Business Loans

Eligibility for a business loan depends on your circumstances and those of your business. Many businesses will find that they are eligible for a loan. Still, the types of loans and available rates will vary depending on several factors, including your credit history and the business’s trading history. It is important to be as transparent as possible to gain a clearer and more accurate understanding of the type of loan that can be offered to you. 

At Portman, we operate as both a lender and a broker and can make our own decisions or find the best lender for you.

There may be several key moments in the growth and progression of a business when a financial injection is needed. Start-up businesses often need to borrow when buying their initial equipment or funding their premises. 

After some time, many businesses look to expand, leading them to look for larger premises or more expensive equipment. Seasonal businesses or those undertaking long projects with staged payments sometimes like to smooth out their cash flow if costs are relatively static during the year. 

In addition, there are times that businesses, through no fault of their own, need a bit of financial support through a particularly tough trading period in their industry. A key example of this could be the COVID-19 Pandemic ripping through countless industries and causing countless companies to struggle.

Each business is different and has factors that could play a part in its eligibility for a particular loan. Factors like individual trading circumstances and history affect whether finance is right for you and the amount of finance that is appropriate.

If you do decide either a long-term or short-term loan is a good option, Portman operates as both a lender and broker who work with businesses of all types of credit history. As a result, Portman is best placed to find you the right deal.

Portman typically sources funding from £10,000 but is able to offer lower value funding in some circumstances. We do work with businesses of all sizes and can secure funding for both small businesses or new starts, as well as established larger firms.

The ability to get a loan and the best available rate depends on your business’ individual trading history as well as the financial history of any directors. It may be easier for long-established businesses with a healthy balance sheet to obtain finance than for newer businesses or those who have had financial difficulties. However, as both a lender and a broker, Portman can match the requirements of our customers with the lender most likely to offer finance, giving you a greater chance of success.

Business loans are ‘secured’ against existing commercial assets. This could include machinery, vehicles or property. What this means is that should the borrower be unable to repay the amount owed, the lender can sell those items in order to recoup the money it is owed. An unsecured loan does not put your business assets at risk, however, they carry greater risk for the lender and so are likely to be more expensive.

You can enquire online by using our eligibility checker. Click ‘get started’ at the top of the page and complete your details on the enquiry form. Once you have submitted your details, one of our account managers will contact you to discuss your needs. We do need some business documentation from you but will complete proposals and applications on your behalf.

You can enquire online by using our eligibility checker enquiry form. Click ‘get started’ at the top of the page and complete your details on the enquiry form. Once you have submitted your details, one of our account managers will contact you to discuss your needs. We do need some business documentation from you but will complete proposals and applications on your behalf. 

Only you know when your business is ready for a financial injection. A business loan has many key advantages that could assist your business, allowing you to:

• Get what you need instantly
• Secure fixed monthly repayments, giving you financial security  
• Cover immediate costs and make repayments whilst your business generates revenue and develops a stronger foundation
• Build your business credit score for the future and strengthen your financial footing
• Expand your existing premises and grow your business
• Grab an opportunity that’s bigger than the potential repayments 
• Attract the best talent 

If you’re still unsure if a business loan is the right choice for your business, there are other funding options that might help. Take a look at our guide to managing your cashflow, or talk to our Team for expert advice.

Business loans can be used for any legitimate business purpose, you know your business and goals best, and you choose where to invest. Loans are often used to:

• Boost cashflow 
• Cover operating costs and expenses 
• Cover staff wages 
• Fill the gap between invoices and getting paid 
• Supplement seasonal income 
• Purchase materials, inventory or stock 
• Ensure cashflow during a project with staged customer payments
• An alternative to unarranged overdrafts or credit cards

If lines of credit are exhausted first, a company may not have funds for day-to-day expenses and contingency. They will also affect your ability to obtain further credit in the form of a loan.

The interest rates available to each customer vary based on a large number of factors including the trading history and credit rating of the business, the credit history of any company directors, company turnover, how much money is required and what the funds are being used for. For customers with the best credit rating, Annual Flat Rates start from: Vehicle Finance – 5.5% Asset / Equipment Finance – 5.9% Growth Guarantee Scheme Asset Finance – 6.49% Unsecured Term Loan – 7.2% No PG Tax Loan – 9.4% Short-term Loan – 12.3% Short-term Flexi-Loan – 13.2%

Unfortunately, Portman can only finance companies registered and operating in the UK.

Terms are available between 2 and 6 years. Options available to you may be dependent on the circumstances of your business, but then the final choice is up to you.

On the contrary, asset finance is designed to spread costs over a period of time, whilst your new equipment generates revenue. Using your business’ cash or credit card and buying outright can mean that there’s no free cash for emergencies or to cover fluctuations in demand. Using finance helps even out the monthly budget and choosing a lease finance or hire purchase deal allows you to treat tax in different ways which may suit your business better. Finance allows you to get what you need now, rather than waiting to buy outright, this helps avoid inflation, as you buy at today’s prices and means you have use of the asset immediately to help grow your business.

Whilst banks can offer different rates, they often reject certain type of purchase, businesses in different industries and have very strict lending criteria. At Portman we deal with a panel of over 40 lenders as well funding businesses with our own money. We have access to specialist lenders and specialist types of finance, giving a variety of options and a greater chance of success. Portman may have rates that are not available to a customer who goes direct and can also explore the whole lending market in one go, saving you time. We have access to specialist lenders that are not available to individuals and can even put together finance packages from multiple lenders. All of which gives you competitive rates, with a greater chance of acceptance.