Instant Loan Company

Why are banks redirecting small business loan applications? Anyone who remembers the heady days of Who Wants to Be a Millionaire will recognise our title phrase! Many a contestant when stuck on a question - usually involving a huge amount of money - would take the last resort option of phoning a friend. This could have devastating consequences if the friend either didn’t know or got it wrong. But many times it saved the day. Now, it seems, the big banks are going to be phoning a friend on behalf of small businesses. Changes under The Small Business, Enterprise & Employment Act 2015 are scheduled to come into effect in November. As part of this, nine leading high street banks will redirect all small business loans they reject to independent finance organisations. The aim of the initiative is to boost competition amongst those lenders offering small business loans. The way the scheme will work is that if a bank rejects an application for a small business loan it is then obl...

Which is right for you? A business loan or an equity investor? Whilst there is an ever-increasing variety of different methods to finance a business, two of the main choices still remain as being a business loan or an equity investor. A business loan is where someone outside your business lends you money that at some stage you will need to repay, whereas an equity investor is someone who puts money into the business in return for taking ownership of part of the business and influencing its future development. But what are the pros and cons of each - and how do you choose between them? In this article we take a look at the main differences to help you make your all-important decision! Advantages and disadvantages of a business loan It can be very quick to obtain a business loan, giving you almost immediate access to additional funds; Once you have obtained the money it is yours to do with as you wish - no-one else is involved in the decision; You will be charged interest...

Is it still possible to get a small business loan in the UK? In the aftermath of Brexit we are constantly being assured that Britain is still open for business. The soundbite has been used by Sadiq Khan about London’s ongoing strategic role, Philip Hammond on his first trip to New York’s Wall Street as finance minister, and most recently by Transport Secretary, Chris Grayling, in wake of the decision about Heathrow’s third runway. But how are things in reality for those running their own businesses and perhaps making use of small business loans in the UK? Is Britain really still open for business? Two recent pieces of research show that whilst Britain is still very much open for business, one of the issues that is causing increasing concern is time spent on business administration. This is particularly affecting businesses in their early stages. In February the FSB (Federation of Small Businesses) surveyed 1,685 small business owners online. The research by found that 67% of sma...

Seven steps to securing a business loan “Money Makes The World Go Round” is a song from the iconic film Cabaret that outlines the stark contrast between the lives of those that have money and those who do not. When you run a business it seems even more the case! There are times when you need money to move your business forward and make money but you are having difficulty obtaining a business loan to be able to do this. It seems that you’re stuck in a vicious circle. In order to be able to raise finance when you need it, the best thing to do is to continually work to improve your credit score. Your credit score indicates your ability to manage existing credit and the affordability of taking on new credit. Every adult in the UK has a credit score: it is not something that you have to request. So, whether or not you know what it is, it is there for lenders to view and to influence their decision to lend to you. In the UK there are three main credit reference agencies: Exper...

Larger business loans for SMEs Like the small businesses we provide funding to,  Instant Business Loans is also continually looking to improve what we can offer. Over the past 12 months we have listened to feedback from our clients and partners and in response to this we are pleased to announce that from the 1st December 2016 we are increasing the maximum loan size we can offer to $20 million . Alongside this, we will be moving to greater flexibility in interest rates for all new funding applications received from 1st December. The interest rate of loans will relate directly to the risk profile of you and your business as we believe this the fairest approach for all. Robert Benfield, Head of  Instant Business Loans , commented that “Following the national expansion of our lending proposition last year, we are pleased to be announcing further improvements to our product offering." "We will continue to be market leaders in transparency of terms a...

Many young farmers would prefer business loans to a subsidy Whilst we wait for the Brexit wheels to start rolling, there is much speculation in many areas of the economy about what will actually happen. One of those areas is farming. It is a profession that is sadly often overlooked, and one that has direct benefit from being in the EU in terms of the Common Agricultural Policy - CAP. The CAP was first introduced in 1966: 50 years ago! Its main aim is to help European farmers fulfil the need to feed over 500 million Europeans by providing a stable, sustainably produced supply of safe food at affordable prices for consumers. At the same time, it endeavours to guarantee a good standard of living for the estimated 22 million farmers and agricultural workers in Europe. It does this by various means including subsidies to farmers to help stabilise their incomes. The question is, will Brexit mean an end to the CAP subsidies and what are the alternatives? The government has promised to...

