It may not be difficult for a salaried person to hire a loan
because he can convince the lender to repay the installments from his fixed
regular income. However the task is quite challenging for business people,
especially small businessmen. These loans require extensive documentation and
proofs etc. in execution. The loan seekers can go for secured as well as
unsecured types of loans.
Those who possess personal or business assets of good value can go for a
secured business loan by mortgaging their assets. They have to pay lower
interest rates because they are lowering the risk of financer by pledging
collateral. So financers offer more convenient and favorable terms to the
borrowers. A poor credit score also affects the rate of interest charged by
The unsecured type business loan also called cash advance loan is a suitable
option for those, who need money to fulfill their small day to day needs. Here
collateral is not required and the loan seekers save a lot of time and effort
to carry out complicated process of property assessment etc. These loans are
small in amounts and interest rates paid by borrowers are higher in this
Not only setting up a new venture, but up gradation and modernization from time
to time also requires financial assistance for a person to be a successful
entrepreneur. In addition to investment in raw materials, supplies and
inventory etc, the loan seekers can include in their plans some important
things like hiring or purchasing a good business location, construction or
renovation of the office, buying equipment and hiring manpower etc. The basic
eligibility conditions for these credit programs are briefed as below:-
* The applicant should be above 18 years old with a valid citizenship of UK.
* His business should be operative for at least a year and should be generating
some net profit every month.
* Financial statements are not mandatory in case of cash advance but for
business loans, the borrower has to enclose bank statements of 2 to 3 years.
The small , also called micro loans are in the range of 3000 to 35000 UK pounds
depending upon the turnover, annual net profits etc. The approval of loan
mainly depends upon an effective and promising business proposal. The previous
credit record of loan seeker is also taken into consideration. Credit
information includes credit card debt , personal loans, movable and immovable
property, borrower’s bank statements and income tax returns etc. The applicants
with good credit record generally do not come across troubles in loan sanction.
However those with bad credit history can go for cash advance loan in place of
small business loan. The processing time for cash advance loan is faster and
within 3 working days.
Addy Roy is an author of Loans n Finance. For more information about and