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Business Investment Loans

There are many business finance options available tailored to your specific needs and fluctuations in cash flow. Are you looking for an Overdraft facility, Line of Credit or possibly a fully drawn loan? Remember when choosing a business facility you must take into consideration the following:

  • Secured or unsecured finance
  • Interest Rates and Loan Terms
  • Flexibility
  • Fees

Listed below are the features and benefits of each product, to help you choose the best option for your business.

Overdraft Facility

Usually attached to your existing business account, an overdraft facility is an account with an agreed overdraft limit which will provide you with working capital before income is received. Overdrafts can be either secured or unsecured, and will assessed using usual credit assessment.

Account fees are to be expected, and will generally be tiered depending on limit requested.
Overdraft facilities are used for short term cash flow and should not be used for capital purchases or loan term finance needs.

Line of Credit

A Line of Credit is a more flexible and larger version of the Overdraft facility that usually has a lower interest rate than the Overdraft facility. A Line of Credit (LOC) works in the same way as an Overdraft facility, although you will be required to make repayments to cover the Interest and fees on the loan as a minimum.

With a Line Of Credit you are able to draw any available funds at any time, provided that you do not exceed the limit set. Line Of Credit Loans are secured by residential mortgage over a property. This does mean that if you fail to make your repayments you could put your property at risk.

Fully Drawn Loan

Fully Drawn Loans are mostly suitable for longer term funding requirements, plant or equipment, or even to purchase a business. Repayments to the loan are made up of principal and interest payments and can be taken as a variable or fixed rate interest rate depending on your needs.

Fully Drawn Loans will always require security to be provided by way of a registered mortgage over a residential property, a commercial property, or some other business asset. Fully Drawn Loans are not the same as short term loans and cannot be used for day to day management of the business cash flow.

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