Loans for Ltd Company

Limited Company Loans – Access between £5000 and £5M

The right funding is key to the success of your UK limited company

Sourcing loans for a ltd company help UK business owners to manage cashflow and to grow their enterprise. A limited company is a type of business structure in the UK that is separate from its owners (known as shareholders) and has limited liability for its debts. As a result, a limited company can borrow money from banks and other financial institutions, just like an individual person can.

There are several types of loans that a ltd company can apply for, including:

  • Term loans: These are traditional business loans that are paid back over a fixed period of time, usually with fixed interest rates. Term loans can be used for a variety of purposes, such as purchasing equipment or property, or for working capital.
  • Overdrafts: An overdraft is a type of loan that allows a company to withdraw more money from its bank account than it currently has available. Overdrafts are typically used for short-term financing needs and can be used for unexpected expenses or cash flow gaps.
  • Invoice financing: This type of loan allows a company to borrow money against its unpaid invoices. The lender will advance the company a percentage of the value of the invoices, and the company will then repay the loan once the invoices are paid.
  • Asset-based lending: This type of loan is secured against the assets of the company, such as property, machinery, or equipment. The lender will assess the value of the assets and lend the company a percentage of that value.
  • Peer-to-peer lending: This type of loan allows a ltd company to borrow money from individuals or other businesses through an online platform. The interest rate and terms of the loan are set by the lender, and the company will repay the loan over a fixed period of time.

When applying for a loan, a limited company will typically need to provide financial information such as its credit history, financial statements, and cash flow projections. The lender will use this information to assess the company’s creditworthiness and determine the terms of the loan.

It’s important to note that ltd companies may face more scrutiny and have higher interest rates when applying for loans. Banks and financial institutions may also require personal guarantees from the company’s directors to secure the loan. Additionally, the company’s credit history and financial performance will be closely evaluated before loan approval.

It is also worth noting that the UK government has set up multiple schemes to support businesses during the COVID-19 pandemic, such as the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS). These schemes provide government-backed guarantees to banks and other lenders, making it easier for businesses to access finance.

In conclusion, limited companies in the UK can apply for a variety of loans to meet their financial needs, including term loans, overdrafts, invoice financing, asset-based lending, and peer-to-peer lending. However, they may face more scrutiny and higher interest rates than other types of businesses. Additionally, there are government-backed schemes available to support businesses during the COVID-19 pandemic. It is always recommended to consult with a finance broker like First Oak Capital before applying for a ltd company loan.

Loans for Ltd Company

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Matt Whiteman

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