Business Finance

Need a finance injection to allow for growth? We have the right solution for you!

business finance types

There are two main types of business finance in terms of loans. Secured and unsecured.
Which option is right for your business will depend on many factors.

Secured Business Loans

A secured loan is backed by some type of asset your business owns. It is often referred to as asset backed lending for that reason. The term asset usually refers to tangible items such as commercial property, machinery, plant and vehicles. However, there are other types of secured lending. For example, invoice finance which uses your accounts receivable as security.

Unsecured Business Loans

An unsecured loan doesn’t use assets to secure the finance and, therefore, a Personal Guarantee from one or more of the company’s Directors will be required.

Lenders will look to ensure the company has been trading for a minimum of two years and has filed at least one set of accounts. They will want to see a balance sheet which shows the company has the ability to pay back the loan repayments. They will also require background and credit checks on the Director(s), as well as the company itself.

An unsecured loan can be used for many different business purposes, including paying VAT or Corporation Tax, buying stock, moving premises, aiding cash flow, employing additional staff… as well as a wide range of other things.

Loans can be up to the value of £500,000 over a maximum term of 60 months and there is the option for early settlement with no penalties.

Which type of loan is right for you?

This will depend on your business type, the stage of growth you are at and a whole other host of factors. It is often useful for us to have a chat about what is leading you to look for a loan, so that we can provide you with options.

Why choose Spire Finance Solutions for your Business Finance?

We have been helping businesses secure finance for many years. We understand the requirements of the finance companies and we understand business. We have helped companies at every stage of growth secure the right financial solution for them. We also know that requirements change over time and so will work with you to secure the right business finance whatever stage your company is at.