Posts Tagged ‘Business Loans’

Using Credit to Boost Your Business: A Comprehensive Guide

July 7, 2023

Two entrepreneurs discussing business expansion strategies using credit options

In a 2019 report by the British Business Bank, it was estimated that 44% of UK small and medium-sized enterprises (SMEs) sought some form of external finance. While businesses need capital for different reasons, it’s undeniable that credit plays a crucial role in business growth and stability. In this article, we’ll explore how credit works, its benefits, pitfalls to avoid, and how businesses can use credit to their advantage.

The Power of Credit: Fueling Business Growth

Credit is essentially borrowed money that you can use to invest in your business, with the understanding that it will be paid back with interest over time. This borrowed money can be used to expand operations, purchase inventory, hire personnel, and more. Moreover, business loans can act as a buffer during lean times, ensuring that your business remains operational despite financial hiccups.

The Crucial Question: Why Borrow Money for My Business?

The British Business Bank reports that the demand for external finance is highest among businesses with growth ambitions. This is because credit allows companies to leverage current success for future gains, fuelling expansion and innovation.

Navigating Bad Credit: Is it Possible to Secure a Business Loan?

A common concern for many business owners is the impact of bad credit on their ability to secure loans. Bad credit refers to a poor history of managing debts, which lenders might view as a red flag. However, it’s worth noting that it’s still possible to secure bad credit business loans.

Assessing the Costs of Bad Credit Business Loans

While the costs of bad credit business loans can be higher than traditional loans, they offer the necessary funding to businesses that would otherwise struggle to access finance. In fact, a 2019 report found that 26% of SMEs who had previously been rejected for finance applied for and successfully secured a bad credit business loan.

The Journey to Credit: What Do You Need to Prepare?

Before applying for a loan, it’s important to assess your business’ current financial standing. You must be able to answer crucial questions such as:

Understanding the Costs of Credit

This could range from interest rates to origination fees and more. It’s crucial to have a full understanding of these costs before you proceed with a loan application.

Gauging Your Repayment Capability: Do You Have Enough Cash?

Assess whether your current cash flow can sustain loan repayments. Failure to do so could potentially lead to more financial complications.

Securing Your Loan: What Security is Needed?

The type of security required depends on the loan type. Some loans may require collateral, like property or inventory, while others might require a personal guarantee.

Exploring the Duration: How Long Does It Take to Secure Credit?

The time to secure credit varies depending on the lender, loan type, and the business’s financial status. Some loans can be approved in as little as 24 hours, while others may take several weeks.

Choosing the Right Funding Solution for Your Business

Every business has unique needs, so it’s important to find a loan that fits your specific circumstances. Fortunately, there are numerous types of business loans and financing solutions available, from small business loans to alternative finance, working capital funding, and refurbishment/expansion funding.

Conclusion

Borrowing money for your business can provide the resources necessary for growth, development, and stability. Whether it’s a small business loan or bad credit business loan, credit can be an effective tool to fuel your business ambitions. While there are costs associated with borrowing, the benefits often outweigh them when loans are managed responsibly. The key lies in understanding your business needs and credit options and making informed decisions.

JPM Capital: JPM Capital offers a range of funding solutions for businesses of all types and sizes.

Same Day Business Loans: A Lifeline for Your Business

July 4, 2023

Running a business is a test of resilience and adaptability, especially when it comes to finances. For businesses in the UK, urgent funding needs can arise anytime, be it for growth, unexpected expenses, or cash flow issues. This is where same day business loans come into play.

Infographic detailing the eligibility requirements for same-day business loans.

 

Why Businesses Need Fast Funding

Let’s face it. Even the most meticulously planned budgets can go awry due to unexpected circumstances. According to a survey, nearly 50% of UK small businesses face financial hurdles every year. Consequently, there’s an increasing demand for fast and reliable financial solutions.

“Money, it turned out, was exactly like sex, you thought of nothing else if you didn’t have it and thought of other things if you did.” — James Baldwin

How Fast Can You Get a Business Loan?

Traditionally, getting a business loan could take weeks or even months. However, at JPM Capital, we understand the urgency, and our streamlined application process ensures you receive funding on the same day.

For instance, our bad credit business loans are designed for businesses facing credit challenges. Our other services such as VAT funding or Tax funding can also be secured swiftly, offering a financial lifeline when most needed.

