If you run a limited company, then knowing how to finance your business at its various life-stages is essential in building a successful firm.
- Limited Company Loans
- A limited company loan is a loan for companies that are incorporated with Companies House.
Range of limited company financing
Limited company loans are now offered by non-traditional lenders, who are specialists in small business funding. These so-called Altfi (alternative finance) providers emerged during the recession to give the UK’s limited companies funding options when banks clamped down on lending to small businesses due to changes in banking regulation.
Need a short-term small business loan?
A limited company loan doesn’t mean having to sign up to a lending agreement for years ahead, or putting your company collateral at risk by borrowing large amounts through asset financing.
Let’s say you want to take advantage of a great deal on stock but you can’t buy anything without an injection of cash. Or you need to recruit a new employee to help complete a new project that’s due to begin in a couple of months’ time. You could use an unsecured loan to fund such business activity – and there are plenty of options out there.
It’s ideal for small business borrowing, although it tends to carry a higher interest rate than secured lending since the risk to the lender is higher. Unsecured lending also suits the needs of both limited companies and startups with a short credit history or bad credit score. However, one thing to note is that limited company directors or shareholders may each be asked to provide a personal guarantee.
As soon as I contacted Fleximize they were on the case from the word 'go', with e-mail and telephone communications. What impressed me the most was the understanding of our business model; they could see how much we have progressed and were happy to offer us the funding to further expand.
Stuart, owner of SDM Productions
Flexible business loans
Small businesses ideally need flexible arrangements when it comes to business loans, since they often need to respond to the markets quickly, and this has an impact on how they run their business. Each lender offers something different, but limited companies can borrow up to £500,000 from Fleximize, over a term of one month to 48 months.
It's also worth looking at the Revenue Advance loan, which is the most flexible option for small limited companies, and only available through Fleximize in the UK. This unique borrowing method is great for seasonal businesses and retailers, who experience peaks and troughs in income throughout the year.
Unlike other business loans, you only pay back what you can afford. For example, if you borrow £25,000, your monthly turnover determines your loan term and your payments will align to an agreed percentage of your monthly sales. Therefore, if your turnover is £50,000 for one month and you have agreed to repay 10% of your monthly sales, you would pay £5,000. If it goes down to £45,000, you pay £4,500. This continues until the agreed amount is repaid.
They were quick, thorough and their customer service was simply fantastic. As a seasonal business they have really helped us out and I would recommend them highly to any business looking for help with their finances. Polly, owner of Nabbd bridal shop
Quick business loans
When you’ve identified the amount you want to borrow, the repayments and terms will be agreed with a Fleximize relationship manager, who makes sure you’re taking out an affordable business loan that’ll benefit your business' growth. To make things even easier for small businesses, Fleximize doesn’t charge early repayment fees, and offers fee-free repayment holidays and loan top-ups.
Not only that, but Altfi lenders let you apply online, making the process much quicker and easier than lending via the big banks.
Questions about limited company loans?
To find out more, take a look at Fleximize’s FAQs, or get in touch with the team on 0207 100 0110.
Find time to also check out the many other types of business funding like crowdfunding and peer-to-peer lending, and even government-run schemes. There’s some great information in The Ultimate Guide to Business Funding.
Click on the Apply Now button below to find a flexible limited company loan, designed especially with your business needs in mind.