Lenders apply interest to the borrowed amount, calculated as a percentage of your expansion loan. The lender considers various factors when evaluating your business profile and determining the interest rate. Once your loan application is approved, you will receive the loan amount, and as per the agreement, you will repay the loan along with the interest to the lender over the agreed period.

Utilising a small business expansion is a viable option for market expansion, product diversification, and facilitating the merger of businesses. Given the significant implications of business expansion, careful consideration is essential before implementing any changes. Hence, understand the pros and cons of such a loan and decide carefully.

Pros: A few advantages of borrowing a business loan for expansion are listed below.

• No Profit Sharing: The lender you secure a loan from doesn’t share in your business profits.
• Simple Handling Process: Handling loan repayments is simpler compared to accounting for profits with an equity investor.
• Simple Handling Process: Handling loan repayments is simpler compared to accounting for profits with an equity investor.
• Easy Application Process: The application process is swift and straightforward, and upon approval, funds can be disbursed within 24 hours, enabling prompt initiation of expansion plans.
  
  

Cons: While weighing your decision, you must also consider the possible disadvantages of borrowing this loan expansion.

• Collateral at Risk: To safeguard their investment, numerous financial institutions mandate that business owners provide collateral as a precaution in case payment defaults occur. If you use a business asset as collateral, the risk exists that you may lose it in the event of a loan default.
• High-Interest Rate: The interest rates you receive generally hinge on your credit score, encompassing your business credit scores. Although lenders typically offer lower interest rates than alternative funding sources, meeting the criteria for these advantageous rates can be challenging. If your credit rating is below average, you may incur higher costs for the loan than desired.
• No Guarantee of Success in Investment: There is no guarantee that the planned investment will result in the success of your business.

Lenders offer these loans for Limited Companies, Sole Traders, and other businesses who want to borrow money for the growth and expansion of their respective companies. Business Expansion Funding is a viable option if you:

• Can afford the repayments without any hassle
• Have a solid roadmap for achieving success from the investments you are about to make.
  
  

Why it might not be suitable for you?

Business Expansion Funding will give you more financial room to grow your business and take it to the heights you aim to reach. However, it may not work for you if you:

• Want a loan at a low interest rate.
• Need a backup plan to repay the loan on time as agreed.

The application process with LoanTube is simple. Our credit experts are well-versed in the business finance market and understand the requirements of our lenders. It ensures swift access to the appropriate lenders, increasing the likelihood of securing the finance you need on the first attempt. Additionally, you minimise the risk of spending time on direct applications with lenders that may result in refusals.

Most of our lenders like to see:

• A background or credit check: Lenders typically conduct a quick credit search as part of the loan approval process, and this is usually almost instantaneous, ensuring that your application progresses without delays.
• Recent trading history: The longer your business has been in operation, the greater the availability of loans from lenders, often accompanied by more favourable interest rates. While trading for 18 months or longer is considered ideal, lending options are still available for newer businesses, so there’s no need to worry.
• A business health check: Lenders may require an overview of your business’s performance to ascertain the affordability of repayments and to provide reassurance that you can repay their credit.

Effortlessly save time and streamline the process by utilising LoanTube to explore the market and discover the most suitable loans for your needs. With our close partnerships with numerous lenders, we know exactly where to go for your loan. Additionally, the application process through LoanTube is straightforward, ensuring you access to the right loan options available in the UK credit market.

• Finish your inquiry without affecting your credit profile
• Consult with one of our skilled human credit experts if assistance is needed
• Allow us to explore the market to identify the right lender and loan for your specific requirements
• We elucidate the option we consider well suited to your needs
• Submit the necessary documents to finalise your application
• Receive the funds swiftly in your bank account