Sensible Unsecured Business Loans Are Still Available
Funding Solutions UK
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Funding Solutions UK
Making Business Finance Simple. We specialise in cash flow solutions.
'Sensible' means a loan over reasonable term and at a reasonable rate.
We have just put in place a ￡500,000 loan for a client of ours. It has a 5 year term and is at an interest rate of 10.5% p.a.
In the current market I would suggest that this is very competitive.
The unsecured loan market came to the fore delivering CBILS loans. In doing so it arguably cannibalised its own market. There are now less lenders and rates have rocketed and
In what is left of the unsecured loan market, much of it offers high interest loans over a very short term. Not only will these loans heavily impact on your profit and loss statement but they weigh heavily on the cash flow of the business.
The loan we have provided our client is structured over a manageable term at a reasonable interest rate.
So what are the criteria?
- Loans of between ￡250,000 and ￡1m
- Loans are typically provided at up to 2 X EBITDA
- Debt servicing is a focus. EBITDA less dividends should be 1.5 X the total debt service costs
Just a reminder that sensible funding is still available.