The best small business loans and other tips to save money during 2017 So here we are in 2017! Just as in our personal lives we will have hopes and dreams for our businesses over the coming year. Also as in our personal lives there will be things that we want to improve. One thing that many small businesses want and need to do is to save money. Every little helps as they say! Here are Ten Tips to help your business save money this year. 1. If you have your own premises then maximise energy efficiency . Look around for the best deals and also to see what external help may be available. For example, in Scotland there is an organisation called Zero Waste Scotland that is encouraging small business owners to apply for interest free government loans to improve energy efficiency. Such loans can be used to help enterprises to optimise their use of energy, water and waste under the expert guidance of a Resource Efficient Scotland expert advisor. 2. Also, if you have your own premises t...

Instant Business Loans supports small businesses with business loans to London and beyond Another Small Business Saturday has come and gone. If it has passed you by this time then why not plan to get involved next year? Small Business Saturday has been running in the UK since 2013. It is a non-commercial campaign that aims to highlight the success of small businesses and encourages consumers to support small businesses in their communities. As well they should - and probably do! The thing is that small business now contribute over £1.8 trillion a year to the economy and provide 60% of jobs in the private sector. Small businesses are critical to the future of our economy, especially with the debate over the timing and firmness seemingly set to continue for some considerable time! Small businesses are doing a wonderful job of harnessing innovation and entrepreneurialism in these uncertain times. At  Instant Business Loans we recognise, admire and respect this and are pro...

The best business loans to UK for start-up companies At  Instant Business Loans we are passionate about helping small businesses grow and supporting the release of creativity and entrepreneurship that our economy so desperately needs. Our specialism is providing business loans to UK small businesses that have been up and running for at least 24 months at the time of application. So we were delighted to see the growing success of a new initiative that is aimed particularly at start-ups. The Start-up Loans scheme is a government-backed initiative which aims to provide business loans and mentoring support to entrepreneurs. It offers an average loan of £5,286 to a new business, once their business idea has been approved by one of its delivery partners - see below. The scheme was launched as a pilot in England in September 2012, but is now UK wide and this year alone has issued 7,365 business loans to UK entrepreneurs. 23% of these loans were to new business in London and...

The best business loans for women entrepreneurs The Sunday Times ran an interesting article in its business section on Sunday 22nd January. Entitled “Thank you but we just don’t want your money” it featured two female entrepreneurs determined to go it alone, rather than bring in other investors who may then start to want to take control of various parts of the business. These women - Hannah Durant of The Great Escape game and Genevieve Sweeney, who runs a luxury knitwear company - would rather go for slower, lower growth than yield part of their business to win investment. But some kind of business funding is key to the success of any business. Many entrepreneurs are not able to draw on resources that they have already built up and need to seek alternative funding. It is essential that the financial community makes available business loans UK-wide, as self-employment in the UK is now at its highest level for 40 years. As part of the growing trend for self-employment, the number ...

The best small business loan to get your business started in 2017 2017 is well under way and for many of us the hopeful New Year resolutions are already ancient history! But it is still early enough in the year to decide to make significant changes during 2017. If you have always dreamed of starting your own business, then why not make 2017 the year that you make it happen! Running your own business could be the perfect next stage of your life. If you are successful then you will take control of your working life and be able to determine your work/life balance. How wonderful it would be to be your own boss for a change! If you would like to run your own business but don’t really know how to get started then here is our five stage plan for giving it a go! 1. Be very clear what you are trying to do However brilliant your business idea is, you need to be able to explain it clearly to others in order for it to stand a chance of success. You have to know what your core business is ...

Finding the best small business loan for your business There has been much talk over the past few months about being “open for business”. The phrase has been used to describe both Britain and London in the wake of the Brexit vote. But how about you? Are you ready to open for business? Our recent blog, New Year – new business? outlined a five stage plan for starting up your own business. But with experts, such as, The Federation of Small Businesses and Forbes quoting figures anywhere between 50-90% of start-up businesses failing within their first five years of operation, how ready are you? Take our quick ten question quiz to see whether or not you are ready to open for business? 1. Do you have the funding? Most new businesses do not have their own reserves to start with, but need to find a small business loan to help them get started. Check out our recent blog Start Up Loans to find out more about the government-backed Start Up Loan scheme, which provides small business loans...

Many small businesses are relying on small business loans to fund tax bills If you are either running a small business or about to start one then you need to be very clear on the taxes that you will need to pay as a business owner. It is easy to overlook the need to keep on top of your tax situation - and then be faced with huge bills that you weren’t expecting. According to Funding Options, the value of arrears on corporation tax payments increased by 15% last year, as businesses increasingly struggle to pay their tax bills. Some of these businesses are experiencing cashflow problems due to their own customers delaying payment. As a business owner, it is critical to understand that “cash is king” and – right from the start - set aside money to meet your tax bills, have a contingency budget and plough profit back into your business to help finance any unexpected costs. But what taxes does a small business owner have to pay? There are five taxes, as follows: 1. Income tax I...

