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How To Get a Business Loan

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A lot of people ask us how to get a business loan, so in this quick 5-minute post we will answer this question.

First things first, we need to understand if you’re yet to start in business and seeking a Start-Up Loan, or if you are an existing business seeking a small business loan.

These two scenarios may seem similar, yet they are vastly different, as are the conditions and measures lenders use to decide if they will lend you the money.

Although Hamilton Wood and Company only offers loans to businesses already trading beyond the 12 months mark, we can point you in the right direction if you’re just starting out.

We do not provide Start-Up Loans.  So, if you’re looking for one, we highly recommend contacting The Start-Up Loans Company which can lend up to £25,000 for people still at the ‘I’ve had this idea and have written a business plan stage’ or, still within the first 48 months of trading since setting up shop.

If you have not yet headed over to The Start-Up Loans Company, then we assume you are here trying to figure out how to get the best business loan you can, and this is something we can help with.

For any business, accessing affordable credit is important for a number of reasons, it allows you to access the money your business needs to scale up, invest in new equipment, improve available working capital and many other reasons ranging from helping to cover wages when there is a temporary gap in available money to paying VAT bills etc.

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Another question related to ‘How do I get a business loan?’ is ‘How do I get an affordable business loan? So, in this post, we will try and provide as much detail as possible.

If your business is trying to get the cheapest business loan it can, then it makes sense to do a bit of prep work and planning in the months leading up to when you apply, although we appreciate this isn’t always possible.

Make sure all of your outstanding invoices are paid and up to date.  Make sure that utility bills are paid and that there has been a healthy inflow of money into your business bank account.

One of the key thing’s lenders look for is ‘affordability’ e.g. ‘If we lend your Company the money, can you afford to pay it back and will this help, or hurt your business?’

Business loans are a tool for businesses, nothing more.  Credit used responsibly will help your Company grow.

Credit used irresponsibly can send your business on a downward spiral of ‘robbing Peter to pay Paul’ and could ultimately see your business fending off creditors, so choosing your lending partner wisely makes good commercial sense, and we hope we can help you in this area.

There are many companies offering ‘Fast Finance’ but all that glitters is not gold. 

Typically short term business loans come with much higher APR’s, and APR’s are reflective of the total cost of borrowing the money over the agreed term.

Longer-term business loans often come with much lower APR’s compared to short-term business loans and bridging loans however, the rates of interest do differ from lender to lender, broker to broker.

How to qualify for a small business loan UK - Picture of Loan Calculator - Hamilton Wood and Company Nottingham Manchester (1)

Not only does the APR affect how much the loan costs, so too does the broker fee or loan setup fee being charged by either the broker or lender.

Some unscrupulous lenders will hammer Companies with very good Credit with high APR’s and high setup fees because they’re trying to make a quick buck at your expense, and this is wrong for a whole variety of reasons.

Hamilton Wood and Company are vehemently opposed to such underhand tactics.

For some firms to ‘stitch up’ a Company with decent credit could make it more likely that this could expose the borrower to unnecessary risk.

If a Company finds itself paying more for a loan they could have got cheaper elsewhere, this can lead to a never-ending cycle of debt that grows increasingly difficult to manage.

This can put the Company at risk of closure, peoples livelihoods at risk, employees facing lay-off and possibly even worse if a Company was asked to provide security for the loan to be approved by securing against held assets, these can be ‘recovered’ or taken from the Company should it default so you can see the danger some unscrupulous lenders are exposing businesses to.

Not Hamilton Wood and Company.  We do not work with lenders we wouldn’t use ourselves.  We operate a two-strikes and you’re out policy for our panel of lenders. We are committed to treating the customer fairly.


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So, where do Hamilton Wood and Company differ and how can we help you get a competitive, affordable small business loan?

With Hamilton Wood & Company, we seek to provide your business with a number of options when it comes to looking to borrow.

Not only do we offer competitive APR loans for all of our loan products, but we also offer competitive loan arrangement fees too. We are on your side.

We are your strategic business partner throughout your business journey.  We are here to help your business succeed.

How Do I Qualify for a Business Loan?

Things we will ask you for when you apply for a business loan are:

  • Your up-to-date management accounts
  • Your last 3-6 months business bank statements
  • Your personal details
  • The last two years filed accounts
  • Proof of at least £2000 cash in-flows to the business each month

Transparency is key here.  We get it, sometimes all businesses may find themselves going through a slight dip in turnover and this is why we are able to take a more balanced look at your business performance over the last few years or at least the last 12m.

With Hamilton Wood and Company we are a national provider of specialist R&D Tax Credit, Capital Allowance and Small Business Funding services and we can provide loans from just £1000 to over £600 million subject to status, terms and conditions.

We provide a range of business finance products to help your business operate more freely.

If you would like our help to find an affordable business loan, please start your inquiry by clicking here.

Hamilton Wood and Company