Business Loan UK businesses up to £500,000

Borrow £1,000 – £500,000 for 1 day to 2 years with our flexible business loans.

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  5. Business Loan UK businesses up to £500,000

Summary:

  • A Business Loan is a business funding option where a percentage of card sales made by a business helps to repay the loan.
  • To be eligible a business must generate £1,000 in monthly sales; have been trading for three months, the business must be based in the UK; the business owner is over 18 years old.
  • Businesses can borrow up to £500,000 with a Business Loan.
  • The application for a business cash advance is online only and takes minutes to complete. Successful applicants can be approved for funding within 24 hours.

What is a Business Loan?

A Business Loan is a form of business funding that lets businesses borrow money against their future card sales. Rather than interest, a business pays an upfront fee when they take out the loan.

How does a Business Loan work?

The Business Loan is a funding option where a business borrows money and repays the borrowed money with an agreed percentage of their debit or credit card sales This includes purchases made either by a physical card machine or card transactions made online.

For example, every time a customer purchases a product using their debit or credit card using the dedicated card terminal, a small percentage of that payment goes to the lender which helps to repay the loan. This process continues until the loan is fully repaid. 

A Business Loan does not charge any interest on the amount borrowed. Instead, an upfront fee is paid to the lender which replaces the need for any interest. For instance, if a business borrows £50,000, it may be charged an upfront fee of 10% bringing the total cost of the loan to £55,000.

How can I apply for a Business Loan?

Business owners looking to apply for a Business Loan can do so by applying online at the For Kredit website. The online application requires some basic information about the applicant and the business. Successful applicants can be approved for funding within 24 hours with the loan amount transferred into the business’ bank account in minutes once the deal is finalised.

How much can I apply for with a Business Loan?

Business owners that apply for a Business Loan can choose to borrow any amount between £1,000 – £500,000 with For Kredit. The amount borrowed is subject to approval by the lender, which means the final amount offered may be different from the initial amount that was applied for.

Is my business eligible for a Business Loan?

Unlike unsecured funding, there are a few more specialist eligibility requirements that a business must meet to be deemed eligible for a cash advance. To qualify for a Business Loan the business must meet the following criteria:

  • The business must have been trading for at least three months.
  • The business must receive over £1,000 in monthly card sales.
  • The business is based in the UK.
  • The owner of the business is over 18 years of age.

What are the repayment terms of a Business Loan?

With a Business Loan, the loan is repaid with a percentage of your future card credit sales. The percentage of the card sales that is dedicated to repaying the loan is pre-agreed with the lender. 

The repayments are made monthly, so a business repays more in busier months and pays less during slower months. There are no interest rates with a Business Loan that need to be repaid.

Do I have to sign a personal guarantee when I apply for a Business Loan?

Yes, as a Business Loan still qualifies as an unsecured form of funding, the director/owner of the business will be required to sign a personal guarantee. The personal guarantee legally ensures that if the business fails to operate and closes down, any outstanding debt is personally repaid by the guarantor. This helps minimise the risk to the lender and ensures that they receive the money that they are owed.

If I have a bad credit rating, will it impact my application for a business cash advance?

The credit score of an applicant does have the potential to affect an application. It may mean that less money is offered to the applicant as part of the loan.

However, the structure of a cash advance is that it heavily relies on the performance of a business. Therefore, how the business performs is a large factor in determining whether an applicant will be offered a cash advance.

Why do businesses apply for a Business Loan?

Flexible repayment process

One of the attractive and distinctive features of the Business Loan is that the repayment of the loan mirrors how the business performs. This means that when a business is having a really good month and makes lots of sales, the business repays more of the loan back. When the business is having a slower month of sales less is paid back, but the loan is still being repaid in the process.

This is more flexible than rigid fixed monthly payments that must be met every month despite how the business performs.

Useful for businesses that make card sales

For businesses that generate their revenue primarily through card sales, a Business Loan is a really useful funding option. It allows the business to borrow money without having to make any major adjustments to their business

Choose how your business uses the money

A benefit of the advance is that you get to choose how you spend the money in your business. There are a number of ways a business may use the money, such as investment, hiring new staff, marketing, and growing the business – the list really goes on and depends on your needs.

What other funding options are available for small businesses?

A Business Loan may not be suited to every business, that’s why at For Kredit we also provide a number of different unsecured funding options for businesses looking to raise credit.

Businesses we help:

Locations we serve:

We operates across the whole of the UK, but here are some of the specific areas we operate in:

FAQs

How much money can I apply for with a Business Loan?

With a Business Loan, a business can choose to apply for funding between £1,000 – £500,000 to help their business.

How can I apply for a working capital loan?

Businesses can apply for a Business Loan by using the online application at the For Kredit website. The application is completely online so no paperwork is required. Applicants need to provide some basic details about themselves and their businesses. Successful applicants can be approved for funding within as little as 24 hours.

How long do I have to repay the working capital loan?

As the repayment process of the Business Loan is based on sales, it is ultimately down to the performance of the business which determines how quickly the loan is repaid. A business which is consistently performing well will pay the loan off faster than a business that has had a couple of slow months of trading.

Find the right loan for your business

  • Loans from £1k to £500k
  • No fixed repayments
  • No collateral needed
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Will You Qualify For A For Kredit Loan?

There are four main criteria for qualifying for a For Kredit loan.

If you can answer yes to all of these, then you have a good chance of being approved.

You’re a director with a UK address

You’ll also need the relevant documentation to prove this – a passport or a birth certificate are fine.

You’re a UK limited company or limited partnership

We only work with UK businesses.

You have a turnover of at least £10k

We can accept applications from all businesses (no matter the age or industry)

You have been trading for over 6 months

Your business must be at least 6 months old to be accepted.

A Simple Application Process

  • Apply online in 5 minutes

    Decide how much money you need to borrow and fill the online application with all your details.

  • Approval in just 24 hours

    Once your business loan has been authorized, you have the flexibility to transfer the required amount to your bank account. The funds will be deposited into your account within just a few hours.

  • Borrow up to 2 years

    How you pay back your business loan depends on your situation. If you want to pay it back early, there won't be an extra fee.

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