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Business loan comparison
Compare business loans
Compare business loan rates and lenders
Business loans for cash flow, expansion and more
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compare business loans
At Bionic, we use smart technology to help make business comparison a whole lot easier. And the team at Think Business Loans, the finance partner of Bionic, do the same for business loans comparison.
As soon as they know a bit about your business and what you need funding for, they’ll use smart data and state-of-the tech to match your business against thousands of potential lenders and finance options.
As part of the comparison, you’ll be shown your eligibility status and amounts available. We’ll run a soft credit check to do this, so as not to affect your credit score. You just need to choose your preferred lender, and we'll take it from there. If you proceed with the application, your lender will run a hard credit search before making a decision. A record of this search will appear on your credit file.
Think only works with responsible lenders, and so you’ll need to give evidence of your business's turnover and affordability for underwriting purposes. Again, smart technology is used to help make this as easy as possible – simply upload your supporting documents or connect via OpenBanking for a decision.
Once everything is underway, you can check your application using the Think Business Loans’ online client portal. This means you can stay updated on the status of your application and communicate directly with lenders. Apple users can also get updates using iOS app.
How much does a business loan cost?
The cost of business finance depends on the type of loan you take out, the lender you borrow from, and the current circumstances of your business. The rates you're offered depend upon the type of risk you pose to the lender. This risk is broken down into the following categories:
- Category A+
You have clean business and personal credit files, profitable. Trading 5+ years. - Category A
Clean personal and business credit, healthy profits, trading history 2+ years. - Category B
Some minor issues on your credit file in the past, but good recent performance. - Category C
Recent credit problems, such as CCJs (settled) or any missed payments. - Category D
Bad personal credit, but an overall good business. CCJ’s (unsettled) or defaulted payments.
Get in touch with the tech-enabled team at Think Business Loans for a personalised business loans comparison.
What are Commercial Lenders Looking for
Although there’s no ‘set standard’ criteria for business loans, lenders will usually look at the following before deciding whether to lend to you:
- Turnover vs Loan amount (ideally it will be 30% of your turnover)
- Trading history over the last 18 months – this suggests experience and lowers risk
- No serious adverse credit – Settled CCJ’s will be entertained if the business is profitable
- Business must be based in the UK
- Are the directors homeowners? – this can affect the amount offered
Ideally, lenders will need to see one or more of the above points being met, but we work closely with our panel to help ensure we can match your business with the right one.
What types of business can take out a loan?
Think can compare business loans for a range of businesses across all industries, including microbusinesses, small businesses, and larger companies. Here are some examples of the businesses we can find finance for:
- Agriculture - Farming equipment isn’t cheap and can quickly become outdated by newer technology. Farmers can get finance for a range of needs, including expansion, new equipment and more.
- Dental Practice Finance Solutions - Whether you are looking to buy a new practice, expand your existing one, or invest in new equipment, we can help you find finance to fit your needs and circumstances.
- IT Software and Technology Finance - The speed at which technology is always developing puts pressure on businesses to invest in cutting edge hardware and software. Our tech-enabled team can help you find the right finance.
- Nursing & Care Homes - Although very rewarding, care homes can be costly to run, particularly when you consider the level of care and medical technology needed to help residents. We can help you secure the finance you need.
The tech-enabled team at Think can take the stress and worry out of finding the right type of finance and the right lender.
What lenders do you compare?
Our finance division over at Think work with a panel of trusted lenders to find the right finance solution for your business, including high street banks, challenger banks, and alternative lenders.
What are high street banks?
High street banks are large retail banks with branch locations across the country, and maybe across the world. As the name suggests, these banks have a high street presence, and include familiar names like RBS and NatWest, Lloyds and Bank of Scotland, HSBC, Santander, Clydesdale, and Metro Bank.
High street banks offer a range of business finance options, such as commercial mortgages, asset finance, secured loans, unsecured loans, factoring and invoice finance. The amount you can borrow from a high street bank will depend on the type of loan you want, your credit score and your circumstances.
Although high street banks like to offer competitive rates, it’s worth comparing what’s on offer from challenger banks and alternative lenders.
What is a challenger bank?
Challenger banks are smaller, less well-established banks that don’t have a high street presence. But just because you’ve never heard of them, it doesn’t mean they’re not a viable option. We only work with reputable lenders, and in order to be defined as a ‘bank’, the company must be authorised to accept retail deposits by the UK finical regulator the Prudential Regulation Authority (PRA).
Challenger banks can often only be approached via an intermediary or finance broker, and our close working relationship with our panel of lenders means we may be able to negotiate favourable rates for your business.
What are alternative lenders?