When is a small business loan the best solution for your business? As a small business owner, you are constantly bombarded with decisions and it can sometimes be difficult to separate the proverbial wheat from the chaff. One of the major decisions you need to make is whether it is the right time to take on a small business loan. Many of us are cautious about extending our business finances to take on new debt: yet sometimes a loan is the best way - if not the only way - to fund business growth. So how can you judge whether now is the time to take that next step? Here are five good indicators for taking on a small business loan: 1. To secure new premises Perhaps you have been operating from home or in a commercial premises that is now too small for you? Whilst you need to minimise costs there will come a point in your business where the limitations of your space are beginning to restrict your operation. If it’s time to move onwards and upwards then a small business loan could he...

We are now well into 2017 and perhaps you’ve decided that now is the time to expand your business? Uncertain times to be sure, but life goes on, and as a small business owner you don’t want anything to hold you back from achieving your dream! You are not alone in this. In fact, the recent SME Growth Watch Report 2016 - from Hampshire Trust Bank - revealed that an overall 58% of UK entrepreneurs feel confident about obtaining additional business funding over the coming year to grow their businesses. This figure was slightly higher - 60% - in London, despite a 6% decline in business loans London from the previous year, and an overall drop in lending to SME’s by £2 billion. So, if you are one of those 60% in London thinking about financing the growth of your business you may already be starting to research business loans in London. You may well be starting from the premise that all lenders are pretty much the same, right? Wrong!! Instant Business Loans is a natural choice for ...

The financial world is giving mixed messages about the future of peer-to-peer lending. Just over a year ago, Lord Aidan Turner - the former chairman of the Financial Services Authority, i.e. Britain’s most senior financial regulator, - said on the Today programme that he thought a significant number of peer-to-peer lending firms would be caught out by an economic downturn. Turner did not mince his words, saying “The losses on peer-to-peer lending which will emerge within the next five to 10 years will make the worst bankers look like absolute lending geniuses". This caused much consternation in the financial community and may well have put some people off investing in peer-to-peer lending. However, in October he did something of a U-turn on this, now suggesting that the peer-to-peer lending sector might not only be a force for good, but its growth could play a significant role in making the credit system less risky: “there is a prima facie case that peer-to-peer lending might...

If you are considering applying for a small business loan to grow your business then people are probably telling you you need to be a homeowner? In this article we debunk that myth! We will look at why some lenders do require or prefer you to be a homeowner and why Instant Business Loans is different. There are two main reasons why some lenders require - or at least prefer - you to be a homeowner. The first is as security for the small business loan. The second is as confirmation of your creditworthiness. Let’s look briefly at both of these. Secured loans If you own a property and have a reserve of personal equity tied up in the home, this can be used as security against the loan. From a lender’s point of view it means that should anything go wrong with your business then equity from the home could be used to repay the loan. Securing a loan on your property could sometimes make the difference between yes and no to the outcome of your lending decision. However, if you are enteri...

The financial landscape in the UK is ever changing. These days if you need finance for your growing business, there are a range of avenues to try. From traditional banks to alternative financial services to crowdfunding to peer-to-peer lending - to name but a few - it can be difficult to work out where you are likely to find the best business loan in the UK! Surveys from the Bank of England over the last couple of years have shown a continued reduction in lending to small businesses by mainstream banks. Whilst this may have started as reluctance on the part of the banking community in light of the 2008 financial crash, it is partly due now to the amount of financial choice facing small businesses. So when seeking small business funding, where is the best place to start? How do you separate the wheat from the chaff? The term “Bankerpreneurs” was highlighted by Forbes back in 2014 but is just as relevant today, if not more so. The term refers to bankers who think like small busine...

Bad credit seems to be one of the things in life that stays with you forever. At least that’s how it can feel. If you have bad credit history either personally or in your business, many lenders are apparently unwilling to give you a second chance. But is this true? Is bad credit a death sentence or is it in fact possible to get a bad credit business loan? There are two issues here that need to be separated out but often get enmeshed together - and the attitude of traditional lenders can exacerbate this. The first issue is that you should only take out a new loan if the payments are affordable now.The second is that - irrespective of any new loan - you need to take steps to repair your bad credit history. The irony is that one way to repair credit history is to prove that you are now able to repay credit on a reliable and consistent basis: but most lenders will not lend to you because of your bad credit history. So it becomes a rather vicious circle! So what can be done? You are ...