More commonly referred to as medium to long term loans, the definition is any loan where the repayment term is more than one year. In reality, most long term business loans have terms of up to five years.
Our role at Business Finance Solutions (UK) Ltd. Is to provide impartial advice on what is available in the financial markets. We keep abreast of developments, such as new financial products and funding options.
Why consider a long term loan?
Long term loans are a very important part of business finance because they spread the repayments over a term that means the regular payments are small enough to be accommodated from cash flow. They enable up front capital for acquiring balance sheet assets as well as representing funding for expansion plans and developing new product ranges or breaking into new markets.
There are two types of loan in this category:
- Fixed interest loans where the regular repayment never varies during the life of the loan
- Variable rate loans where the lender may alter the interest element of repayments
A business may consider the benefits of a medium to long term loan for many reasons:
- Start-ups can finance setting up a business, including premises, IT, staff costs and even cash flow
- Established businesses can launch expansion plans and new initiatives
- They facilitate long term growth of the business
- Capital costs of assets are perfect candidates for long term loans
- They are more efficient for a business than trying to build savings from cashflow
Why consider Business Finance Solutions (UK) Ltd when seeking a long term loan?
Traditionally, banks have been the first port of call for businesses seeking medium to long term loans. Even though banks still advertise them, approval criteria have been tightened in recent years and many SMEs find it difficult to access them.
Our area of expertise lies in our in-depth knowledge of the alternative finance markets. We know which lenders will consider advancing long term loans, and also which sectors and business types they favour. We also know how each lender likes applications to be “packaged” – all of which means that we can source your requirements quickly and without fuss.
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For more information, please speak with one of our advisers today by calling 0345 50 50 888.