A sum of £15,000 can make a big difference to a growing business, but there are different ways to get your hands on it. This guide will unpack the options available to help you choose appropriate finance for your unique situation.
When it comes to borrowing a lump sum upfront for your business, options include (but aren’t limited to):
If you’re looking for ongoing access to business credit, you could consider the following options:
There are some lenders who specialise in offering business loans in spite of bad credit. However, it could be tough to be approved for sums as large as £15,000 without offering some form of security. If you are approved, you may need to settle for higher interest rates than those available with traditional loans.
Business loans for bad credit.
For a loan of £15,000, you may be expected to provide security in some form using a business or personal asset as collateral. This is known as a secured loan.
In this case, if you fail to repay the loan, the lender can sell the asset to recoup its losses. This mitigates some of the risk for the lender, improving your chances of being approved for a loan and in some cases meaning better rates.
Secured loans usually take longer to fund, because the lender needs to verify the value of the asset that you put forward.
Lenders may additionally seek to reduce the level of risk they are exposed to by asking you for a personal guarantee. This is a contract which states you’ll be personally responsible for debts that the business is unable to repay. These tend to be compulsory for larger loans, whether secured or unsecured.
| Interest rate of 5% fixed p.a. | Interest rate of 10% fixed p.a. | Interest rate of 20% fixed p.a. | |
|---|---|---|---|
| 2 year loan | Monthly: £658.07 Overall: £15,793.70 | Monthly: £692.17 Overall: £16,612.17 | Monthly: £763.44 Overall: £18,322.49 |
| 3 year loan | Monthly: £449.56 Overall: £16,184.28 | Monthly: £484.01 Overall: £17,424.28 | Monthly: £557.45 Overall: £20,068.34 |
| 4 year loan | Monthly: £345.44 Overall: £16,581.09 | Monthly: £380.44 Overall: £18,261.06 | Monthly: £456.46 Overall: £21,909.86 |
Brokers and matching services can hold your hand through the tricky job of finding the best business finance product for you.
A good matching service can instantly check which lenders would offer you a £15,000 loan, saving you time and stopping you from damaging your credit score via multiple loan applications.
These services usually get a referral fee from the lender you end up choosing, meaning it won’t cost your firm a penny.
The downside? These services rarely have access to the full market. Instead, they’ll refer you to lenders from their panel of partners. That means you’re not guaranteed to be offered the very best deal you’re eligible for.
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