Business loans are a popular way for companies to borrow the funds they need to help them expand, buy new equipment or cover unexpected expenses. But with many options to choose from, it can be hard to know where to start.
This review looks at how Portman Finance could help you find the right loan for your business.
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Read the full methodologyEstablished in 2007, Portman Finance is both a direct lender and a broker. It offers a range of finance options for businesses under one roof. As a lender, it can lend its own money or lease assets. As a broker, it can approach a range of lenders on your behalf and help you find the right type of loan to suit your business, saving you time and effort.
When you enquire about a loan, Portman Finance explores its own lending options as well as those from a panel of lenders to help you find the right deal.
Portman Finance offers a variety of business loans, and you can check whether you’re eligible for them online without affecting your credit score. Depending on your business needs, you can choose from the following:
You can borrow between £10,000 to £2,000,000 with a business loan, and interest rates are tailored to your business. In certain circumstances, smaller loans are available, but this is less common.
Portman Finance typically provides unsecured business loans, which are not secured against an asset. However, you may have to sign a personal guarantee instead – this means you’ll be personally responsible for repaying the debt if your business can’t.
You can enquire about a business loan online without it affecting your credit score. A dedicated account manager will be in touch to discuss your needs and help you find the right deal, as well as collect relevant documentation and complete applications on your behalf.
With a short term business loan, you can borrow between £10,000 and £500,000 to be repaid over a term from 3 months to 2 years. This can be suitable if you need a quick cash injection but don’t want to be locked into a longer term loan.
Again, you can enquire easily online, and a dedicated account manager will discuss your requirements and help you find the right deal. If your application is accepted, the funds are usually released into your account within 24 hours.
Startup business loans are designed for businesses with no more than 3 years’ trading history, and you can borrow between £10,000 and £500,000. There are no minimum trading or turnover requirements.
It’s easy to get a quote online, and once accepted, the funds are released into your account.
If you’re a limited company, you’ll need to pay corporation tax. However, if you’re struggling to pay your bill in one go, you can take out a corporation tax loan to help you spread the cost of your bill over a longer period, typically 12 months or less. You’ll make more affordable monthly repayments of the loan value plus interest. Rates depend on the length of the loan, your business assets and your trading history.
You can also apply for VAT loans through Portman Finance. These let you spread the cost of your VAT bill over 3 to 12 months, making it more manageable and reducing the impact on your business cash flow. You can enquire online to get started.
The Recovery Loan Scheme (RLS) is a government-backed loan for small businesses. The latest iteration is running until 30 June 2024. UK businesses with a turnover of up to £45 million can take out a loan of between £10,000 and £2 million. Loans offer fixed rates of interest with terms of up to 6 years. Note that Portman Finance acts as a broker for the RLS, working with a number of lenders.
In addition, Portman Finance offers a number of alternative business asset finance options, including lease finance, hire purchase, equipment finance and supplier finance.
Some key features of Portman Finance business loans include:
Portman Finance is highly rated on review site Trustpilot. It scores 4.8 out of 5 from more than 600 reviews (updated January 2024), giving it an “excellent” rating.
Positive comments focus on the fantastic customer service and knowledgeable staff, as well as the easy and quick application process.
Most negative comments are from customers unhappy with the number of marketing emails received or those who had problems with the application process.
Whether you are eligible for a Portman Finance business loan depends on a number of factors, including your business’ trading history and your business credit history. The better your credit history, the more likely you will be accepted and the lower the interest rate you’ll likely secure.
Eligibility criteria can also depend on the type of loan you’re applying for. For example, if you’re applying for a startup loan, your business must have been trading for less than 36 months. If you’re applying for an RLS loan, you must be a UK business with at least 2 years of trading history, a minimum turnover of £100,000 and a maximum turnover of £45 million.
You can start the application process by filling in a short online form, providing details about your business and how much you want to borrow. This has no impact on your credit score. An account manager then contacts you to discuss your requirements and collect the necessary documentation. This could include photo ID, bank statements, profit and loss and balance sheets.
The account manager searches the market to help you find the most appropriate loan and guide you through the application process. Once the application is made in full, a hard credit check is carried out, which will show up on your business credit record.
If you’re not sure if a business loan is right for your company, there are plenty of alternative options to explore. These include:
A business credit card enables you to manage your cash flow and borrow flexibly. You can borrow up to your set credit limit as and when you need to and then repay this amount in flexible monthly instalments. Repayments are not fixed as they are with a loan, but if you don’t clear your balance each month, interest is usually charged.
If you need to acquire equipment, machinery or vehicles for your business, asset finance lets you do this without paying for the assets upfront. You could choose to do this through hire purchase or lease financing. At the end of the term, depending on the agreement, you might be able to keep the asset, return it, upgrade it or continue leasing it. Portman Finance offers asset finance.
Invoice finance is best suited to businesses with high-value invoices. Rather than waiting for them to be paid, a third party advances you up to 95% of the invoice value upfront. When the invoice is due, the third party collects the funds from the client, and you receive the remaining balance minus fees.
Unlike business loans, government grants don’t need to be repaid. Hundreds of grants are available, but you won’t qualify for all of them. Some are restricted to particular areas in the UK as well as certain sectors.
Equity crowdfunding enables you to raise funds from a group of individuals or organisations through an online platform. In return for investing in your business, these people might get a share in your business.
These are high-net-worth private individuals who invest their own money into your business in return for a stake in the company.
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