a detailed business plan and cashflow analysis to present in a face to face meeting with the bank manager. There followed a delay – which might last a matter of weeks – before your application was considered and an answer given.
Although banks still perform such a role, they have become increasingly wary of doing so. Fortunately, therefore, others have stepped into the breach of providing business loans with considerably less fuss and bother – with the process frequently conducted entirely online and significantly faster.
Online business loans
Online business loans are typically available for sums up to £100,000 – enough to finance even some of the most ambitious company expansion projects. Indeed, many expansion plans are kickstarted with loans of around £50,000 or less.
The loans are short-term and typically repayable within 12 months – so, avoiding the accumulation of significant amounts of interest that you may face with a longer-term period of borrowing.
Often with a fixed rate of interest and equal monthly instalments, your total cost of credit is known from the very start, so that you may plan the necessary expenditure whilst maintaining full control over your company’s cashflow.
Perhaps the biggest advantage with these types of online business loans is the sheer speed with which they may be arranged – in some cases a decision in principle on the amount you wish to borrow and its repayment terms may be given practically immediately.
The formal application which follows is also streamlined and requires none of the detailed documentary support likely to be required by any bank. Instead, a series of questions helps to establish the affordability of the loan and your company’s ability to repay, so that, if the application is approved, in some cases the requested funds are transferred electronically, directly to your bank account within the next 48 hours or so.