Small Business Loans (SBLs) are financial products designed to help small businesses access the capital they need to grow or manage day-to-day operations. These loans are typically offered by banks, alternative lenders, and government-backed schemes.
Do you need finance to expand your business or manage your short-term cash flow? If so, a small business loan of up to £10,000 could be the solution you’re looking for.
Apply for a small business loan online through Liquidity Solutions, and let us find the right loan for you. Our team of experts understands the UK small business loan market inside and out.
We take the time to understand your needs and search the market to match you with the right lender. So, when you need fast, affordable access to a small business loan, Liquidity Solutions is here to support you, helping you secure the finance your business needs.
With flexible terms and competitive rates, we work to ensure your loan is tailored to your specific requirements. Whether it’s for growth, stock, or bridging cash flow gaps, Liquidity Solutions is committed to helping your business thrive.
What are Small Business Loans
There are two primary types of small business loans:
1. Term Loans: A lump sum of money borrowed and repaid in fixed installments over a set period, typically with a fixed or variable interest rate.
2. Line of Credit: A flexible loan that allows businesses to access funds up to a pre-approved credit limit as needed. Interest is only paid on the amount withdrawn.
Advantages of Small Business Loans
Quick Access to Capital: Small business loans can provide fast access to necessary funds, enabling businesses to seize opportunities or address urgent needs without long delays.
Flexible Use of Funds: Loan proceeds can be used for a variety of purposes, such as expanding operations, purchasing stock, or covering operational expenses.
Builds Business Credit: Successfully repaying a business loan can help build or improve the business’s credit rating, making it easier to secure financing in the future.
Business Profile: A well-established fine dining restaurant seeking to expand its menu offerings and improve customer experience.
Small Business Loan Need: Business A requires £50,000 to renovate the restaurant’s interior and update kitchen equipment.
Loan Type: Term Loan
Loan Details:
Loan Amount: £50,000
Repayment: £990 per month over 60 months
Interest Rate: 7%
Total Repayment: £59,404 (including interest)
Scenario:
Business A receives £50,000 to renovate the dining area and upgrade kitchen equipment.
Monthly repayments of £990 are made from the restaurant’s sales revenue.
After 5 years, the loan is fully repaid, and the restaurant benefits from increased customer satisfaction and higher revenue from the upgraded space and equipment.
Business B: Tech Startup
(illustration purposes only)
Business Profile: A growing tech startup specialising in software development and app creation, looking to expand its team and improve product offerings.
Small Business Loan Need: Business B requires £100,000 to hire additional developers and scale the company’s operations.
Loan Type: Line of Credit
Loan Details:
Credit Limit: £100,000
Repayment: Interest-only payments on the amount drawn
Interest Rate: 8%
Monthly Interest Payment (if fully drawn): £667
Repayment Term: 12 months
Scenario:
Business B secures a £100,000 line of credit to hire additional staff and support expansion.
The business only withdraws what’s needed, and interest is paid on the amount used.
The company repays the drawn amount gradually as revenue grows, ensuring flexibility in managing cash flow.
Why Use a Small Business Loan?
A small business loan can be a game-changer for businesses looking to grow, stabilise operations, or seize new opportunities. Here’s why many businesses choose this type of financing:
Manage Cash Flow Gaps – Cover short-term expenses while waiting for payments.
Expand Your Business – Open new locations, hire staff, or invest in growth.
Purchase Stock – Ensure you have enough stock to meet demand.
Upgrade Equipment – Invest in modern tools, machinery, or technology.
Launch Marketing Campaigns – Fund advertising and promotions to attract customers.
Take Advantage of Growth Opportunities – Secure funding for new projects or large orders.
Build Business Credit – Strengthen your credit rating for future borrowing.
Flexible Financing Options – Choose from term loans, lines of credit, or other tailored solutions.
Access to Capital for Growth: A bakery uses a loan to open a second location or buy larger equipment to expand.
Flexible Loan Options: A startup opts for a line of credit for daily expenses, while a larger business chooses a term loan for expansion.
Fixed Repayment Schedule: A retail shop uses fixed repayments to manage monthly expenses without fluctuation.
Improve Business Credit Score: A construction company builds credit by repaying a loan on time for new equipment.
