Q: How easy is it for a business to access bank funding in the current climate?
A: The last few years have certainly been difficult for businesses at all levels of development, with banks being more cautious in their lending decisions. However, Santander has never stopped lending, and is committed to supporting its business customers now and in the future. No matter what stage your company is at, we are happy to talk through our solutions and find the best way forward. We are also working in partnership with the Government on several initiatives to support lending to business, including the Enterprise Finance Guarantee (EFG) and European Investment Bank (EIB) funding.
Q: When would you recommend a business loan?
A: Our unsecured business loans are a good choice if you’re looking for help to grow your business, expand your premises, or start another project. Because the rate and term are both fixed, you can plan your monthly payments to make sure they are affordable. Funding is available over periods up to 25 years and can be repaid monthly, quarterly or annually.
Q: How do business overdraft facilities work?
A:Most businesses will need an overdraft at some point, either to ease cash flow or for short-term financing. If something unexpected happens, they are useful as a quick way to access funds. Santander business overdrafts are straightforward – you only pay interest on the amount you are overdrawn, on the days you are overdrawn. We offer arranged overdrafts of between £500 and £25,000 without security and from £25,000 with security.
Q: Are there any other options for financing?
A: Our revolving credit arrangements can provide your organisation with a highly flexible way to improve cash flow. Rather than being tied into fixed monthly payments on a loan, a revolving facility allows you to access the value of funding your business needs at any given time. Interest is only payable on the balance of credit used, not on the full value of a loan. This credit facility can be used at any time up to an agreed limit, and is available in Sterling and foreign currency options.
Q: Is there anything to keep in mind when accessing lending?
A: Taking on debt should never be done lightly, so be honest about your business status and objectives when you speak with your Relationship Director. That way, we can make sure you choose the right solution for your needs, and that repayments are affordable. The aim is to help your business to grow rather than stretching yourself too far. Also, if your situation changes at any point, contact us as soon as possible so we can help.
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