A business loan is a popular way for businesses to borrow the funds they need to expand and grow. They enable businesses to borrow a lump sum of cash that’s then repaid in monthly instalments over a set term.
This review looks at the business loans available from JD Capital Finance.
JD Capital Finance is a finance broker (not a direct lender) that was founded in 2017 by Jamie Davies. It’s a firm of funding specialists that assist business owners with getting finance for their company. It works with a panel of more than 250 lenders and focuses on a number of different markets.
Pros and cons
Pros
Range of different business loans to choose from
Easy application process
High borrowing amounts
Cons
Fees may be payable depending on your choice of loan
JD Capital Finance only has access to a panel of lenders, not the whole market
You’ll need to meet the eligibility criteria
What types of business loans does JD Capital Finance offer?
JD Capital Finance offers a range of different business loans, as outlined below:
Recovery Loan Scheme
The Recovery Loan Scheme (RLS) is a government initiative designed to support businesses affected by the Covid-19 pandemic. The scheme was extended in August 2022 and will now run until 30 June 2024. Through the scheme, you might be able to borrow up to £2 million, and you can then use these funds however you wish. You can apply for the RLS even if you’ve already borrowed under the Bounce Back or Coronavirus Business Interruption Loan Schemes (BBLS or CBILS).
Interest and fees charged depend on the lender.
Short-term business loans
Short-term business loans typically last from as little as 1 month to up to 12 months. These loans are unsecured, and they can be a good choice if you need a quick cash injection that can be repaid over a few months. You can typically borrow between £10,000 and £500,000, and you’ll often receive the funds in as little as 24 hours. You might even be able to borrow if your business has a poor credit rating.
Working capital loans
A working capital loan is similar to a standard loan but is designed to increase working capital and your cash flow. You can use the funds for day-to-day expenses such as bills and rent. The loan is unsecured and typically needs to be repaid after 12 months.
Secured business loans
Secured business loans need to be secured against an asset, such as property. Because of this security, interest rates can be more competitive compared to unsecured loans, and you can usually borrow a larger sum of cash. This makes them a good option for business expansion, buying new equipment and consolidating debt.
The amount you can borrow depends on the value of the assets you own, and interest rates start from 0.5% to 1% per month. Note that secured loans can take longer than other loan types to process, as the asset you’re using as security will need to be valued. Also, be aware that if you are unable to keep up with your loan repayments, your asset could be at risk.
Unsecured business loans
With an unsecured business loan, you don’t need to use an asset as security, which means this type of loan is less risky for the borrower. However, unsecured loans are riskier for the lender, so interest rates tend to be higher and borrowing amounts smaller.
An unsecured business loan can typically be transferred into your account within a few days, and you might be able to borrow between £10,000 and £500,000.
Startup loans
If your business is just starting out, a startup business loan can enable you to secure your cash flow and invest in stock, staff or premises. It’s an unsecured loan, and the amount you can borrow depends on factors such as how soon you expect the business to start generating cash, how much capital you’re putting into the business and what needs to be paid for before you can start trading.
Key features of JD Capital Finance business loans
Some of the key features of JD Capital Finance business loans include:
Flexibility. You can usually use the funds for a range of purposes, whether you’re looking to hire staff, expand your premises or pay bills.
High borrowing amounts. You might be able to borrow up to £10,000 to £5,000,000, depending on the loan.
Wide range of lenders. JD Capital Finance works with more than 250 lenders to help you find the right loan.
Quick overview of JD Capital Finance business loans
Minimum trading period
12 months
Loan terms
Terms not specified
Loan amounts
From £10,000 to £5,000,000
Minimum turnover
£100,000
JD Capital Finance customer reviews
JD Capital Finance is highly rated on review site Trustpilot. It scores 4.7 out of 5 from more than 160 reviews (updated August 2023), giving it an “excellent” rating.
Positive comments focus on the professional, knowledgeable and helpful customer service team, as well as the fast access to funds.
Am I eligible for a JD Capital Finance business loan?
Exact eligibility criteria depends on the loan you want to apply for, as well as the lender. Each lender will want to be confident that your business is genuine and profitable.
Generally, you’re likely to need a minimum turnover of £100,000 unless you’re a startup. You’ll also need to be a UK-based registered company (usually limited), and you might need at least 1 year of accounts.
You’re more likely to be accepted if you have a good credit rating, but some providers are more lenient than others and might still accept you with a poor credit history.
JD Capital Finance application process
To apply for a business loan with JD Capital Finance, you’ll need to first get a quote on the website, which won’t affect your credit score. You’ll need to provide details, including how much funding you need, when you need the funds and what they are for. You will also need to provide a few personal and business details.
Depending on the loan type, it can often be arranged within 1 to 2 days. Secured loans take longer.
Alternatives to business loans
If you’re not sure if a business loan is right for you, there are some alternatives to explore.
A business credit card
A business credit card is a flexible way of borrowing funds and can be a useful way to manage cash flow. You are given a line of credit up to a set amount, which you can then use as and when needed. You then repay the amount borrowed in monthly instalments, but repayments are not fixed as they are with a loan. If you can afford to pay off the balance in full each month, you won’t be charged interest.
Asset finance can enable you to acquire business equipment, machinery and vehicles without the need to pay for them upfront. You can do this through hire purchase and lease financing, and payments are usually fixed. Depending on the agreement, you might be able to keep the asset at the end of the term, return it, upgrade it or continue leasing it.
This lets you borrow money based on what customers owe you, helping you to get paid faster. Instead of waiting for your invoices to be paid, a third party advances you a large percentage of the invoice value upfront. When the invoices are due, the third party collects the money from the client, and you’re paid the remaining balance, minus any fees. You can apply for invoice finance with JD Capital Finance.
A government grant is a sum of money awarded to a business to help it grow, but unlike with a loan, you don’t need to repay the money. You can choose from hundreds of different grants, but some may be restricted to particular areas in the UK as well as certain sectors.
Crowdfunding
Equity crowdfunding is a way of raising funds from a ‘crowd’ of investors, such as individuals or organisations. In return for their investment, they might get a share in your company.
Angel investors
Angel investors are high-net-worth private individuals who invest their own money into your business in return for a stake in the company.
Frequently asked questions
Yes, JD Capital Finance is authorised and regulated by the Financial Conduct Authority (FCA).
This depends on the type of loan you’re applying for. Some can be completed within 24 hours, others take 1 to 2 days and other loan applications take longer. Secured loans, for example, take longer because a valuation needs to be carried out on the asset you’re using as security.
It might be possible to take out a second loan with JD Capital Finance, but this depends on your business’ financial circumstances. You must also be able to keep track of repayments for both.
This depends on the type of loan you’ve taken out, so it’s best to contact JD Capital Finance to find out more.
Yes, you might be able to make overpayments, depending on the type of loan you have. However, you might have to pay an early repayment charge, so make sure you read the terms and conditions carefully. If you’d like the option of being able to overpay on your loan, it’s worth looking for a lender that doesn’t charge early repayment fees before applying.
Depending on the type of loan and the lender, it’s possible you will need to sign a personal guarantee when you apply for the loan. This means you will be personally responsible for repaying the debt if your business can’t. Secured loans require you to use an asset, such as property, as security.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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