SME loans are loans specifically designed for the individual needs of small and medium enterprises (SME). However, what officially constitutes as an SME in the UK has always been unclear. HMRC, Companies House, and the Department of Business all have different classifications for SME, which has a negative impact when these types of businesses try to source funding, as every bank or lender also has different definitions and criteria for SME finance.
If your company does meet the SME standards of a bank or lender, there are different finance solutions available for your business:
It’s obvious that there are many options for SME financing that are worth looking into. Just keep in mind that your perfect SME loan or finance option depends on your business, its current situation, and the goals you’ve set for the future.
One financing solution that is ideal for SMEs is a merchant cash advance, as traditional benchmarks like the number of staff and annual turnover are less relevant to the funding decision.
A merchant cash advance is an alternative business funding option that acts like a traditional SME loan. However, there are no fixed terms or APRs, and you can repay comfortably through a small percentage of your future credit and debit card earnings. This way, repayments are in line with your business’ cash flow.
We advance 100% of your average monthly turnover. This means a business that processes £10,000 per month in card sales is eligible to receive £10,000 in funding. As an advantageous SME loan alternative, there are also no APR or fixed terms, and repayments are straightforward.
Securing business finance can be tricky, but here at 365 Business Finance, we can provide your UK SMEs with unsecured funding between £10,000 to £300,000 with no APR, fixed monthly payments or hidden fees. Instead, repayments are based on your monthly credit and debit card earnings, so you only repay when your customers pay you.
Our merchant cash advance serves as a flexible alternative to SME loans and is responsive to the cyclical challenges commonly faced by small businesses in the UK. When sales are up, you will be able to pay off more of your balance. When sales are down, you will be able to repay a smaller amount, causing less strain on your business’ cash flow.
Further advantages of this SME loan alternative include a fast application process, with an acceptance rate of more than 90%, and simple requirements for approval, as you don’t need to submit business plans or collateral to access funds through a merchant cash advance.
Request a non-binding offer now. Our merchant cash advance offers a swift and versatile alternative to traditional SME loans and overdrafts.
There are two requirements you should fulfil to qualify for SME finance with us: your company should be in business for at least 6 months by the time you apply for our cash advance, and your credit and debit card turnover must average £10,000 per month.
Not quite sure yet whether you qualify or not? Reach out to our customer service team, they will be happy to help with any questions you might have.
Qualification for SME Finance is simple: Contact our customer services team to see if you are eligible.
Most lenders have their own requirements for giving out SME loans. With our SME financing alternative, you don’t have to worry about any of the mentioned qualifications. All we require to approve your business for a loan is that you’ve been in business for at least 6 months and that your average credit and debit card sales exceed £10,000 per month.
There are no standard restrictions on the uses of SME loans. You can use the funding to develop your SME however you see fit, be it for long term investments or as working capital.
Whether an SME loan affects your credit score depends on the type of financing and the lending party you choose. If they require a hard credit check, it is likely to lower your score. When and how you handle your repayments also has a long-term impact – it will be reflected in your credit score if you don’t repay your debts reliably. However, there are many further options for SME financing that do not automatically affect your credit score, such as our merchant cash advance.
Once again, the answer to this question depends on the financing option you choose. There are some SME loans specifically designed for certain business sectors, where it does matter. However, the vast majority of SME financing options are offered regardless of your business sector.
The exact application process for an SME loan differs depending on the lending party you apply to. Generally, you should check whether you meet their requirements for eligibility before signing up for a quick cash injection. Most lenders or banks offer individual quotes before you start your application. You can apply for a merchant cash advance with us the same way. Get your individually tailored, no-obligation quote here. Or, if you prefer speaking to someone directly, you can email us on email@example.com or call 0207 1000 365 to get personal assistance from our team.
Although there is no general obligation to provide collateral when taking out an SME loan, some providers may require some type of security when you apply. At 365 Business Finance, we don’t require security for our merchant cash advances.
It may sound complicated at first, but our merchant cash advances are based on what is actually a simple concept: we lend you money, which you pay back through a small percentage of your future credit and debit card sales.
To make this funding solution an uncomplicated alternative to SME loans, we don't require fixed payments from business owners – your repayments are based entirely on your cash flow. This way, the time it takes until you have fully repaid your merchant cash advance depends on your sales and customers.
Instead of interest charges, APRs or late fees, we add an all-inclusive cost to your advance, so you know exactly what you’re paying for before you receive the money. You can quickly apply online, without any security or business plans, and receive a funding decision within 24 hours!
None. Instead of interest rates or APRs, with our merchant cash advance you only pay a single, all-inclusive sum, which is added to the advance.
For a non-binding quote on our merchant cash advance product, please contact our customer service team.
You simply pay back a small, pre-agreed portion of your credit and debit card sales, so the exact length of time it takes to pay back a merchant cash advance depends on when you make sales to your customers. There are no fixed weekly or monthly payments.
With our merchant cash advance, you can borrow the perfect amount of money you need for your SME. Our offers start at a minimum of £10,000 and can be increased up to the general maximum of £300,000. Individual limits depend on your turnover. As a rule, your company's average monthly credit and debit card sales usually represent the total amount of funding you will receive.
In case you require a bigger amount for SME financing, please contact our office. We will be happy to help and offer a bespoke quote that matches your SME’s needs.
Yes. In addition to short term offers, we are happy to provide our merchant cash advances to your SME on an ongoing basis.
You might also benefit from the flexibility of our merchant cash advance product. If you need additional access to finance, you can always apply for SME loans, or different loan schemes elsewhere.
Yes, we cooperate with a number of financial and credit brokers, as well as introducers, to help their clients access unsecured financing and SME loans.
Please contact our Partnerships Team at firstname.lastname@example.org or call 0207 1000 365 to find out more about our partner referral scheme. We offer informative training on our financial product, as well as co-branded marketing materials and a competitive commission scheme.