Business Loans

Business Loans can offer a cash amount paid back to the lender over an agreed term and are the most common form of commercial debt.

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What are Business Loans?

A Business Loan is probably the simplest and most familiar way to raise finance for most business owners. There can be more complex structures but usually business loans are fully amortising over a period of time with interest charged during that period (much like a mortgage). Cash is typically received at the beginning of the loan as a lump sum, and repaid in fixed instalments although payment holidays, interest only, rolled up interest and tranche repayments are seen on occasion when businesses require them.

Loans can be both secured and unsecured, with technology improvements over the last decade spawning a raft of unsecured lenders who rely largely on credit algorithms to underwrite deals. This can reduce complexity for customers who don’t want to offer security and also give an option for companies who do not have assets to offer.

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How Can We Help You?

Our frequently asked questions. Do you still not have the answer you need? Get in touch.

How much do Business Loans cost?

Business Loans interest rates can be as low as 1.9%, the reality is most are 4% and upwards without security. Cost is generally dependent on the age, profitability and credit score of your business as well as the size and term of the loan.

What security do I need to offer?

This depends on the type of loan, but unsecured Business Loans are now popular and require only a Personal Guarantee from a director or shareholder by way of security. Several lenders have historically offered loans with no security required at all, the most recent examples being those providing CBILS under the government’s COVID support scheme. Newer businesses or those with less trading history may need to offer property security or asset security.

Are there any other fees charged by loan providers?

This can vary but arrangement fees are common to cover the costs of setting up a loan. It is common for arrangement fees to total 3-5% of the loan amount, but can often rolled into the loan amount to spread the cost over the term of the loan. Occasionally there can be separate legal fees, exit fees or valuation fees and we can guide you on what you can expect.

What are personal guarantees and when are they needed?

Personal guarantees (commonly referred to as a PG) are an agreement between you & the lender. PGs are only enforced if the loan contract is breached and are sometimes limited or only applicable to part of the loan. Lenders use them as a form of security but also to ensure the guarantors’ co-operation in the event of a contract breach. It is sometimes possible to actually insure a guarantee so the policy pays out in the event of a guarantee being called in, protecting the guarantor. Ask us about this if you’d like some more information.

Am I able to repay my loan early?

Yes, in many situations lenders allow for early repayment of a Business Loan without additional fees. If this is important we can narrow our search to only those who don’t charge a settlement fee.

How long will the application process take?

Business Loans can be one of the fastest forms of funding. Typically lenders can make offers within 48 hours of full application (although our record is a few hours!). Payout is generally quite quick following approval so it is possible (if difficult) to get cash within 24-48 hours.

What information will you need to process my application?

Each lender can have different requirements but the minimum standard documents are typically bank statements, company accounts and directors/shareholders personal information.

Liquidity Club have been great because they have managed the funding process from start to finish. Liquidity Club is very attentive and professional and their involvement has freed up my time to enable me to focus on the running of…

Mike Burrows
Burcas Ltd

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Liquidity Club found the right funder to assist us with the cashflow in our business at a really important time, enabling us to continue growing. The speed and professional approach by Liquidity Club gave us the confidence to focus on…

Operations Director

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Liquidity Club was recommended to us. We invited them over to help us find the best finance options available for the future needs of our business. They very quickly found us a solution and was able to implement in a…

Ian Summerfield
Freight Management European Ltd

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Liquidity Club were so supportive and knowledgeable, they kept in contact throughout the process making sure we were informed and updated at every stage. They were committed to getting the best outcome for us and focused on reaching our goals.…

Debbie Polden
Director of The Skinsmith, UK distributor for Eminence Organic Skincare

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Liquidity Club really take the time to review all facets of a proposal with the client to ensure the right funding solution is delivered at the most competitive rate the market has to offer.

Keir Cox
Operations Director Purbeck Insurance

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The service provided by Will was second to none and a complete hassle-free service. We were over the moon and full access to funds within a few hours of acceptance! 10/10.

Business Owner

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I met Adam through a mutual contact. I was sceptical when he said he could deliver a funding for my business that my then provider couldn't. Less than 6 weeks later I had a new provider and a £4m facility…

Joe Amirthalingam
MD at Jolanka (UK) Ltd

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Pauls understanding of our business helped us quickly narrow down the most suitable type of finance and provider for our requirement. His professional and experienced approach and constant communication meant we could focus on our business, while the facility was…

Neil Clifton
MD at Cube Precision Engineering

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Cameron thank you for all hard work in getting me the finance. Compared to other companies you were very different in your professional personal approach, I was very impressed. I will be definitely be contacting you in the new year…

Building Services

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