Alternative lenders are those that work outside of the normal banking system, such as peer-to-peer (P2P) lenders. P2P lenders bypass banks by using a lending platform to directly match with borrowers.
Is your business eligible for a commercial mortgage?
Commercial mortgages are big deal for both the lender and the borrower, which means the lending criteria is usually robust. Although eligibility checks vary between lenders, you’ll most likely need to meet the following conditions:
- A good business credit score – Although not always a deal-breaker, having a good credit score will help your application for a commercial mortgage. Some lenders will accept applications from businesses with a bad credit rating, but these will come with higher interest rates to reflect the added risk to the lender.
- Evidence you can afford to pay a deposit alongside the repayments - Commercial mortgages usually need a deposit of between 20% and 40% of the loan amount. You might need proof of projected income as evidence that you can afford the deposit and repayments. This might take the form of a financial health check that looks at cash flow, general income, existing debts, credits, and assets.
- Proof of income – This can be in the form of salary, self-employment, or even rental income.
It might also help your application if you’re a homeowner.
Business finance FAQs
To help you understand more about finding the right business loan, here are the answers to some of our most frequently asked questions.
How long does it take to get a business loan?
All business loans are subject to credit and affordability checks, but if your application is successful, you could get your funds within 24 to 36 hours. The timing can vary depending on the type of loan you’ve applied for. Secured loans, for instance, often take longer to process.
To make sure the application process runs as quickly and smoothly as possible, it helps if you can get any supporting documents across as quickly as possible.
How much can I borrow?
The amount you can borrow will depend on your credit score and the affordability of your business loan. Think will compare a range of business loans and talk you through your options to help you find a loan that fits your needs and budget.
What rates do you offer?
The rate you’re offered will vary according to your business credit rating, how much you want to borrow and for how long, as well as the lender and type of loan you choose. Get in touch with Think’s tech-enabled team for a personalised business loans comparison.
What is Open Banking?
Open Banking is a clever piece of tech that allows you to share your basic bank account information with lenders who will use it as part of their underwriting process (this is when they work out how much a lending risk your business is before making a final decision on whether to lend to you).
Only regulated third-party providers can access Open Banking services. For more information, check out the Open Banking website.
Can I repay my business loan early?
This will depend upon the type of business loan you have taken out and the lender providing it. Although some lenders are flexible, others might insist you stick to the fixed monthly repayment schedule.
If you do repay early, you’ll be given a settlement figure which will usually be for more than the amount you owe, as the lender will want to recoup some of the interest repayments it will miss out on as you’re not taking the loan over the full term.
If this is a concern, please tell your lending manager and they will be able to help.
Do I have to take out a business loan if my application is accepted?
If your application is accepted, you’re not under any obligation to take out a business loan until you’ve signed the credit agreement with your lender. But bear in mind that when you complete a full application with a lender, a record of your application will appear on your business credit file. If you make too many applications in a short space of time, this can have a negative impact on your credit score.
Why use Bionic instead of going to the lenders directly?
To help you find the right business finance, Think will compare business loans from a panel of trusted lenders. If you were to go to each directly, that could take days of work and risk damaging your credit score, as not all will quote for finance without first running a credit check.
But Think does things differently. Lending managers are equipped with cutting-edge tech to compare loans and help you find the right one for your business.
Will my credit score be affected?
Think will usually run a soft credit check when comparing loans for your business. This helps to get a better idea of your circumstances without affecting your credit score. If you take the application further, your lender might ask for a full credit check, which will be noted on your credit file. This will affect your credit score but will only ever be done with your permission.
If you have an apple device, you can check your credit score for free by downloading the Think Business Loans app. Checking your credit score through the app won’t affect your score.
Do I need to use my house as security for a business loan?
Not necessarily. Think compares a range of secured and unsecured business loans. If you take out an unsecured business loan, you don’t need to put anything up as security. The variety of secured business loans compared means that you may be able to put up assets or future earnings as security.
Can you help if I have bad or adverse credit?
Yes. Not all businesses have an A+ credit rating, and your financial situation can sometimes be affected by things that are completely out of your control. If you have any concerns about your credit report, whether you think you have a bad credit score or you’re worried there could be some issues affecting it, let your lending manager know and they’ll try to find a suitable solution.
Can I take out more than one business loan?
This will depend upon the circumstances of your business, the type of loan you’re after, and the amount you want to borrow. Different loans come with different lending conditions and are available for different needs, which means you may be able to take out more than one. If, for instance, you’ve taken out a secured loan for expansion, but you run into cashflow problems, you might be able to take out a working capital loan or invoice financing to help with these short-term needs.
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