Frequently Asked Questions About Business Finance
About Us
Why should I use you?
Our team consists of ex-bankers and commercial finance brokers with a top performing track record to ensure that we can give you the best chance of getting the funding that you require.
We have access to the whole panel of lenders, charge no fees for our service and are committed to finding you the best solution as quickly as possible.
With strong links in the industry, we are always up-to-date with the lenders and leading developments to ensure that we can always provide our clients the best possible service.
On top of this:
- Get you a better approval as we know what the lenders are looking for.
- Get you a funding option that you didn’t even know existed.
- Instead of making multiple direct applications which could harm your credit rating from the multiple credit checks, we thoroughly review your application and only apply to the 2-3 most relevant lenders.
- Save you time and money spent trying to get an approval – leave it to us and you can focus on what matters most… your business!
What fees do you charge?
We do not charge you any fees. The lender’s pay us for the introduction and so there’s no difference for you whether you go through us or direct to them. As a result, it is in our best interests to get you the best possible offer.
How many lenders will you apply to?
We will fully assess your application based on your funding requirements and the information provided (financials).
From this, we will typically apply to 2 lenders, maximum 3 based on the lenders that will give you the best approval, and also most likely to approve you.
We do not spam your application out to the market and we will tailor your application to each individual lender to ensure best chance of success.
What funding do you offer?
Please see our Services page which lists the funding options that we offer.
I have poor credit, can you help?
Please refer to our how to get funding with poor credit blog.
Finance
How much can I borrow?
How much you can borrow depends on a range of different factors including your previous financial performance (turnover, profit, EBITDA, average monthly revenue), your projected forecasts if available/ upcoming contracts etc.
Different lenders assess affordability in different ways eg. some lenders will lend your EBITDA x 5, some will only lend up to as much equity that is available in the Director’s properties and other lenders will only lend around 1 month’s turnover.
We will be able to let you you know how much you can expect to borrow
Do I need to be a homeowner?
No, you do not need to be a homeowner in order to get funding. Please see our business loans for non homeowners page for more details.
There are plenty of options available if you aren’t a homeowner, but you are likely to be limited to a shorter term (12 months) or you may be limited as to how much you can borrow.
Can I get funding if I made a loss?
Yes, you can. Please see our funding for loss making businesses blog for more details.
There are options available based on your cash flow and average monthly turnover to check that you can afford the monthly repayments. These options are likely to be limited to 12 months unless you have security available such as assets or a property to secure against.
Do I need to sign a personal guarantee?
Most likely, yes. All the lenders except 2 require a personal guarantee. This does mean that we have a couple options available where you don’t need to sign a personal guarantee – get in touch if this is what you’re looking for.
For more details on personal guarantees, please see our personal gurantees explanation.
What documents do I need?
The documents required depends on the finance product you are looking for, but typically we require:
- Last 3 months business bank statements
- Latest filed accounts
Our view is that we will always tell you the minimum documents required, however the more information you can provide, the better as we will only use the information that supports your application.
Will you run a credit check on me?
We won’t run a credit check on you, no.
However, we will ask for your permission on the lenders behalf to run a credit check on you as all lenders will require this to assess your application.
You shouldn’t be concerned by this as:
- Majority of lenders will perform a soft credit check which will have no impact on your credit rating.
- We will only apply to maximum 2, possibly 3 lenders after assessing your application.
Will a loan affect my personal credit?
No, all loans are strictly business loans and therefore won’t show up on your personal credit file.
How long does it take to get funding?
Whilst a lot of lenders and brokers say within 24-48 hours, you can realistically expect to receive a decision within 2-3 days and funds within 24 hours of completing the loan documentation.
The quickest funding we’ve done is within 2 hours from application to funds in the business’ bank account so fast funding is definitely possible!
Can I repay early?
Yes, nearly all the lenders we work with allow early repayment at no cost and you only pay for the interest you’ve accrued, not the full amount.
Some lenders offer over-repayments throughout the term to reduce the total cost of the loan.
We will ask you if you are looking for early repayments features of the loan and if so, we will focus on the options that provide the most flexibility in this regard.
Get in Touch
020 4525 2521
info@activebusinessfinance.com
Best solution
Not sure which option is best? We will identify the best option for you or provide you with multiple options for you to decide on how you would like to proceed.
No fees
We charge no fees on all our business finance options as the lender’s pay us, not you. It is therefore in our best interests to find the best possible option for you.
Quick funding
We can get you funding within a few hours, but on average it will be within 2-3 working days. It is also dependent on the finance option that you’re looking for.