Business loans, priced properly and explained before you sign.
A lump sum, repaid over an agreed term. The most straightforward way to fund a purchase, a project or a gap — provided the term and the security are right for your situation.
A set amount, a set term, a payment you can plan around
A What this meansA set amount borrowed and repaid over a fixed period in regular instalments. The most straightforward form of business borrowing. gives you the money upfront and takes it back in monthly instalments over anything from six months to ten years. Unsecured loans are quicker and rely on your trading record; secured loans are cheaper and rely on property or assets standing behind them.
The decision that costs businesses money is not usually which lender — it is which term. Stretching a two-year problem over five years reduces the monthly payment and increases the total by thousands. We will show you both figures before you commit.
When a loan is the right shape of money
Loans suit defined costs with a defined payback. They suit ongoing cash-flow swings much less well.
Typically a good fit when
- You know the amount and what it is for — a machine, a fit-out, a hire, a project
- The return on it arrives over months or years rather than weeks
- You want a fixed monthly cost you can budget around
- You are consolidating expensive short-term borrowing into something cheaper
- You have six months or more of trading history a lender can look at
What drives the rate
Four things: how long you have traded, what security is available, how strong the recent numbers look, and how long you want to borrow for. A secured loan against property can be a fraction of the cost of an unsecured one for the same business.
Expect an arrangement fee, usually a percentage of the amount borrowed. Ask whether the rate is charged on the reducing balance or as a What this meansInterest charged on the full original amount for the whole term, even as you pay it down. A 5% flat rate is roughly twice as expensive as a 5% rate charged on the reducing balance — always ask which one you are being quoted., and ask for the total repayable — that single figure makes comparison honest.
| Unsecured | Secured | |
|---|---|---|
| Speed | Days | Weeks — a valuation is involved |
| Cost | Higher | Materially lower |
| What backs it | Trading record, usually a What this meansA promise that you will repay the borrowing personally if the business cannot. It puts your own money — and sometimes your home — at risk, so it should never be signed without understanding it fully. | Property or assets, plus often a guarantee |
| Typical term | 6 months to 5 years | 3 to 20 years |
Questions we are asked most
How much can my business borrow?
Unsecured lending is usually sized on turnover — very roughly, a month of it, sometimes more for strong, established trading. Secured lending is sized on the value of what is behind it and on whether profits comfortably cover the payments.
The realistic figure is often lower than the maximum figure, because a lender will size it on what you can service without strain. We would rather arrange something you can repay than the largest number available.
How quickly can the money arrive?
An unsecured facility with clean paperwork can be agreed within a few working days and funded shortly after. Anything secured on property takes weeks rather than days, because valuation and legal work sit in the middle and cannot be rushed.
Can I repay early?
Usually, yes — but check the What this meansA fee for paying an agreement off ahead of schedule. Worth checking before you sign if you may want to repay early or refinance. before you sign. Some lenders charge the full interest for the term regardless, which turns a cheap-looking loan into an expensive one if you repay in year two of five.
Find out what you could borrow, and what it would cost.
A first conversation costs nothing and leaves no mark on your credit file.
Or email info@nemekfinance.co.uk · Call 07483 159369
No obligation, no credit check to talk, and a straight answer if finance is not the right move.