Sensible Business Loans

Take the Sensible approach to business lending.

We search the UK loan market to find the best deals for your business.

At Sensible, we've partnered with the biggest finance companies in the UK to offer you the best possible deals when it comes to business finance and loans.

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What is a business loan?

A business loan is a financing option that can help your business to access capital to support growth and cover expenses such as operating costs, inventory, equipment, or expansion.

The loan is repaid over a predetermined period, with interest rates that can be either fixed or variable. Eligibility and repayment terms are dependent on the type of loan and the lender. Obtaining a business loan can also improve the creditworthiness of your business, it can also help you to avoid diluting equity and taking on unnecessary investors or partners.

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What could taking out a business loan mean for you?

1

To Expand Operations

Taking out a business loan can help your business grow and expand. By investing in your business, you may be able to increase revenue, improve cash flow, and achieve greater success. However, it's important to have a clear plan. So, before committing to a loan, consider the risks and benefits for your business.

2

Access to Capital

Taking out a business loan means having access to funds that can help you start or expand your business. From purchasing equipment to hiring employees or launching a new product, a business loan can provide the necessary capital. In short, capital serves as the lifeblood of businesses, providing the necessary fuel for innovation.

3

A Sensible Partnership

We work with you to understand your business needs and goals and provide personalised guidance and support throughout the loan application process. We can help to guide you through the complex landscape of business finance, from commercial lending to investment capital, to ensure that you access the best financial products available to you.

4

Improved Creditworthiness

Successfully repaying a business loan not only provides you with the necessary capital to grow your business but also improves your creditworthiness. A successful repayment history demonstrates that you are a reliable borrower, and this can positively impact your credit score, making it easier to negotiate better terms and interest rates on future loans.

5

Flexibility

Business loans offer flexibility in terms of repayment schedules, interest rates, and loan amounts. This means that you can tailor the loan to your specific business needs. For instance, you can choose a repayment schedule that aligns with your cash flow, such as longer-term or shorter-term monthly payments.

6

Competitive Interest Rates

As a lender broker service, we have a comprehensive understanding of the loan market and can help you find the best loan options and lenders that offer competitive interest rates, fees, and terms. Our service offers a streamlined process, helping you find the most favourable financing options, which can save you money in the long run.

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We source the best deals from trusted UK suppliers.

Business Finance Types Explained.

A secured business loan means that the loan is supported by collateral, consisting of valuable assets owned by your business. This type of lending relies on the backing of the business's assets, typically items such as commercial real estate, equipment, or vehicles. Secured loans tend to have lower monthly payment options, due to the assets being pledged to the lender in cases whereby loan repayments cannot be made.

Unsecured loans provide more flexibility compared to secured loans. Secured loans use assets as collateral meaning that you pledge these items to the lender should a situation arise in which you are not able to keep up loan repayments. An unsecured loan provides a versatile borrowing solution that enables businesses and corporations of any size to access immediate funds without having to use valuable assets as collateral.

Peer-to-peer lending is gaining popularity as a type of lending which can facilitate direct borrowing and lending between individuals. This cuts out the need for a traditional financial institution as a middleman. Therefore, this approach to lending has many benefits to both parties involved as borrowers have a quicker access to finance at competitive interest rates. Equally, lenders have an opportunity to earn higher returns on their investments as compared to savings accounts or other investment options.

What will my loan cost?

It’s important for you to work out what your loan will cost you in terms of monthly repayments over the term. Whether you’re looking to take a £5,000 loan or even £15,000, our loans calculator can help you work out how much you can afford to borrow by entering how much you can afford to pay back each month and the length of time you can afford to pay that amount (and at what interest rate.)

Smaller loans tend to have higher interest rates, which can affect the affordability of your loan. Taking out a loan over a longer term can bring down monthly repayments.

Loan Amount Monthly repayments Length of agreement
£10,000 £239.84 60 months
Total amount repayable Representative APR Annual Rate of Interest
£14,390.66 16.5% APR 16.5% APR
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How can I improve my chances of being accepted for a business loan?

Demonstrate your ability to manage the loan effectively to increase your chances of getting a business loan. You can do this by ensuring you have a solid business plan that includes your goals, target market, competition, and financial projections.

Additionally, having a strong financial history and credit score and making sure all debts are paid off will greatly improve your chances of obtaining a business loan to grow your business.

Choosing an industry appropriate lender that aligns with your business needs and experience in your industry is crucial as lenders with experience in your industry have a better understanding of the unique challenges and opportunities faced by businesses in your field.

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Frequently asked questions.

The repayment terms of business loans can vary depending on the lender, type of loan, and intended use. Short-term loans typically last up to 18 months, medium-term loans can be up to 5 years, and long-term loans can be 5 years or more. The length of the loan term can impact the overall cost of the loan, including the interest rate.

Business loans can be categorised as either secured or unsecured. Secured loans are often backed by collateral such as inventory, equipment, or property of the business, whereas unsecured loans do not require collateral but can have higher interest rates. Which type of loan a business qualifies for depends on various factors such as credit history, revenue, and the intended use of the loan.

Yes, obtaining a medium to long-term loan for a startup is possible but can be more challenging due to the higher risk involved. Startups must demonstrate a strong business plan, financial projections, and may be required to provide personal guarantees or collateral. Alternative lending options such as peer-to-peer lending or smaller investors may be considered. It's important to do thorough research and understand the terms and conditions before committing to a loan.

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