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Commercial Loan

A commercial loan is a finance option only open to companies, or businesses that need a capital injection; business development may demand that you purchase more equipment, premises, or stock.

Whilst a commercial loan is your most flexible option, it’s not always the cheapest and leasing or factoring may be more viable; however a commercial loan company will offer you the flexibility to structure the repayments to suit your business needs.

As part of your application you will be asked to provide a track record of your trading, preferably three years worth of accounts. Your loan will be structured as either a variable rate that can fluctuate with any changes to the base rate, or a fixed rate, which will remain steady for the term of the loan and provide stability.

Some of the benefits to obtaining a commercial loan are that you retain ownership of the business - and any equipment you purchase with the loan, that these loans are typically very flexible and the proceeds can be used for almost any purpose, and interest payments are tax deductible.

One of the negative aspects is that your lender may ask for collateral to secure the commercial loan against, such as your personal property.



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Alliance and Leicester Loans


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