Business Loan - How Much You Can Borrow And What Will Be The Interest Rate
A business loan is taken to finance a business whether small, medium or new. One can use this loan for a number of business purposes like buying a plant, paying off business debts, business expansion, purchasing equipment, machinery, raw materials etc. This loan is available in both secured and unsecured form. If you plan to take the secured business loan you have to offer collateral, mostly a residential property. For unsecured business loan, no form of collateral is necessary.
The amount you can borrow largely depends on three factors: your credit status, the value of the collateral you offer and your capacity to repay the loan. As a rule the loan amount ranges from £25,000 to £50,000,000. However, a high value collateral will enable you to borrow more than the highest limit mentioned here. An impressive credit record together with high value collateral will increase your chance of borrowing even more than that. The interest rate of business loan is decided once again by your credit status, your intention of offering or not offering collateral, and the term of the loan. A valuable collateral combined with good credit score will contribute to keep the interest rate low. In most of the cases, the secured business loan carries low interest rate. Availing unsecured business loan at low rate is tough but not impossible.
You can also avail a business loan minus high value collateral and a good credit. But for that you have to avoid the traditional lenders and approach those who offer customised loans. Lenders who offer personalised loans have specially crafted loans for those who neither can offer collateral nor have a good credit score. You can hunt such type of lenders easily via the internet.
Related Tags: business loans, small business loans, secured business loan, unsecured business loan
About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Adverse-Credit-Business-Loans as a finance specialist. For more information please visit at:www.adverse-credit-business-loans.co.uk
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