I have done some research on different bank loans.
HSBC do small business loans they let you borrow between £1,000 and £25,000, its quick and easy to arrange, you can choose to repay the loan over 12 months to 10 years. And the interest rate and repayments are fixed for life of the loan. Meaning I know exactly what the monthly repayments will be.
Hsbc interest rates
Natwest do small business loans they let you borrow between £1,000 and £15,000, its quick and easy to arrange, you can choose to repay the loan over 12 months to 10 years. But if you choose to pay back the loan over 12 months the interest rates go up which means if I decide to pay back the loan over a 5 yrs im going to be paying more money back.
Natwest interest rates
I also did some research on different funding opportunities in Canterbury.
I fund a small firm loan guarantee scheme this loan is for small business that should have a turnover of less than 1.5million a year. The loans are available for two to ten years on sums from £5000 to £100,000 and borrowers pay 1.5% of the loan each year.
I also found a grant for research and development this focuses on giving south east companies the edge over global competitors this great is for people who have good ideas but need financial help grants range from £20,000 to £500,000.
I have decided I’m going to use a bank loan, I have decided to use HSBC this is because HSBC do small business loans which lets you borrow between £1,000 and £25,000 and the interest rates are fixed for life of the loan which means I will know exactly how I have to pay back each month without the fear of the interest rates going up and theres the chose of paying the loan back quickly or paying the loan back slowly.
I didn’t go for the natwest bank loan because the interest rates are not fixed which means I could end up paying back more then what I expected each month and if I wanted to pay the loan back over 5yr I will have to pay more interest because the interest rates increase if you choose to pay your loan back slowly.
