- How does a top-up loan for business work?
- When am I eligible for a business loan top-up?
- How can I apply for a business loan top-up?
- Why top-up your business finance with Capify?
An overview of topping up business loans
Business needs rarely stay the same for long, which is why many businesses will want to borrow again before the balance of their previous loan has been cleared. One of the easiest ways to do this is with a business loan top-up. If it's become apparent that an extra cash injection is needed to enable your business to grow, take a look at how a top-up loan could be exactly what you're looking for.
The idea behind a topping up business loan is that you take out a fresh loan, which is large enough to cover the balance of what you owe on your existing loan, as well as additional money that you can use to benefit your business. Taking out a top-up loan means that you will still only be servicing one loan, just for a larger amount than previously. For example, if you currently owe £5,000 on a previous loan and also need £5,000 for a new venture, fresh purchase or some other business use, your top-up loan would need to be for a total of £10,000. The main difference between a top-up loan and other financial products is that the loan clears the balance of your existing borrowing (so provides an early repayment method for your current loan), as well as providing additional capital.
To extend business loan arrangements with Capify, you need to have already taken out a business loan or merchant cash advance and have paid back at least 60% of it. Simply put, if you’ve taken out a loan for £10,000 previously, you need to have paid back at least £6,000 to be eligible for a top-up loan. You also need to be confident that you will be able to service the repayments. Before approving the loan top-up, you will need to undergo eligibility checks and a credit check. As a responsible lender we are required to run credit checks even on existing customer’s wishes to extend or top up their business loan or merchant cash advance.
In the first instance, speak with your account manager. They will be best placed to not only give you all the information about a top-up loan you need to make a suitable decision, but can also give you some idea of the amount that you might be able to realistically borrow and how best to tailor a top- up loan to suit your individual business requirements.
Capify provides tailored finance solutions which are customised to meet the needs of businesses. We understand that no two businesses are exactly the same, which is why we try to find creative, constructive lending solutions for every one of our clients. If you need to borrow more money for your business, the Capify team will do their utmost to ensure you end up with an affordable top up loan which you have the capacity to service and which will be sufficient to give your business the additional cash it needs to bring about sustainable success.
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