Little Business Loans (LBL) aims to make it quick and easy for customers to apply for a business loan. It offers loans of up to £20,000 for a maximum term of 12 months. If you’re a small business owner, this could be used to ease cash flow, fund an internal project or simply to provide working capital.
Since it was founded in 2013, LBL has lent over £2.5 million to small businesses.
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LBL secures loans against your business assets. This means the loan can be approved and funds can be transferred quickly, with less stringent credit checks and paperwork than is sometimes required by other lenders.
Key features of Little Business Loans products
Little Business Loans offer loans of between £500 to £20,000 for a term of up to 12 months. In addition to this, you can choose between daily, weekly or monthly repayments on your loan. Rather than using creditworthiness, the businesses assets and main applicant’s personal guarantee are used to secure the loan.
Loan terms of up to 12 months.
Loan amounts of between £500 and £20,000.
Secured loans. Your business assets, as well as a personal guarantee provided by the main applicant, are used to secure the loan.
Quick application. After a five-minute application process, you will arrange to meet with an LBL agent to discuss the business and complete paperwork. Once your loan is approved, funds are transferred within half an hour.
Fixed repayments. A set fee is decided by the underwriter based on the assets and credit history of the company. Repayments remain the same throughout the period of the loan.
No extra fees. There are no application costs or hidden fees.
Repay your loan early. You can pay back early at any time and there is no extra charge for doing so. If you repay seven or more days early you will receive a discount.
Late fees. If you miss a payment, you will be charged a late fee of £25 in addition to an extra charge of £10 per day.
Rather than charging interest on the loan, LBL charges a set fee. This is decided by the underwriter at the time of your application and is based on the business’s assets and credit history. The total cost of the loan will be the initial loan amount plus the daily, weekly or monthly repayment fees.
Am I eligible for an LBL loan?
When applying for an LBL loan, it’s important to be certain you can meet the repayment terms. As well as this, there are criteria you will need to meet in order to be eligible.
The company must be registered in England or Wales
The business will need to have a main business bank account with a debit card attached to it
Each director must be aged 21 or over, a UK resident and have access to the business bank account
You must demonstrate that the business has sufficient funds to cover repayments
The business must have sufficient assets to act as collateral on the loan
The main applicant will need to provide a personal guarantee
You should only apply for a little business loan if you are certain you can meet the repayment terms. It’s important to look at the overall repayment amount to decide whether it is right for you and your business.
How can I apply?
If you’ve decided that a short-term loan from Little Business Loans is the right choice for you, you can apply online or over the phone. You will need to provide your personal details, the company details and outline the preferred amount and term of your loan.
An application has three steps:
1. Apply. You can apply online or over the phone in under five minutes. 2. Meet a Loan Manager. Once your application is completed, you arrange to meet an LBL loan manager to discuss your business loan, complete your paperwork and finalise your application. 3. Receive funds. If your application is accepted, funds are transferred into your business account within 30 minutes.
Alternative sources of funding
There are many options to consider when raising funds for your small business. Make sure you do your research before you decide which option is best for you and your company. Some other options include:
Get funding from investors. Think Dragons’ Den. Sell a portion of your business in exchange for financing.
Crowdfunding. Get the word out using social media, crowdfunding sites or invest in marketing. Family, friends, fans and even strangers who share your passion can contribute small amounts.
LBL will try and agree on a suitable payment plan with you if you are struggling to repay the loan. Where a repayment plan cannot be agreed, LBL has the legal right to recover the secured goods without a court order.
Yes. You can pay the loan in part or in full before the end date and there are no fees for early repayment. If you repay seven or more days early you will receive a discount.
LBL carries out a credit check on the business and completes a “soft search” on all directors. This does not leave a footprint on your credit file.
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.
Business loan statisticsBusinesses all over the UK face financial instability daily, which often requires outside funding. We have looked into how the state of borrowing for these businesses differs between the industry, over the years, and for the size of the business.
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