Business Loan Basics
There are many uses for a business loan. Maybe you want to grow your business, improve your cash flow or purchase inventory.
When looking for business finance, many credit products are available, including term loans, business overdrafts, a line of credit, business credit cards or equipment finance. Some of the key questions to ask include:
- What is the interest rate – is it a fixed rate or variable rate?
- What are the loan terms?
- What are the repayments like and will I be able to repay the loan?
- What are the terms and conditions?
- Are there any hidden fees, including early payout penalty fees?
Getting a business loan can be a long and complex process. With a bank term loan, for example, you will have to complete a large amount of paperwork and might need to provide complex dosuments, such as a business plan. In addition, research has uncovered that banks reject 74% of small business loans applications. Fortunately, there are more suitable finance options available if you have an existing business that’s been operating for at least six months. At Moula, our application process is entirely paper-less and it won’t take weeks to process. You can apply online in minutes and we can have an answer for you within 24 to 48 hours. Plus, we specialise in unsecured loans, which means no collateral is required.
If you’re a business owner, you probably don’t have time to complete large amounts of paperwork and then wait weeks for a response. That’s why we make it easy to apply for a business loan. Instead of requiring you to complete loads of paperwork and supply a business plan, you can complete a Moula business loan application online in under 10 minutes. Once you link your business data, we can assess your application in real time and can provide an answer within 48 hours. Our application and data linking process is completely secure. You can read more on that in our article on Understanding Data Security.
We also check your credit history – with your permission, of course – to help us make a responsible lending decision. Once your loan is approved, you could receive the funds within 24 hours.
It can take weeks to get an answer when applying for a traditional bank business loans. But in a fast-moving business environment, sometimes you need business funding fast. This could be to buy discounted stock, cover a short-term cash flow shortage, or purchase equipment. Whatever your reason, Moula enables you to get quick access to business finance when you need it. Businesses looking for finance will get an answer within 24 to 48 hours. If the loan is approved, the funds are transferred to your account by the next business day, letting you get on with growing your business.
Some business lenders will charge fees, such as administration fees, direct debit fees and early repayment fees. These fees can add up significantly, and if you weren’t aware of them when you applied, can really inflate the cost of your business loan. When considering the cost of finance for your business purposes, be sure to read the fine print to understand what fees you are being charged.
At Moula, we have no hidden fees. You can crunch our numbers with our loan calculator and see exactly what your repayments will be. We also don’t have any early repayment fees (which can be a particularly tricky fee), so we won’t charge you any extra if decide to pay your loan off early.