Why now is the perfect time to borrow
Rates currently being offered by our panel of lenders
Unsecured Business Loan
Flexible Facility Business Loan
Secured Business Loan
Asset Finance Loan
5 Simple Steps to Funding your Business
We understand that every business is unique and It’s important to us that we find you the right funding - Which means our experts will need to have a quick 5min call to discuss your particular requirements.
Our State of the Art technology can match your business against the 100’s of potential options and facilities instantly. Allowing us to offer you a real quote, from genuinely eligible funding options.
Lenders will require supporting documents as evidence of turnover and performance. Connect via secure Open Banking connectivity or upload to your account.
Our iFunds Platform allows you to get on with running your business. Make the lender work for you and apply to multiple options. Allowing lenders to 'Bid Up' on your app, driving rates and fees down.
We’ll handle everything, including all contracts and documents and ensure you receive your funds fast. Your personal Lending Manager will always be on hand to answer any queries, or investigate further funding.
Find the Right Business Loan in Under 3 minutes with iFunds
Our iFunds technology is an Industry Leading Matching Platform that matches your criteria and searches over 200 lenders instantly.
We understand as a busy business owner your time is precious, and it typically takes around 3 short minutes to use our matching platform, to help you search and compare over 200 commercial lenders, enabling you to genuinely assess ALL the best options for your business, finding you a genuine offer and rate instantly.
“That’s 3minutes VS 180 Hours applying directly to each lender”
We’re unlike other ‘Comparison Sites’, we understand your need to assess the ACTUAL options available to you, and not just a marketing list of lenders… we use real technology to connect our systems and website directly into every lender… allowing us to be the only online broker to offer you rates instantly.
Why Use Think Business Loans?
We help you gain access to rates as low as 4.3%
Unsecured Business Loans from £5,000 to £1,000,000
Flexible working capital Facilities from as low as 0.8% per month
Over 85% of our applicants are eligible for funding
Gain access to funds in 24 hours
No Personal Guarantees required in some cases
Option to borrow against your card machine transactions
Exclusive products and rates only available through THINK
Asset Finance options available
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- Quickest type of funding.
- Unsecured loans are business loans that don’t require any security to offer a loan, and are more
- Largely based on a company’s performance, turnover and overall health (trading history, credit, net worth etc).
- Number of peer-to-peer (p2p) lenders offer 5 year unsecured business loans, as low as 4% APR.
- This product falls under a number of different names.
- The terms Flexible Facility, Business Overdraft, or working capital loan are all used to describe a number of products designed to aid short term cash-flow.
- Similar to an overdraft giving you access to cash on your terms and when you need.
- Only pay for the amount you borrow.
Secured Business Loans
- Secured Business Loans are loans or facilities secured against business assets, such as the current business premises or the businesses owners or guarantors home.
- Decreased risk is relative to the price and costings of the loan.
- Rates range from 1.28% right the way up to 18%
- ABL is essentially finance or re-financing of machines or anything considered a ‘valuable’ asset on a companies balance sheet.
- Asset lenders tend to specialise in different types assets so
- Shopping around is key to not over-paying
- It’s an industry often utilised by the manufacturing and engineering sectors.
- The term consists of a large number of long term and short-term business loan facilities
- Terms for Bridging Loans from 1-18mths
- Terms for Commercial mortgages up to 30years
- Rates from as low as 0.44%
Business Loan Providers
Since the 2008 financial crash, the alternative lending market has seen a huge surge in new lenders… with more and more banks, challenger banks and alternative cashflow providers entering the market,
It’s important we understand the differences with regards to criteria, amounts, repayment structures, and credit commitments, and how those nuances can be of real benefit or detriment to certain projects, depending on how and when you adopt various debt.
Below, we have broken down the main types of funders snd lenders out there right now, and what we think about each.
High Street Banks
- Banks and institutions have years of experience on the ‘new breed’ of lenders around.
- Banks will decline 8/10 business loan applications, and tend to only favour large, high yielding deals. We have seen recently, that whilst their risk reflects their demographic, their prices are not particularly competitive, with cheaper rates being found on the alternative market.
