Unsecured Business Loans for SMEs and Retailers

Last post: Sep 12, 2013

Finance for retailers and SMEs with credit card machines is available via a Merchant Cash Advance

With banks' lending policies - especially to new or smaller businesses - still incredibly reticent, UK SMEs are having to look at alternative options when it comes to raising finance. One product that has rightfully garnered a lot of popularity recently is the Merchant Cash Advance which allows retailers to effectively "sell" their future credit card sales for cash today, repaying the advance by giving a slice of those future card sales toward lowering the balance owed. This product is very useful but it does require the business to have a credit card machine. Wouldn't it be good if something similar were available but based on overall turnover instead? Well, now just such an Unsecured Business Loan is available. What is available?
  • Typically up to 50-55% of your average monthly turnover is available as an UNSECURED business loan
  • Loans amounts start at £3,500 and up to £500,000 is on offer
How do I qualify for such a loan?
  • You must be trading for at least 9 months (2 years if you are in a seasonal business)
  • You must be a Limited company or, if you are a sole trader or partnership, the loan application must be in excess of £25,001
  • You must be turning over at least £6,000 per month
  • You must own at least 51% of the business
  • The business must be of an acceptable type (some sectors involving finance, cars, gambling, auctions, adult entertainment, online pharma, direct marketing, fitness clubs etc. are not considered suitable by the lender)
  • The credit history and cash flow of the business must be favourable
How much does it cost?
  • The costs are similar to those of a Merchant Cash Advance and depend on the length of time you want the loan for. The terms are:
    • 4 months --> 25%
    • 5 months --> 30%
    • 6 months --> 35%
    • 7 months --> 40%
    • 8 months --> 45%
  • These costs are fixed and there are no other admin, broker, legal or any other kind of fees
How do repayments work?
  • You will be required to make fixed daily repayments via direct debit on this loan. The amount of the daily transfer depends on the turnover of your business and will be agreed with you in advance.
How long does it take to arrange?
  • As little as 5 days but more likely 7-10 days
What do I need to apply?
  • We ask you to compete an Application form and General Authorisation form
  • 3 months' bank statements (9 months for a seasonal business)
  • A voided business cheque
  • Contact details for your landlord so a reference can be obtained
  • Copy of passport of driver's licence
If you'd like to know more or see if you qualify then the team at Choice Loans is ready to assist you. Please call us on 0845 126 0350 and we will walk you through your options for finance to see if this Unsecured Business Loan is suitable for you or if there is a better option.