business loans

What is it?

A business loan does what it says on the tin. The lender advances a set amount at inception which is then repaid using fixed or variable monthly repayments over a set period of time. The parameters for the loan are set at the outset and are complied with throughout the term of the loan. Whilst what it is, is relatively simple, there are two important sub-categories in business loans which are important to understand:-

DETAILS

There are 2 main variations of Business loans:

Unsecured business loan

Unsecured business loan – No tangible security by either the business or individual and is secured via an unsupported personal guarantee from the owner(s)

Secured business loan

Secured business loan – As the above but is secured against something more tangible like a 2nd charge on a home residence or the business unit. This is often less expensive than the unsecured option

The benefits

  • Making capital and interest repayments mean that you are repaying the debt as opposed to revolving facilities where you only pay interest and are left with the debt remaining
  • You can use the proceeds for absolutely anything!! Rarely restrictions are put in place for this so you can use to purchase stock, pay off a minority shareholder, pay taxes, buy another business – literally anything you want!
  • Often only a personal guarantee is required, leaving the business assets to be used elsewhere and personal assets remain unencumbered
  • A set schedule of repayments make planning easier
Over the past year I have been working with Magna and together we have managed to move my business forward with the cash injections that they have sourced for me. The money raised helped me to secure a couple of large projects with the purchase of specialised equipment. I now employ an extra 2 members of staff and have used the finance to put them through training and equip them with the tools and vans needed for our job.I would rate Magna Money’s help through the last year as 5* out of 5* and would not hesitate to recommend the team to anyone.
Mark AbbeyToast (Southern) Ltd

reviews

Who we work with

A Selection of our  strategic finance partners

costs

What does it Cost?

Ranges from 3% to 33%! And a term from 5 months to 5 years. Whilst business loans are straightforward, the disparity from one lender to another is huge, meaning it is vital to take advice from somebody who is experienced, independent and has whole of market reach.

Find out how we can help?

Providing bespoke, collaborative and expert funding advisory to business owners throughout the United Kingdom

speak to the team

CONTACT

0113 512 2711
hello@magnamoney.co.uk
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