Define the requirement
Set out the amount, purpose, timing and desired repayment period, supported by a detailed use-of-funds breakdown.
Business loan guide
Business loans
A business loan provides an agreed amount of capital that is repaid over a defined period. Depending on the lender and circumstances, it may be secured against assets or property, supported by guarantees, or offered without specific asset security.
Often considered for
- Investment in growth, premises, people or new markets
- Acquisitions, shareholder exits or management buyouts
- Refinancing existing borrowing
- Planned medium-term working-capital needs
The structure
How business loans can work
The exact process, eligibility rules and legal structure vary by provider.
Lender assessment
The lender reviews the business, affordability, credit profile, management plans and any proposed security or guarantees.
Offer and drawdown
If approved, the offer records the term, repayments, total cost, conditions and security before funds are released.
Lender assessment
What a provider may consider
- Historic and current trading performance
- Cash generation and ability to service repayments
- Management experience and the strength of the business plan
- Existing debt, available security and proposed guarantees
- The purpose of the loan and how it should improve the business
Prepare the evidence
Information that may support the request
- Latest accounts and current management information
- Recent business bank statements
- Cash-flow forecast covering the proposed loan term
- Debt schedule and details of existing security
- Contracts, quotes or transaction documents supporting the use of funds
Compare carefully
Points to understand before proceeding
- Compare the total amount repayable and all fees, not only the headline interest rate.
- Check whether the rate is fixed or variable and whether repayments match the business's cash-flow cycle.
- Understand early-repayment charges, financial covenants and what happens if a payment is missed.
- Take independent advice before granting material security or a personal guarantee.
Build the funding case
Present the need, evidence and repayment plan together
Fundry helps businesses organise a structured request for potentially relevant lenders to assess.
This guide provides general information only and is not financial advice or a recommendation. Product structures, eligibility, costs and terms vary by provider and remain subject to assessment. Review any offer carefully and seek independent advice where appropriate.