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Business Loans
The only place for a business loan
We aim to ensure that we find you the best possible financial solution for your individual circumstances and by working with one of our team of Business Loan Advisors, we will take the time to fully understand your requirements and gather the appropriate information in order to move your application forward.
A business loan can be used for many different purposes as detailed below:
– Purchase a business
– Raise working capital within a business
– Finance the purchase of stock or equipment
– Pay for repairs
– Managing daily expenses
– Paying employees
– Starting a business
A business loan can be made available to a number of legal entities including limited companies, partnerships and sole traders on both a secured or unsecured basis.
Rates and terms of borrowing vary greatly depending on the type of business and its financial performance and whether the loan is secured or unsecured.
Loans are available to both start-up businesses and established ones, subject to a full assessment.
Another type of business loan that is relatively new to the market is known as ‘peer to peer’ lending or crowdfunding.
What is Peer-To-Peer Lending (P2P)?
P2P lending is also known as social lending or crowdfunding and is available for any of the following:
– Purchase a business
– Raise working capital within a business
– Finance the purchase of stock or equipment
– Pay for repairs
– Managing daily Expenses
– Paying Employees
– Starting a business
Traditionally, individuals and small businesses who want to apply for a loan would consult their bank and a decision would be made by a Bank Manager or as is often seen in the famous sketch “computer says no”. A bank would run extensive financial checks on the applicant’s credit history to determine if the entity would qualify for a loan and if yes, determine the interest rate that will be charged on the loan.
Individuals that want to avoid being charged high interest rates or that would otherwise be rejected for a loan application due to poor credit history, may opt for an alternative way of borrowing funds.
With peer-to-peer lending, borrowers take loans from individual investors who are willing to lend their own money for an agreed interest rate.
The profile of a borrower is usually displayed on a peer-to-peer online platform where investors can assess these profiles to determine whether they would want to risk lending money to a borrower.
A borrower might receive the full loan amount or only a portion of what he asked for from an investor. In the case of the latter, the remaining portion of the loan may be funded by one or more investors in the peer lending marketplace. In peer-to-peer lending, a loan may have multiple sources and monthly repayment has to be made to each of the individual.
P2P platforms connect borrowers to investors with attractive interest rates. For lenders, the loans generate income in the form of interest which can often exceed the interest amount that can be earned through saving vehicles, such as saving accounts and CDs. In addition, an investor is able to earn a higher return on his investment than he can get from the stock market through the interest payments he receives monthly from the borrower. On the other hand, P2P loans give borrowers access to financing that they may not have gotten approval for from standard financial intermediaries. Furthermore, a borrower gets a more favourable interest rate on her loan than one she would otherwise have gotten from a bank.
It is vital that whilst you concentrate on your business, you don’t get hampered by reams of paperwork and countless phone calls. We will act from the point of enquiry to the release of funds, taking care of negotiations with the lender and over-viewing all documentation ensuring you the best possible deal in the marketplace for your circumstances from the extensive panel of lenders we work with. 2XL Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority and is a member of NACFB so you can be sure you are dealing with trusted and fully regulated advisers.
If you would like to explore further any of the possibilities in this area then please do give us a call on 01625 421 976 or drop us an email with your enquiry details including name and contact number at info@2xlcommercial.com and one of our team of advisers will give you a callback.
