Business Loans for SME’s


In the UK, SMEs accounted for 99.9% of all private sector businesses at the start of 2018. Small businesses are the backbone of the commercial world – and every penny counts. Finding access to flexible SME finance can be the ideal thing to help facilitate your small business growth, and pave your path to success. Navigating the range of SME finance options available can be difficult, however, so it’s important to understand the basics about what sort of funding you might be able to get for your small or medium-sized business. Let’s learn a little more about SME finance in general, and how it can help your small business.



Article Contents


  1. What is SME finance?
  2. What options are available?
  3. How could you use an SME loan?
  4. What is the path to an SME loan?
  5. How can you make sure you’re approved?
  6. What do you need to apply?
  7. Apply with Capify today



What is SME finance?


Business Owner


An SME loan is a loan designed for SMEs, which has been tailored to suit their individual needs. An SME is a Small or Medium Enterprise. The exact definition varies, but it’s often accepted that businesses with anywhere from 1 to 250 employees are referred to as SMEs. SMEs accounted for 60% of private sector employment in 2018, roughly 16.3 million people.



What options are available?


Business Owner


As all SMEs require capital to grow, there is a range of SME loans and finance options available. Loans are available both secured and unsecured, there are merchant cash advances, as well as dedicated SME credit cards and overdrafts. You may also qualify for a Government loan. The right finance option for you depends on your business, your current situation, and your proposed path to growth.



How could you use an SME loan?


Working on laptop


Loans for SMEs can, in short, be used for anything you want to help your business grow. In every main sector, SMEs account for 99.5% of the businesses – so there is always room for growth, which a cash injection could help you achieve. This could be through becoming one of the 1.4 million small businesses that hire at least one employee.

You could put the money towards remodelling or redecorating your premises, starting a marketing campaign, or to help you finance essential equipment and supplies. You could also put the money towards purchasing stock to see you through busy seasonal periods, or for essential repairs and maintenance on a company vehicle. You can use your SME loan for anything you see fit, to help your small or medium-sized business achieve its potential.



What is the path to an SME loan?


We Are Open Sign


All SME loan providers offer a different application process. The main factor that is considered is your business performance. With Capify, for instance, you must run a limited company and process £10,000 a month through your business bank account before you can be considered for an SME loan. The reason for this is to determine the current financial health of your business and to ensure your business is able to support the loan repayments.

Does your business take card payments? If so, you might be better served with our merchant cash advance loan whereby the volume and average card transaction values will be taken into consideration when assessing you eligibility for finance. We can also fund SME’s via our MCA product with lower turnovers as long as your small medium enterprise processes at least £3,500 per month. Capify can offer anywhere between £3,500 – £500,000, subject to your requirements and your application. So, however much money you need to give your small business the right cash injection, you&’ll find it at Capify. Repayments can be flexible, depending on your circumstances – for example, a percentage of bank debits or card payments.



How can you make sure you’re approved?


Working on laptop


There is no way to guarantee approval, however there are things that you can do to give your application the best possible chance of being successful. The best thing is to make sure you have your relevant business documents to hand before you make your application. Generally, applications are relatively quickly processed, but if your lender has to wait for you to provide the relevant supporting documents, it can cause considerable delays.

Make sure that any information you do provide is entirely up to date and accurate. If you provide incorrect information, it could also cause delays in your application. Time is always of the essence, the sooner you get your loan approved and paid, the quicker you can build your business. If you’re unsure about anything, contact your proposed loan provider before you apply to make sure you understand everything you need.



What do you need to apply?


Business Owner


All lenders will have individual requirements before you can apply for SME finance, however, with Capify you must have been in business for at least six months. This is considerably shorter than most banks, which generally require a business to be established for two years before being eligible for a loan. Many businesses fail in their first year of operation, so the longer you’re established the less of a perceived risk a loan will be.

The exact nature of your business doesn’t matter, as Capify provides SME capital to a number of different businesses operating in a wide variety of industries. A good credit score is always going to be more beneficial for your application, but don’t be afraid to apply even if you have bad credit. Your business performance is what matters, and if your business is healthy and has a path for growth, you could still find the funding you need.

Use our Quick Quote toolto get your very own quote – you could be pre-approved in minutes.


Credit lines

This allows you to set up lines of credit with financial lenders to access extra cash. Many businesses use these to cover short-term issues but they can be hard to get and can also come with additional fees when used. It is also hard to increase your credit limit if needs be. Credit lines are pretty easy to use though and give you great flexibility in terms of cashflow.



Apply with Capify today


Business Meeting


With Capify you could be pre-approved for a small business loan in minutes, unlocking a valuable cash injection to help your SME grow – so make sure you contact today.


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.

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