What is the Easiest and Quickest Loan to Get?

While it depends on your specific circumstances, our small business loans are among the easiest and quickest to get. With minimal paperwork and flexible eligibility criteria, they serve as the ideal solution for SMEs in need of urgent funding.

Alternatively, alternative finance solutions like invoice financing or merchant cash advances can provide funding in as little as 24 hours. These are particularly beneficial for businesses with strong sales but struggling with cash flow.

Which Loan Company is Easiest to Get?

At JPM Capital, our philosophy is to offer straightforward and swift funding solutions. We focus on your business potential, not just credit scores. So whether you need working capital funding or refurbishment/expansion funding, our team is ready to assist.

“Success usually comes to those who are too busy to be looking for it.” — Henry David Thoreau

Eligibility Requirements for Same-day Business Loans

Same-day business loans provide rapid access to funds, but they do come with specific eligibility requirements. Here’s what you typically need to qualify:

  • Business Age: Most lenders, including JPM Capital, require your business to have been operating for at least six months.
  • Monthly Revenue: Your business should have a minimum monthly revenue—some lenders stipulate at least $15,000 in monthly bank deposits.
  • Credit Score: Certain lenders require a minimum personal credit score of 500 to qualify for small business loans. Remember, though, that bad credit business loans are also available.
  • Annual Revenue: Some lenders ask for at least $100,000 in annual revenue.
  • Other Requirements: Additional documents, such as tax returns, bank statements, and business plans, may also be required.

Please note that eligibility requirements may vary depending on the lender and the type of loan. It’s best to check directly with the lender for their specific eligibility requirements.

Infographic illustrating the impact of credit score on same-day business loan interest rates.

For instance, companies such as Shield Funding offer same-day business loans with interest rates as low as 5-15%. Even their bad credit business loans start at 12% interest. However, interest rates for such loans can range from 25.00% and upward, depending on the lender and the borrower’s credit risk.

Remember, other factors like cash flow and revenue can also influence your loan’s interest rate. Therefore, it’s essential to compare interest rates and fees from different lenders to choose the best loan for your business needs, especially if you have a lower credit score.

Impact of Credit Score on Same-Day Business Loans Interest Rate

Your credit score can significantly influence the interest rate for same-day business loans. Generally, borrowers with higher credit scores qualify for lower interest rates. Conversely, borrowers with lower scores may face higher interest rates and fees.

For instance, companies such as Shield Funding offer same-day business loans with interest rates as low as 5-15%. Even their bad credit business loans start at 12% interest. However, interest rates for such loans can range from 25.00% and upward, depending on the lender and the borrower’s credit risk.

Remember, other factors like cash flow and revenue can also influence your loan’s interest rate. Therefore, it’s essential to compare interest rates and fees from different lenders to choose the best loan for your business needs, especially if you have a lower credit score.

Lenders Offering Same-Day Business Loans with Lower Interest Rates

Yes, some lenders provide same-day business loans with lower interest rates for borrowers boasting good credit scores. Here are a few:

  • BlueVine: They offer a line of credit with interest rates as low as 4.8% for borrowers with good credit scores.
  • Fundbox: Fundbox’s line of credit starts at 4.66% for borrowers with good credit scores.
  • OnDeck: OnDeck’s line of credit starts at 13.99% for borrowers with good credit scores.
  • Shield Funding: Shield Funding offers same-day business loans with interest rates as low as 5-15% for borrowers with good credit scores.

Remember, these rates can vary depending on the lender, loan type, and your creditworthiness. Hence, it’s crucial to compare rates and fees from various lenders to secure the best loan for your business needs.

Conclusion

In a world where time is money, same-day business loans offer a crucial lifeline for businesses in need. JPM Capital is committed to providing fast, efficient, and tailor-made funding solutions to ensure your business doesn’t miss out on opportunities due to financial constraints. To know more about how we can assist your business growth, get in touch with us here.

FAQs

Can you get a business loan straight away? Yes, at JPM Capital, you can receive a business loan on the same day of application.

How fast can you receive a business loan? You can receive a business loan as fast as the same day of application with our streamlined process.

What is the easiest and quickest loan to get? Our small business loans are typically the quickest and easiest to get, with minimal paperwork and eligibility criteria.

