A guide to personal and business loan quotes

22 Sept 2020

Business and personal loan quotes allow you to compare loans from different lenders at a glance. Personal loan quotes for fixed and variable rate personal loans are available from a handful of comparison websites. You’ll be expected to provide some basic information in order to retrieve your quotes, such as the type of loan you require, how much you’d like to borrow and the duration of the loan, e.g. five years.

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Business loan quotes work in a similar way—you provide some basic information relating to how much you need to borrow, what it’s for and how quickly you need business finance, submit your enquiry and the platform’s algorithm will work behind the scenes to find the most appropriate loan options. Funding Options can provide you with a business loan online quote that won’t affect your credit score. In fact, we’ve been chosen by the government-owned British Business Bank as a designated platform to find finance for businesses.

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Loans typically fall into two categories: secured and unsecured. When it comes to personal loans, a secured loan is like a mortgage in the sense that the property is usually used as security and it could be at risk if the repayments aren’t met. Whereas with an unsecured loan, your property isn’t immediately at risk if you don’t keep up with repayments, however the lender can take court action against you. 

Secured business loans are for businesses that have tangible assets such as commercial property, vehicles, or equipment, as well as company directors who would rather not offer a personal guarantee. Unsecured business loans are designed with businesses that don’t have many assets in mind, together with those who would prefer not to offer security or startups are growing quickly and need finance fast.

What can I use my loan for?

Personal loans can be used for a number of purposes. Some common reasons include buying a car, home repairs/improvements and debt consolidation. There are also things you shouldn’t use a personal loan for, such as starting a business, paying household bills and investing in stocks and shares. If you’re in financial difficulty, there are details of where to go for advice on the Money Advice Service’s Debt Advice Locator page. 

Unlike a personal loan, a business loan is designed for business use. Depending on the type of loan you get, it can be used for a number of purposes. As a business owner, you may need funding to expand your operations or to boost short-term cash flow. You might also decide to take out a business loan to help you purchase new stock or equipment/machinery, hire additional employees or to move into a business premises.  

Do I need a good credit rating to get a loan?

If your personal credit rating isn’t perfect, you may still be accepted for a personal loan but have to pay a significantly higher interest rate. It’s always best to check with the lender before you apply.

While having a good business credit rating can certainly increase your chances of getting business finance, you might still be able to receive a loan with a poor business credit rating. If you’re willing to offer security or a personal guarantee, the number of choices available might even surprise you. We’re seeing an increase in the number of lenders that offer alternative types of lending and more of them are providing finance solutions for those with bad credit. 

What’s the cheapest way to borrow money?

Interest rates are only one piece of the puzzle when it comes to working out what the cheapest way to borrow money is. The loan amount, its term (how long it’s for) and factors such as set up and early repayment fees all add up and should be taken into consideration. 

Looking for a business loan?

Once you’ve obtained your business loan quote through us we can help you find the best financial product on the market for your needs and help you through the process to ensure you get the best deal.

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Stuart Lawson

Chief Commercial Officer

Stuart is Chief Commercial Officer at Funding Options where he plays a key role in driving the growth of the business and its relationships with more than 120 partners. A finance industry veteran, he has a strong background in alternative finance, corporate and commercial banking, as well as global transaction banking.

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