Today, it has become more difficult for small business owners to obtain loans from traditional lenders in the UK. The total number of small business loans offered by banks and credit unions have significantly reduced.
While that might be disappointing, it does not mean you cannot acquire a loan for your business if you need one. You can work with a direct business lender and get the funding you need for your business.
Working with a direct business lender is beneficial in many ways.
Here are the top ten benefits you will enjoy from working with a direct business lender:
- Increases the Chances of Getting Your Loan Approval
Most traditional lenders, such as large banks and big unions, are not willing to give loans to small business owners because they think that the reward is not worth the risk.
Fortunately, a direct lender will think in a different perspective. They usually understand that small business owners require regular loans to succeed. Thus, they are willing to cash out small businesses and help them met their needs.
- Better Loan Terms
While you can still secure a small business loan from a large UK banks, you may not get the best loan terms. Traditional lenders often charge high-interest rates and fees, which are not favorable for your small business.
Luckily, direct lenders in the UK are more accommodating and can give you a loan with better loan terms.
- Get a Loan Customized to Meet Your Direct Needs
Direct lenders are usually interested in working with small business owners to help them meet their business needs.
They take time to evaluate your situation to see what kind of loan your business needs to succeed. Even if you don’t qualify for a loan that you wanted, they will integrate more creative loan terms and give you a loan that you can manage to pay.
- Avoid Large Down Payment
Small businesses may not be able to pay a large down payment for a loan. For this reason, direct lenders don’t usually ask their borrowers to pay a large down payment.
Though there are times when you cannot avoid a down payment, direct lenders will alter loan terms to ensure that the down payment is suitable for small business owners.
- You Don’t Need Perfect Credit
Unlike traditional lenders, direct business lenders can give you a loan with fair credit. You don’t need to have perfect credit.
Based on the loan terms, a direct lender will cash your business even when your credit is not good as it should be.
- Less Paperwork
Getting a loan from a traditional lender involves a lot of paperwork, and the process becomes more tiring.
But with direct lenders, the paperwork is limited, especially when you borrow directly from their company.
- Your Loan Comes Quickly
Your situation as a small business owner may not allow you to wait for a loan too long.
When borrowing money from direct lenders, the money comes through within a few days. This may not be the case with large banks as you will have to wait for weeks or even months.
- Access to Loan Officer
Direct lenders allow you to work one-on-one with a loan officer who can help in customizing your loan terms.
A loan officer can also guide you and answer your questions concerning the loan.
- You will Enjoy Lower Rates
The rates of the loans given by banks are always higher when compared to direct lenders.
If you want to get a loan with lower rates and fees, direct lenders can be your best option.
- You will Enjoy Other Services
Most direct lenders offer other loan services apart from small business loans. You can speak with your loan officer about how your lender can help you take your business to the next level.