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What can I use a LendingCrowd loan for?

Even the most successful companies may need a cash injection
to reach their full potential – and that’s where a business loan can help.

With LendingCrowd, you can use a business loan to refinance existing debt, making your outgoings more manageable. We can also finance loans for stock, cashflow, expansion, a new contract, management buy-out or an acquisition.

Refinance

It’s common for businesses to take on different forms of
finance over time to meet varying needs. For example, a short-term loan to
purchase a new piece of equipment, an overdraft to deal with seasonal cashflow
issues, and a credit card for day-to-day spending.

Refinancing your current finance arrangements with a
business loan could make life easier, as you’d have just one monthly payment to
make. You could also spread your repayments over a longer period, lowering your
monthly payments.

Buying stock

There may be times when businesses need to buy large amounts
of stock in advance, for example retailers that depend on peak trading seasons
for the bulk of their sales. A business loan could help to cover the upfront cost
and prepare for the busy season ahead.

Expansion

If you’re looking to expand your business, for example by
launching a new product, moving to larger premises or growing your team, the
initial costs may seem daunting. A business loan could help to fund your
ambitions by spreading the cost of your investment.

Before taking out a business loan, always consider the
following points:

Repayment terms: The length of time you will have to
repay a business loan can range from a few months to several years, so you’ll
need to be mindful of the need to make ongoing monthly repayments during the
term of the loan.

Personal guarantees: If you provide a personal
guarantee on a business loan, you are personally liable to repay the debt if
the business is unable to do so. It is important that you consider getting
independent legal advice to ensure you understand the terms of any personal
guarantee required by a lender.

Terms and conditions: If you breach any of the terms
and conditions of a business loan, this could affect your business’s ability to
borrow money again. For example, lenders will generally inform credit reference
agencies when repayments are missed, so it’s important to understand the terms
and conditions before you take out a loan and make sure you keep up to date
with repayments.

It’s important to make sure that taking out a loan is right
decision for you and your business. If you ever find that you are in
financial difficulty, you should let your lender know as soon as possible so
you can work together to find the best solution.

It takes just minutes to apply for a LendingCrowd business loan – start your journey today.

Please note: all applications are subject to LendingCrowd’s
risk appetite and will be subject to clearance of AML and Cifas checks.

Article author

What can I use a LendingCrowd loan for?

Gareth Mackie

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