FAQs

Are you a lender or a broker?

We are a business finance broker. Rather than lending directly, we work with a range of lenders to help you find suitable business finance options based on your circumstances and requirements. This means that we can ideally maximise your chances of being approved and getting the best rates and terms on the market.

What is an unsecured business loan?

An unsecured business loan is a type of business finance that does not normally require a specific asset, such as property or equipment, to be provided as security against the loan. Instead, your eligibility is based on factors such as trading history, revenue, business credit profile and repayment histories. 

We can help facilitate unsecured business loans of £50,000 to £50,000 repaid in monthly instalments over 6 to 84 months. 

Depending on the lender and the circumstances of the business, a personal guarantee may still be required even where the loan is unsecured.

How is a business loan different to a credit line?

A business loan provides you with an agreed lump sum that you repay over a set period, usually through regular monthly repayments.

A business credit line, similar to a credit card, gives you access to an agreed amount of funding that you can draw down when required. You generally only pay interest on the amount you use, although the exact structure and fees depend on the lender.

The most suitable option will depend on your business, how you intend to use the funds and your cash-flow requirements.

Can I get a business loan on the same day?

Yes, some lenders can provide business finance on the same day, subject to eligibility and meeting their criteria. 

However, same-day business finance can come with higher interest rates or fees. By searching across a range of lenders, we could help you find a more competitive rate rather than simply choosing the fastest available lender.

How long can I take out a business loan for?

Business loans can typically be taken out for up to 7 years, with most lenders offering a minimum term of 3 or 6 months. Depending on your criteria, some lenders may restrict the loan to 2 years maximum.

The longer the loan term, the more interest accrues and makes the loan cost more overall.  

What is the eligibility for a business loan?

Whilst the eligibility may vary between lenders, the typical criteria is:

• Based in the UK
• Minimum trading period of 12 months
• Minimum annual revenue £50,000 (may vary)
• Business has cash – is not insolvent
• Application is made by the director, owner or partner
• Credit score – personal or business credit score may or may not be considered
• Number of existing business loans and repayment history
• Personal guarantee may be required

What information do I need to provide for a business loan?

The information requested by business lenders may vary, but typically requires:

• Proof of ID and address
• 3-6 months business bank statement
• 1-3 years of annual accounts (upon request)
• Recent tax returns (upon request)
• Profit and loss accounts (upon request)
• Valuation of assets (if loan is secured)

Are there any fees for applying?

Acceptance does not charge any fees for simply applying and checking your eligibility for a business loan. If your loan is successful to the point that it is ready to be funded, some lenders may add an application or arrangement fee of 1-2%. This fee can be paid immediately or rolled up in the overall loan amount.

Will you run a credit check on my personal name or business account?

This depends on the lender and the type of finance you apply for. A lender may carry out checks on the business, its directors or owners, or both. See our guide on do I need a good credit score to get a business loan?

Can I use assets and security to get a business loan?

Yes. Depending on the type of finance and lender, you may be able to use assets or other security to support a business finance application.

Providing security can sometimes give you access to different finance options or potentially more competitive terms. However, if a loan is secured against an asset, that asset may be at risk if you do not keep up with the agreed repayments.

Do all business loans require personal guarantees?

Most business loans require a personal guarantee from the Director or owner applying – which means that if the business loan is not repaid, they can try to recover their funds from the individual and their estate. However, not all business loans require a personal guarantee and we can help you find one if this is requested. See business loans with no personal guarantee.

A personal guarantee means that you may become personally responsible for repaying the borrowing if the business is unable to do so. The exact terms and circumstances vary between lenders, so it is important to understand the guarantee before agreeing to it.

Can I use outstanding invoices as a way to borrow money?

Yes, using a product known as invoice finance, you can show a lender some outstanding invoices and they can provide up to 90% of their value upfront – once the invoice has been fully verified. This is ideal for companies that take on large orders and need some working capital and typically get a large sum payment upon completion, including those producing goods, fashion products or working in construction.

What happens if I do not repay my business loan?

If you do not keep up with your agreed repayments, the lender may take action in accordance with the terms of your finance agreement. This could include additional charges, collection activity, reporting missed payments to credit reference agencies or taking enforcement action where applicable.

If the borrowing is secured or supported by a personal guarantee, there may also be additional consequences. If you are struggling to make repayments, it is important to contact the lender as soon as possible to discuss your circumstances.

Can I get a business loan with a guarantor?

Some lenders offer business finance where a guarantor is involved, although this depends on the lender and the circumstances of the application.

A guarantor may agree to repay the borrowing if the business fails to meet its obligations. Anyone considering acting as a guarantor should understand the potential financial responsibility involved before agreeing.

Is it cheaper to repay my loan earlier?

Yes, in most cases, repaying your loan early will reduce the amount of interest owed and make your loan cheaper overall.

However, it is important that this is not always the case, since some business lenders stipulate in their loan agreements that the amount does not reduce if repaid early or if overpayments are made. In addition, some may charge early repayment fees, especially if the minimum term is not met.

This option could provide less flexibility for some businesses, so it may be worth requesting a lender that offers early repayment with no penalties and less interest upon early exit.

Can I make overpayments for my loan?

Yes, you will have the option to make overpayments and this could reduce the overall interest that is owed and lower your overall repayment amounts. 

With some lenders, the overpayment pauses the repayments – so if you pay 3 months interest as an overpayment, you are not charged for the next 3 months until the same repayments resume. 

With other lenders, the next month’s repayments continue but at a lower and adjusted amount.