What are the different business loans available?

Business loan types

As part of business loans, there are a variety of options including unsecured business loans, secured business loans and working capital loans that are all tailored to different business types, sizes and industries.

Unsecured business loans

Unsecured business loans provide funding to businesses without the need of collateral. The loan is granted based upon the creditworthiness of the borrower; therefore, an unsecured loan can be a great option for business who do not own many tangible assets or would rather not use business assets against the value of the loan.

Revolving credit facility

A revolving credit facility is a short-term form of finance that allows a business to withdraw a select amount through a line of credit, that can be accessed at any time and can be withdrawn on multiple occasions. Interest is only paid on the actual amount withdrawn and not the maximum amount able to be withdrawn.

Small business loans

Small business loans are designed to meet the specific requirements of a small business. This type of loan is often unsecured, meaning that collateral does not have to be secured against the loan, ensuring they can maintain flexibility in their operations, and suiting a business that may not own many high value, physical assets.

Working capital loan

A working capital loan is a short-term finance facility aimed at businesses looking to pay day-to-day business expenses. This ensures that businesses can maintain cash flow and provide sufficient capital to cover daily or unexpected business costs, meaning the business can run smoothly, especially in times of growth or seasonal changes.

Secured business loans

A secured business loan is a product where a business asset, usually property, is used as security to receive funding. A valuation is required to determine whether the value of the property is enough to back the loan, with up to 75% of the assets value normally able to be secured.

Tax loan

A tax loan allows a business to divide their tax payments into manageable monthly payments. Through securing a tax loan, your business can cover corporate tax, income tax, VAT and insurance cover with a plan that is tailored to your business’ specific financial circumstances, ensuring your tax bill can be paid off.

Management buy-out

A management buyout provides businesses the opportunity to sell either all or part of the company to the management team. Management buyouts (MBOs) provide a way for business owners intending to leave the business, or step away from daily operations, to do so while selling to a team they can trust.

Professional business loan

A professional loan is specially designed for business operating in professional services, including accountants, solicitors, law firms, and medical practitioners. This loan type fits in with the security profile and the finance cycles of this category of business, fitting in with the exact requirements for a professional service business, where regular loans may not suffice.

How to apply for a business loan

MAF Finance Group can compare offerings from a comprehensive range of banks and alternative funders to identify the solutions best suited for your business.

If you would like further information or to get a quote, fill in the form and we will get in touch. If you want to speak directly to us, call us on 0115 958 6872 and a member of our team will be happy to speak with you. Alternatively, email us at [email protected].