Peer-to-Peer (P2P) Lenders
- The new breed.
- Peer-to-peer Business Loans have been around for about 5 years
- Many preferring customer follows an online journey, which
- Results in lack of any real advice on the loan.
- Whilst to the borrower they seem and appear the same as any normal loan.
- Privately-run banks.
- Not particularly competitive.
- What they may lack in competitiveness, they then gain with their broader underwriting criteria.
- Will often take a creative look at your project, and be more likely to take a ‘gamble’ on a riskier projects.
How is Business Loan Interest Worked Out?
Business loans also consist of a variety of interest rate and costing structures, from monthly, to yearly, with depreciating interest and rolled up interest – all to take into account.
The structure of the interest and your repayments is an important factor to consider when you are applying for any kind of personal or commercial finance. Choosing the wrong type of loan of structure and for the wrong purpose can cost your business. Businesses often make the mistake of choosing what seems the simplest often, when they are in-fact, the costliest;
Below are the main Business Loan and Interest Rate Structures
- Structured depending on how long you borrow the money.
- Many facilities are built like overdrafts,
- If you draw £10000 at a 1.1% monthly interest rate you will owe £110 in interest in 30 days.
- If you kept the full £10000 out for 2 months the interest cost will raise to £220 (minus the previous repayment amortised)
- This structure is designed to give businesses more control.
- If your investment is long term, this really isn’t he facility for you
- Most 3-5yr unsecured term loans are based on APR.
- APR is the yearly cost of credit and worked out prior to facility being taken.
- If you borrowed £10000 for 12 m0nths at 10% you would owe £1000 in interest at the end of 12 months.
- Your monthly payments would be 12 x £910.67.
- Libor is the BoE’s base rate and recommended rate of interest.
- Banks usually charge an interest rate + Libor.
- Unsecured lenders do not do this, and work completely independently to the libor base rate
- Many loans (especially property loans) offer this option.
- Monthly payments being only the interest costs, and the capital repaid at the end of the term (bridging loans).
Is My Business Eligible for a Business Loan?
It’s important to understand what your business is, or could be eligible for, so that you can structure your own strategy and business plans around the eligible funders, amounts, repayments and products.
Our iFunds lender matching technology enables us to cover 18,000 data points in order to ensure an 85% accuracy against what your business is eligible for and the amount you could receive…
Below, we give a guide to the general points that commercial lenders will look at when underwriting your application.
What are Commercial Lenders Looking for in a Business
Its important to remember there is no ‘set standard’ criteria for business loans. Which is why shopping around is so vital;
Headline points lenders look out for:
- Turnover Vs Loan amount – 30% of your turnover
- Trading history – the longer the period would suggest experience and lowers risk
- No serious adverse – Settled CCJ’s will be ok
- Business profitability
- How much is taken out of the business each year in dividends
- Geographical Location
- Property Ownership – this usually affects the amount offered
Try iFunds for yourself, and get a gauge of what your business is eligible for: Try iFunds
Your Supporting Docs
Lenders will always require supporting documents as evidence of turnover and performance, and its important to be prepared for this, as delays once in underwriting can occur.
- Bank Statements (usually 6-12 months) – Find out about Thinks exclusive Open Banking Technology
- Last Filed Accounts
- VAT Statements (If VAT registered) – VAT statement guide
- Merchant Card Statements (If you take card payments)
- Credit details of all the directors and significant shareholders
Personal and Director Guarantees
Lenders will usually always require some sort of security or ‘collateral’ in order to feel comfortable enough to lend their money, which can be in the form of a physical charge placed on assets or even goodwill placed on the business based on turnover and trading history.
Be aware that there will often be some sort of legal contractual guarantee required in order to receive your business loan.
Personal Guarantees & Directors Guarantees
- A personal guarantee is an individual’s (in this case the directors of the business) legal promise to repay any and all debt.
- Providing a personal guarantee means that if the business is unable to repay the loan, the individual guarantor is then personally responsible for that debt.
- This enables the lender to comfortably lend to businesses with no assets, or only goodwill to lean on
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