There are several reasons that may persuade you to seek a new business loan from a bank.
Not knowing about other options
You may not know that there are other finance options available when you apply for a bank loan. We recommend finding out about all of your options, even if it’s start up loan from the government, before you start the application process or accept a new business loan from a bank.
Not wanting to give away equity
You might be fully aware of the different investor schemes available but have no intention of giving away equity for your business in exchange for the amount of money you’re looking to get from the bank.
Not being offered investment from another source
It may be that you already tried to go down the investment route but the return of investment was not high enough for an external investor.
Not needing a lot of money
If you’re looking for under 20k or even £50k, a bank loan may be the right option for you. If that’s the case then we urge you to ensure your financials add up and that you are able to pay back the loan without causing damage to your life. – This is exactly what a bank wants to see, and that is where the business plan comes in.