Growth Finance

Over the past two years Government business loans have become a dominant factor in the UK SME lending market. CBILS loans and BBL loans were superseded by the business recovery loan scheme, but these business interruption loan schemes have since been withdrawn. The SME financing market now comprises high street banks offering overdraft facilities and bank loans for business, alternative finance lenders offering unsecured business loans and secured business loans and specialist lenders who focus on specific business financing solutions such as invoice finance, asset finance and merchant cash loans.

Business Loans for Small Business

Blueray Capital is an FCA regulated, commercial finance broker with established partnerships with all the short-term lenders offering SME lending. We offer commercial financing solutions to clients across the country but especially in London, Oxford, West Midlands, Manchester & Leeds. We work with established businesses providing whole of market access for secured business loans, unsecured business loans and finance for working capital.  

Small Business Loans – Lending Criteria

Unsecured loans are normally in the £25,000 to £250,000 range, although some short-term lenders offer larger amounts up to £500,000. A company loan may be used for expansion & growth or to support the working capital needs of the business. 

SME loans are available for businesses with two or more years trading. There is often a minimum turnover and profit requirement, and many lenders require that the business serves multiple customers. For larger commercial loans the borrower may need to consider a secured business loan where the lender takes a debenture over the business.

Short term business loans are often capped at 12 months term, but some lenders offer business finance loans up to 5 years. Interest rates vary from low single digits to mid-twenties, so it makes sense to appoint a commercial financing broker to help source the best business loans available.

To apply for a business loan can be a rapid process as many of the alternative finance lenders especially have automated, online portals which enable them to rapidly assess the strength of the applicant. Indicative loan offers with some lenders are available in hours, but the overall process is likely to be 1-2 weeks.

Getting a Business Loan

Banks and short-term lenders have different information requirements but normally SMEs who apply for a business loan will need to provide full accounts, latest management accounts, bank statements and Director information. All business financing, be they unsecured business loans or secured business loans, is subject to credit checks and approval, identity checks (KYC) and completed legal documentation. Director Personal Guarantees are often required.

A recent and growing requirement for short-term lenders is open banking and accounting system access. Open banking provides secure, read-only access to the SME loan applicant’s bank account for a short period, once relevant credentials and permissions are provided. Providing access to accounting packages such as Sage, Xero & QuickBooks, among others, and visibility of the bank account enables short-term lenders to rapidly assess the financial performance of the borrower and the strength of their application. This is a trend that is likely to expand to cover most of the SME lending market.   

Apply for a Business Loan

As a trusted commercial finance broker for small business loans, we provide business owners, managing directors and finance directors rapid access to the entire business financing market including banks, alternative finance lenders and specialist lenders. This is at no additional cost to you, the potential borrower, as our remuneration is provided by the lender as a share of its arrangement fee.

To receive a prompt response with an indication of likely terms, submit a summary of your small business loan requirement with an explanation of how the funds will be used, by clicking on the Apply button below.