Step 1: Deciding on business finance
Sometimes businesses need a financial boost to help them grow. But what's best for your business – a loan, overdraft or commercial mortgage? Consider the options so you can secure the best finance for your needs.
Remember, your Barclays Business Manager is here to give you 1-to-1 support while you're deciding on business financing – or whenever you need it along the way.
Loans, overdrafts and mortgages: what's the difference & which is best?
We offer flexible business loans ranging from £1,000 to £25,000 – as well as a more significant investment from £25,000 up to £1 million. A Barclays Business Manager can help you decide on the amount and repayment terms if you're unsure of how much you need – or can afford – to borrow.
Consider a business loan if:
- You need a cash injection to buy new equipment or a company vehicle
- You're looking for a flexible solution that can be repaid in convenient, fixed instalments, agreed with your Barclays Business Manager
Sometimes you might just need a safety net rather than a large lump sum – and a business overdraft might suit your business finance needs. Your Barclays Business Manager can help match your overdraft limit to your borrowing requirements – how much you need and how long you need it – and you only pay interest charges when you start using your overdraft.
An overdraft could help your business if:
- Cash is tight and you have short-term borrowing needs
- Trading is stronger at certain times of the year and you have a seasonal borrowing requirement
If you want to release equity from an existing property – or even buy a new property – a commercial mortgage could be an appropriate financing solution. You can opt to pay interest-only on your commercial mortgage for the first 3 years – perfect if you’re still getting off the ground. And we can agree a repayment period of anything from 1 to 25 years. The sum paid to you from equity release on an existing property can be used for any business purpose.
A commercial mortgage might suit you if:
- You want to buy new business premises or release some equity from an existing one
- You want to borrow any amount over £25,000 or borrow up to 80% of the value of your current property – note that there are limitations attached to certain industries and the loan is subject to lending on certain maximum and minimum amounts, so talk to your Barclays Business Manager for further information
- You have another property that you'd like to use to secure business finance
Alternatives to business lending or finance
Your Barclays Business Manager can advise you on a number of alternative financing options if business lending isn’t suitable for you.
No matter how carefully you manage your budget, your cashflow can be put under pressure if you’re faced with late customer payments or if your business grows more quickly than forecast. Cashflow finance is one way of solving the problem of outstanding invoices.
- Borrow up to 85% of the value of your unpaid invoices – and have the money in your account within 24 hours
- Keep control of your sales ledger, credit control and payment collections – or have us manage it for you
- Suitable for a wide range of businesses including manufacturers, wholesalers, transport firms, and employment agencies and providers
Enterprise Finance Guarantee (EFG)
Enterprise Finance Guarantee (EFG) acts as a guarantee for bank loans to small- and medium-sized businesses that lack the necessary security for the finance they need. In fact, a sixth of all loan offers made through the scheme have been made through Barclays.
Loans made through the EFG are available for between £1,000 and £1 million, with a choice of fixed or variable rate interest. Subject to eligibility and status, you choose your loan term – anything from three months to 10 years – and you can even take repayment holidays, giving you complete flexibility should your business needs change.
We can also suggest other funding options, such as a loan from a Community Development Finance Institution or an angel investor group, which can lend you the capital to help your business when it needs it most.
8-step guide to a successful application
Step 1: Deciding on business finance
1. Lines are open Monday to Friday, 8am–7pm. To maintain a quality service, we may monitor and record phone calls. Read our call charges and information
2. Lines open Monday to Friday, 8am–8pm. To maintain a quality service, we may monitor and record phone calls. Read our call charges and information
3. The Lending Code. Barclays Bank PLC is authorised and regulated by the Financial Services Authority ('FSA'). In respect of lending not regulated by the FSA under its Mortgage Conduct of Business sourcebook, Barclays Bank PLC subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. The Lending Code sets minimum standards of good practice when dealing with certain customers in the UK in relation to loans, current account overdrafts, charge cards and credit cards. Further details can be found at: Lending Standards Board