Bank finance

Banks are the main source of small business loans, but many other organisations provide loans at competitive rates.

Building societies offer business mortgages and personal loans.

You can also consider finance from a non-bank lender. See business financing options - an overview.

Getting the best loan deal

You should take care to choose the right loan option that best suits your business needs.

After you have chosen the type of loan that best suits your business needs, you should also try to get the best deal available. To ensure this, you should:

• Shop around - compare interest rates and negotiate to get the best deal, and ask for any special terms in writing.
• Use a finance broker - this can save you time and increase your chances by presenting your proposal efficiently to appropriate lenders.
• Research the small print - assess all lending criteria, such as interest rates, loan terms and set-up fees, plus special deals for start-ups. Consider having an expert, such as a solicitor, review the loan documents.
• Compare loans between different banks and be prepared to switch providers.