You will find it a lot more difficult to get a business loan on favourable conditions if you are in dire need of cash. This is because your interest rate and amount you can be loaned will depend on your ability to pay your loan back. If your cash position is precarious, then you'll find that your interest rate is higher as lender would feel that they are taking more risk. Should your cash position be strong, then you'll get better loan conditions.

In order to improve your chances of getting a loan, you need to show lender why you will be reliable with your loan repayments. If you have accounts, show lender your earnings history, and if possible a realistic assessment of your future earnings potential. It will also help you if you have personally invested in your own business. This will show lender that your interest will be aligned with theirs, and you are both sharing risks in your business.

Should you be a sole trader, you will be responsible and liable for repayments. In a partnership, all partners will be jointly responsible. Finally, if you are a company, directors are likely to be liable.

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The application process is a lot longer with secured loans than with unsecured loans, due to fact that your loan provider will need to value your home.

However, it is easier for you to be approved for a secured loan because you are using your home as security. It is very likely that your loan is far smaller than value of your home, so loan provider will view it as less of a risk.

With a secured personal loan you can borrow from £5,000 to £75,000 with low monthly repayments. Loans secured on property can be repaid over a period of between 5 years and 25 years .

A Secured Personal Loan has following advantages:

Offers a flexible and fast way of raising cash

Loans are available for most purposes including clearing other expensive credit commitments

Since your property is used as security for loan you will be able to take advantage of special interest rates available

There are usually no valuation or legal fees to pay

Choice of sum borrowed at a monthly repayment you feel able to manage comfortably

Loans are available over a relatively short term

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