BLOG
7 Sources of Small Business Capital
Jun 29 2016
Darren Best
Six Funding Options
The traditional method for sourcing finance for your business would be to turn to banks to apply for business loans. But this isn’t your only option in today’s market, capital can come from anywhere. Here are six funding options:Banks
Banks have been offering business loans for centuries, and many claim they are still interested in helping grow small businesses in the UK. The big banks offer a range of different loans, with varying borrowing limits, interest rates, conditions and perks. Here’s a quick overview. [caption id="attachment_709" align="alignnone" width="685"] Image credit to: Shutterstock/ pixinoo[/caption] HSBC:- Small business loans available up to the value of £25,000
- Same day funding once approved
- Competitor interest rate match
- Repayment terms between 12 months and 10 years
- No charges for additional repayments
- Option to defer first payment with 3 months’ repayment holiday
- Fixed monthly repayments
- £100 arrangement fee
- Early repayment charge applies of 1 calendar month and 28 days’ interest
- Borrow up to £25,000
- 6 months’ repayment holiday
- Repayment terms from 1 to 10 years
- Choose repayment option (lower monthly repayments for longer terms and higher for shorter terms)
- Enterprise Finance Guarantee for aspiring businesses with insufficient security
- Borrow up to £25,000
- Pay-back terms up to 10 years
- No arrangement or security fees
- 1% discounted borrowing rates for Advantage Business customers
- Fixed rate loan
- Early repayment charge of two months’ interest
- Offers four loan types, here are two
- Base Rate Loan: interest rate varies on B of E base rate which sits at 0.5% currently, loan amount; £1,000+, loan term; 1 – 25 years and no early repayment costs.
- Fixed Rate Loan: negotiable interest rate, fixed for term between one and 10 years, loan amount; £1,000 to £50,000 and no early repayment costs.