Which loan company is the easiest to get a loan from? JPM Capital prides itself on offering straightforward and quick loan approvals, making us one of the easiest companies to secure funding from.

For more financial insights and solutions, don’t forget to visit our blog and stay updated with the latest trends in business financing.

How to Get a Business Loan: Your Guide to Funding Solutions

July 3, 2023
Starting a business or seeking to grow an existing one often necessitates additional funding. Whether it’s for hiring new talent, purchasing essential equipment, expanding your operation, or even just smoothing out cash flow, getting a business loan in the UK can be an invaluable lifeline. However, you might be asking yourself: “Is it hard to get a business loan in the UK?” In this article, we will guide you through the process, options, and potential challenges, with a focus on JPM Capital’s wide range of funding solutions.

Is it Hard to Get a Business Loan in the UK?

While obtaining a business loan in the UK can seem daunting, the process has been significantly streamlined thanks to alternative finance options. In the past, traditional banks were the go-to for small business funding, but their strict criteria often made it difficult for businesses with poor credit history or no assets to secure a loan.

With the rise of alternative finance options, businesses can access a variety of tailored funding solutions, including bad credit business loans, small business loans, and specialised funding for VAT or tax payments, making it easier than ever to find the perfect financial solution.

According to a 2022 UK Small Business Finance Markets report, alternative finance providers supplied 32% of new finance to smaller businesses, illustrating the growing reliance on these non-traditional funding solutions.

How Do I Get Money to Start a Business?

Kick-starting a business requires capital. Here are three common ways to raise funds:

  1. Personal Savings: A high percentage of startups are self-funded. However, this approach may not be suitable for everyone, especially if you’re looking to start a capital-intensive business.
  2. Friends and Family: Another common method of raising startup capital is borrowing from friends and family. While this can be a convenient way to raise funds, it could potentially strain personal relationships.
  3. Business Loans: Through institutions like JPM Capital, entrepreneurs can access business loans designed to help startups hit the ground running.

If your business has specific needs, like needing to pay VAT or taxes, funding options like VAT funding and tax funding can provide a much-needed cash flow injection.

How Long Does It Take to Get a Business Loan in the UK?

The length of time it takes to secure a business loan in the UK can vary greatly, depending on the type of loan and lender. Traditional banks can take weeks or even months to approve a loan. However, alternative lenders like JPM Capital can often approve loans in as little as 24 hours.

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

The best place to secure a business loan depends on your business needs and circumstances. If you require funds for business expansion or refurbishment, Refurbishment/Expansion Funding might be an ideal choice.

Perhaps your business needs to boost its working capital during a lean period. In this case, Working Capital Funding could be your best bet.

Businesses in specific niches can also find tailored funding solutions. For example, a cryotherapy business like CryoBurst might require specialised equipment. A lender who understands the specific needs and challenges of this industry will be in the best position to offer the most suitable funding solution.

Conclusion

Securing a business loan in the UK can be straightforward and efficient, thanks to the variety of funding solutions offered by alternative finance providers. Whether you’re starting a new business, dealing with a bad credit history, or looking to expand, there’s likely a loan product out there tailored to your specific needs. Remember, choosing the right funding solution for your business is a critical step towards its success.

FAQs

  1. Is it hard to get a business loan in the UK? It can be challenging to secure a business loan from traditional banks, especially if you have a poor credit history or lack collateral. However, with alternative finance providers like JPM Capital, getting a business loan can be a straightforward process.
  2. How do I get money to start a business? Common ways to raise startup funds include personal savings, borrowing from friends or family, or securing a business loan from a lender like JPM Capital.
  3. How long does it take to get a business loan in the UK? While traditional banks can take weeks or months to approve a loan, alternative lenders like JPM Capital can often approve loans in as little as 24 hours.
  4. Where’s the best place to get a business loan? The best place to get a business loan depends on your specific business needs and circumstances. JPM Capital offers a variety of funding solutions, including bad credit business loans, small business loans, VAT and tax funding, and more.

Personal Guarantee Insurance: Safeguard Your Business

June 21, 2023

Personal Guarantee Insurance: Safeguarding Your Business

personal guarantee insuranceWhen 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.

To discuss funding today please fill out our get a quote form
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Call 01244 450870

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