Hitachi business loans review

Founded over 100 years ago, Hitachi is a Japanese company with 11 different business components, including financial services. Its mantra is “Inspire the next”, and it was voted the UK’s Best Direct Loan Provider by Your Money for the past four years.

Hitachi offers several different types of loans to support your business. It’s straightforward to apply via Hitachi’s website.

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Hitachi business loan options

Hitachi offers one type of business loan. Whether you’re starting a new business or looking for a boost to the next level, Hitachi offers £5,000 to £50,000 for a term of 1-5 years.

Key features of Hitachi business loans at a glance

Hitachi offers unsecured loans, meaning that they are based on aspects such as your credit rating, and you don’t need to provide assets as collateral. Below are the key features of Hitachi’s business loan.

• Loan duration. The loan terms are between 1 and 5 years.
• Loan amounts. A minimum amount of £5,000 and a maximum of £50,000.
• Security. Hitachi offers unsecured business loans, which means security isn’t required and the lending decision is based on details such as credit rating.
• Fixed monthly repayments. Your business will pay the same amount each month and you will see how much your loan will cost overall.
• No repayment holidays. Hitachi does not currently offer the option to take repayment holidays.
• Quick decision. You will get a decision the next working day.
• Quick access to funds. You will have access to the funds within 48 hours of being accepted.
• Set-up fee. Hitachi does not charge arrangement fees, but there is a document fee.
• Repay your loan early at any time. You can make overpayments or early repayments on your loan free of charge.

Interest rates for Hitachi’s business loan are fixed for the duration of your repayment period. However, the interest rate that you are offered will depend on factors such as the amount you are borrowing and how long you are borrowing it for, as well as your credit rating and income. It is worth remembering that it may differ from the advertised “representative APR”.

Am I eligible for a Hitachi business loan?

You should only apply for a Hitachi business loan if you are certain that you can meet the repayment terms. You must also meet the following criteria:

• Aged 18 or older
• Permanent UK resident for at least 3 years
• Application is in the name of a business currently trading in Great Britain
• You have a bank or building society account
• You have a good credit rating
• You can repay your loan with direct debit
• You are authorised by your business to make a loan application

How can I apply?

Hitachi offers a quick online application form, and says it will give you a decision in minutes.

If you want to apply, simply visit the website and fill in the online application form. You will need to provide both your personal and business details, and more information might be required before a decision.

When applying, it is helpful for you to have the following information close by:

• Business name and address registration number
• 3 sets of accounts filed at Companies House
• Director guarantees

Alternative sources of funding

• Invoice finance. Invoice finance is offered by Hitachi. When you invoice a customer, Hitachi will be able to pay you a chunk of the money straight away, with the rest of the money being paid to you when the customer pays. This means you won’t be left out of pocket when you are waiting for a customer to pay, although you will have to pay a small charge.
• Overdrafts. A quick solution would be to contact your bank and apply for an overdraft for your business account, or increase an overdraft you already have. However, this should only be a short-term solution, and it is important to recognise that interest rates on overdrafts can be quite high.
• Peer-to-peer lending. With peer-to-peer lending, individuals can lend their money to businesses for a higher return than they would receive by putting the money in the bank. There is no minimum amount that you must raise, and the interest rate is usually lower than a bank’s.
• Crowdfunding. In the current social media age, crowdfunding offers a new, non-traditional way of funding your business. You simply choose a crowdfunding website and explain what you need the money for, and allow individuals or businesses to invest in your business.
• Asset finance. If you’re a small or medium-sized enterprise (SME), asset finance can help you spread the cost of business purchases, such as manufacturing equipment or software.
• Hire purchase. Hire purchase enables you to pay for a new purchase for your SME over monthly instalments, with the option to buy the asset outright at the end of the repayment term.
• Government loan schemes. The government offers startup loans for new businesses, with borrowing amounts ranging from £500 to £25,000. There are criteria that you will have to meet to be eligible for this loan, such as being over the age of 18 and a UK resident, and your business will need to have been trading for less than 24 months. For more details about the government loan, visit https://www.gov.uk/apply-start-up-loan.

Frequently asked questions

• If I am accepted for a loan, how quickly will I receive the funds?

  You could have the money as quickly as within 48 hours, excluding bank holidays and weekends.

• Does Hitachi charge any arrangement fees?

  There is no set-up fee but there is a document fee.

• Can I increase my loan amount?

  To discuss increasing your loan amount, you can contact the Loans Team on 0343 351 9112 or email loansteam@hitachipersonalfinance.co.uk.

• Does Hitachi offer repayment holidays?

  Not at the moment, but that’s something it is considering.

• Is there a cooling off period?

  Yes, there is a withdrawal period of 14 days. You can call the Hitachi Customer Service Team to withdraw from your loan on 0344 375 5500. Once you have withdrawn from your loan, you must repay the full amount borrowed within 30 days.

Chris Lilly

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Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.