Keep Full Ownership and Control: A family-owned restaurant secures a loan without giving up equity or control.
How does a Liquidity business loan work?
1
Apply Online
Start by submitting your application on our website, quick and easy!
2
We Search for the Best Lender
We scan our panel of trusted lenders to find the one that best fits your needs.
3
Connect with Your Lender
We introduce you to the lender, and they’ll take it from there to complete your application. You could get funds in as little as 24 hours.
Why Small Businesses Get Small Business Loans
To Expand Operations
To Purchase Equipment
To Increase Stock for High-Demand Periods
To Fund Marketing and Advertising Campaigns
To Improve or Renovate Facilities
To Hire New Staff
To Cover Emergency or Unexpected Costs
To Manage Cash Flow Gaps
Business Loans
What is a Small Business Loan?
A Small Business Loan is a type of financing that provides businesses with upfront capital to help cover costs such as expansion, stock, equipment, or operational expenses.
How does a Small Business Loan work?
A lender provides funding that is repaid over time with interest, typically through fixed monthly payments. Terms and repayment schedules vary depending on the loan type and lender.
How can a Small Business Loan help my business?
It can fund various needs, such as expanding operations, hiring staff, buying equipment, or managing cash flow, giving your business the boost it needs to grow.
What are the requirements to qualify for a Small Business Loan?
Requirements vary but often include proof of trading history, financial records, bank statements, and credit rating. Some lenders may also require a minimum turnover threshold or collateral.
How much can I borrow with a Small Business Loan?
Loan amounts typically range from £1,000 to £500,000 or more, depending on your business’s financial health, revenue, and the lender’s criteria.
What is the interest rate for a Small Business Loan?
Interest rates vary based on the loan type, lender, and your business’s credit rating. Rates may be fixed or variable, so it’s essential to compare options to find the best fit.
Can I use a Small Business Loan to consolidate my debts?
Yes, some Small Business Loans can be used to consolidate debt, but you’ll need to confirm this with your lender as it depends on their policies.
Can I get a Small Business Loan if I am a start-up?
Start-ups may find it more challenging to secure loans, but some lenders specialise in start-up financing. Typically, you’ll need a solid business plan and proof of potential revenue.
How long is the repayment period for a Small Business Loan?
Repayment periods range from a few months to several years, depending on the loan type and the lender’s terms.
Can I get a Small Business Loan if I have bad credit?
Yes, some lenders cater to businesses with poor credit, although interest rates may be higher. Demonstrating steady cash flow can improve your chances.
How quickly can I get approved and receive the funds?
Approval times vary, but many lenders, especially online ones, can approve and fund loans within 24 to 72 hours after application.
Can I use a Small Business Loan for any business expenses?
Yes, Small Business Loans are versatile and can be used for a range of expenses, such as buying stock, marketing, paying staff, or expansion.
What documents do I need to apply for a Small Business Loan?
Typically, you’ll need financial statements, bank records, proof of identity, and details about your business’s operations and revenue.
Are there any fees or charges associated with a Small Business Loan?
Fees may include arrangement fees, early repayment charges, and administrative costs. Always review the loan terms carefully to understand all associated costs.
Can I get a Small Business Loan if my business has irregular cash flow?
Yes, some lenders offer loans tailored to businesses with variable income. Flexible repayment options, such as revenue-based repayment, may be available.
Can I use a Small Business Loan to expand my business?
Absolutely, Small Business Loans are often used to fund expansion projects like opening new locations, purchasing equipment, or investing in marketing campaigns.
How do I choose a reputable lender for a Small Business Loan?
Look for transparent terms, competitive rates, and positive customer reviews. Comparing multiple lenders can help you find one that best suits your business’s needs.
What happens if I cannot repay the loan on time?
Missing repayments may result in penalties, damage your credit rating, and lead to legal action. Contact your lender immediately to discuss repayment options if you’re struggling.
Are there alternative financing options to a Small Business Loan?
Yes, alternatives include business lines of credit, merchant cash advances, invoice financing, or equipment financing, depending on your specific needs.
Can I use a Small Business Loan to purchase stock or pay staff?
Yes, these loans are commonly used for operational expenses such as stocking stock, payroll, or covering other day-to-day costs.
