What is a flexible business loan?

 

Also known as a flexi loan, a flexible loan gives borrowers the freedom to make higher or lower repayments as funds permit, as well as alter the total amount borrowed. Depending on the product, you may also be able to miss the occasional payment. The Credit Agreement between lender and borrower will describe these options in detail.

There are all sorts of reasons why a small- or medium-sized business could use some additional capital: from temporary cash flow problems through to the need to finance fresh equipment or expertise in order to grow the business or diversify, fresh funds are frequently vital to sustainable success. Unfortunately, finding a loan can be difficult for lots of reasons. Businesses that haven’t been trading that long; those that are in high-risk sectors or those that aren’t making a significant profit may all find that locating a suitable source of finance can be a challenge. As trusted direct loan providers, we can help. Capify offer flexible business loans that can be used by almost any business on what they need to move forward.

 

 

Article Contents

 

  1. How does a flexible business loan work?
  2. Who are flexible business loans for?
  3. What are the pros and cons of flexible business loans?
  4. Advantages
  5. Disadvantages
  6. Getting a loan – what’s assessed?

 

 

 

How does a flexible business loan work?

 

Business Owner

 

To take advantage of a flexible loan from us, just fill in the short, online application form. We only ask for the information that’s necessary to process your application. Once we have considered your application, we will confirm whether we are able to offer you finance. If we can, you’ll need to sign the relevant paperwork and return it to us (this can be done virtually). We will then release the required funds promptly into your business bank account.

 

 

Who are flexible business loans for?

 

Cafer Owner

 

A wide variety of organisations can take advantage of flexible small business loans. Businesses or organisations must be a legal entity, need to have a business bank account and have the paperwork needed to verify financial details. Potential applicants include:

– Small businesses (including sole trader enterprises)

– Constituted community groups

– Charities

 

 

What are the pros and cons of flexible business loans?

 

Woman Cafe Texting

 

Advantages

 

Laptop Coffee

 

– Fast access to finance.
– Unsecured (property or assets are not at risk if you do not keep up the repayments).
– Freedom to use the funds as required within the business.
– The ability to reduce interest through faster repayments, or to borrow more if needed.

 

 

Disadvantages

 

Working on laptop

 

– The flexibility may encourage some businesses to take longer to repay than they need.
– There is no guarantee that the loan will improve the financial health of the business.
– Borrowing carries an interest charge, which diverts profit away from the business.
– A lack of planning may mean that the funds are not spent in the best way.

 

 

Getting a loan – what’s assessed?

 

Business Owner Working on Laptop

 

We look at the financial circumstances of the business, past credit history and repayment proposals.

We also undertake relevant identity checks.

What can I use the flexible loan for?

There are no stipulations regarding how one of our loans may be used. Common uses include:

– Cash flow easement.
– A marketing or publicity campaign.
– New equipment or supplies for a fresh trading initiative.
– Finance towards fresh premises.

As a trusted direct lender with over ten years’ experience in working with small businesses, we are ideally placed to provide the loan you need. Rated excellent on Trustpilot, more than 80% of our customers are repeat borrowers! Get in touch now to start your loan application process.

 

 

Raise £3,500 to over £150,000 for your small business

Capify offers flexible finance with simple repayments. There are no massive monthly Direct Debits to think about, just small manageable payments that are easy to keep track of.

Get Approved

We’re trusted by thousands of small and
medium sized businesses.

We take pride in working with thousands of UK businesses, and we really appreciate what they say about our
products and services.