Business Loans Secured: Unlocking the Potential for Your Business

June 27, 2023

Two business professionals shaking hands after securing a business loan

If you’ve found yourself asking, “What is a secured business loan?” or “Is a business loan secured or unsecured?”, you’re not alone. Navigating the world of business finance can be daunting, but at JPM Capital, we’re here to guide you through your journey.

What is a Secured Business Loan?

A secured business loan is a type of business financing where the borrower pledges an asset (like property, equipment, or invoices) as collateral. The loan is ‘secured’ against this collateral, providing the lender with some level of assurance that they can recover the money if the borrower defaults on the loan.

Secured vs Unsecured Business Loans

Unlike secured loans, unsecured business loans do not require any collateral. This could be a more suitable option for businesses without large assets but bear in mind, lenders often require a good credit history for such loans. This is where Bad Credit Business Loans can offer an alternative solution.

Remember: In business financing, there’s no one-size-fits-all solution. The best choice depends on your individual business needs and circumstances.

How Do Business Loans Impact Your Credit?

Business loans can have a significant impact on your credit, especially if you have a bad credit history. But don’t worry! At JPM Capital, we understand that every business has unique financial circumstances. That’s why we provide a variety of options, such as Small Business Loans and Alternative Finance solutions.

Where’s the Best Place to Get a Business Loan?

Based on the latest UK statistics, one of the best places to secure a business loan is through a financial institution that provides bespoke solutions tailored to your needs, like JPM Capital. We provide an array of solutions, including Working Capital Funding and VAT Funding, to support the growth and stability of your business. Whether you’re seeking to fund your tax obligations with Tax Funding or looking to grow with Refurbishment / Expansion Funding, our experienced team can help guide you to the most suitable funding solution.

Conclusion

In essence, secured business loans offer a reliable path for businesses to receive the funding they need to grow and thrive. By utilising assets as collateral, they can access larger loan amounts, often with more favourable interest rates. For more information on secured business loans, please visit our Business Loans page or get in touch with our friendly team.

FAQs

1. What is a secured business loan? A secured business loan is a type of loan that requires collateral, like property, machinery, or other business assets. 2. Is a business loan secured or unsecured? A business loan can be either secured (requires collateral) or unsecured (doesn’t require collateral but may require a good credit score). 3. Do business loans go on your credit? Yes, business loans can affect your credit. Timely repayments can improve your credit score, while late or missed payments can harm it. 4. Where’s the best place to get a business loan? The best place to get a business loan is at a reliable financial institution like JPM Capital, which offers a wide range of tailored business loan options. Discover more about our services and funding solutions by visiting our About Us page, exploring our diverse Case Studies, or reading insightful articles on our Blog. You can also find out who we fund here, or learn about our Partner Program if you wish to collaborate with us. 5. Can I apply for a business loan with bad credit? Yes, at JPM Capital, we offer Bad Credit Business Loans to support businesses that may have encountered financial difficulties in the past.

Personal Guarantee Insurance: Safeguard Your Business

June 21, 2023

Personal Guarantee Insurance: Safeguarding Your Business

personal guarantee insurance When it comes to securing business loans, there’s no shortage of challenges that entrepreneurs face, particularly for those dealing with bad credit. Bad credit business loans can be a lifeline for many, and having a strategy in place to manage risk is paramount. One such strategy is obtaining personal guarantee insurance.

“Just as you protect your business premises with insurance, you can also shield your personal assets through personal guarantee insurance.” – JPM Capital

Personal guarantee insurance, designed to offer a layer of protection for business owners, covers a percentage of the risk in case of a business default. This financial buffer safeguards your personal assets if your business is unable to repay the loan. For more information about business financial support, visit Gov.uk – Business Finance and Support.

Let’s break down the key components of personal guarantee insurance and how it aligns with various business funding solutions available on our platform, JPM Capital.

The Need for Personal Guarantee Insurance

Starting and running a business can be a risky endeavour. When you secure funding through avenues such as small business loans or alternative finance, lenders often require a personal guarantee. This means you, as a business owner, pledge your personal assets as collateral in the event your business fails to repay the loan. The Financial Ombudsman Service can help you understand your rights in this scenario.

Now, you may wonder, why would anyone take on such risk? The answer is simple: securing funds, especially with bad credit, can be a critical move for a business to grow, refurbish, or expand. But how can you mitigate this risk? This is where personal guarantee insurance steps in, ensuring that your risk doesn’t outweigh the potential reward.

How Personal Guarantee Insurance Works

The role of personal guarantee insurance is simple: it protects a portion of your personal net worth in case of a business default. Depending on the policy, coverage typically ranges from 60% to 80% of the guaranteed amount. This information is significant for those seeking refurbishment or expansion funding. Investing in your business’ growth can result in increased revenue in the long term, and personal guarantee insurance ensures that you’re able to make these ambitious strides without risking everything you own. For more detailed insights, check out resources from the British Business Bank.

Benefiting from JPM Capital’s Solutions

At JPM Capital, we offer a comprehensive range of funding solutions. From working capital funding to VAT funding, we ensure businesses have access to the financial support they need, regardless of their credit history. The Federation of Small Businesses (FSB) offers additional resources to aid small businesses in their journey.

Personal guarantee insurance can be a beneficial addition when utilising these services. For instance, VAT or tax funding often requires a personal guarantee. By securing insurance, you not only protect your personal assets but also improve the chances of loan approval by demonstrating your commitment to repaying the loan. If you find yourself struggling with business debt, the Money Advice Service can provide valuable advice.

Our experienced team at JPM Capital is dedicated to guiding you through the process and helping you find the right solution to meet your unique business needs.

Visit our blog to keep up-to-date with industry trends and to gain further insights into the benefits of personal guarantee insurance and other funding options. With the right tools and knowledge, you can navigate your business’ financial journey confidently and ensure its continued success.

“The most effective way to manage risk is to think about it in comprehensive terms and to integrate risk management into the fabric of an organization.” – Harvard Business Review

Through personal guarantee insurance, you are taking a proactive approach to risk management and safeguarding the future of your business. Reach out to the experts at JPM Capital to discuss how we can tailor our funding solutions to your specific circumstances. We’re here to help you succeed.

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