Business Loans FAQ’s
Q1. How can a Bizniz Loan help my business?
A1. The reassurance of a fixed monthly repayment can make it easier to plan your business. Available working capital can help with your cashflow, help pay outstanding invoices, help fund a future contract or expansion.
Q2. How do I qualify for a Bizniz Loan?
A2. To qualify for our Bizniz Loans, you must be a limited company and ideally been trading for 18 months or more. If you are VAT registered, it can be very helpful if you have made and can provide your last 5 VAT returns. We will normally require copies of your most recent accounts and for larger loans, interim management accounts will certainly help.
Q3. How easy is it to get approved for a Bizniz Loan?
A3. If you can provide the documentation we ask for, the process is relatively simple. Decisions are made on the basis of company and director background, future forecasts and most importantly, your ability to repay without adversely affecting the performance of your business.
Q4. Can I use my funds for any purpose?
A4. Yes. Any legitimate purpose is ok. Previous borrowers have used their Bizniz Loan to fund new contracts, fund general cashflow as they wait to get paid by suppliers, franchisees have used their cash to add additional outlets or territories. As long as the funding helps your business to grow.
Q5. How much does a Bizniz Loan cost?
A5. Each application is judged on it’s own merits. We have to consider the risk profile of your company and the creditworthiness of the directors. As a guideline, however, the rates offered tend to range from 1.75% per month to 3.0% per month.
Q6. How much can I borrow?
A6. You can borrow between £5,000 and £250,000. Bear in mind that our loans are usually designed to be repaid over 12 months (up to 24 months in some cases) so you will have to demonstrate the ability to repay your loan plus interest in that period.
As a rough guide, you should be able to borrow about 10% of your annual turnover.
Q7. How long can I borrow for?
A7. Anywhere between 3 months and 12 months but we can sometimes offer 18 to 24 months.