Specialist service
Large Business Loans
Or you can book a free consultation with one of our expert advisors at a convenient time for you below.
A large business loan is a substantial sum of money borrowed by a business from a financial institution intended for significant expenses or investments. These loans typically range from hundreds of thousands to millions of pounds, depending on the lender and the needs of the business.
Large business loans are often used for major projects such as expanding operations, purchasing expensive equipment or real estate, undertaking large-scale renovations, or financing substantial inventory purchases.
Because of the higher amounts involved, securing a large business loan usually requires a more rigorous application process, which may include providing detailed business plans, financial statements, and collateral.
The repayment terms for large business loans can also vary, with some offering long-term repayment plans spanning several years to accommodate the size of the loan and ensure manageable monthly payments.
Types of Large Business Loans We Can Source
Pros & Cons of Large Business Loans
Can You Get a Million Pound Business Loan?
What is the Easiest Business Loan to Get in the UK?
Does a Business Loan Affect Personal Credit?
How to Acess a Large Business Loan
A business loan is a sum of money borrowed from a lender to cover various business-related expenses. Like any loan, it’s typically repaid with added over a set period.
You can use a business loan to start a new business, covering startup costs like equipment, inventory, and initial operating expenses. If you're looking to expand, the loan can fund new locations, product lines, or additional staff.
It can also provide the working capital you need to manage cash flow during slow seasons or to cover unexpected expenses. Additionally, you can use a business loan to purchase essential equipment or inventory to meet demand or to consolidate and refinance existing debt for better interest rates and terms.
There are several types of large business loans, each designed to meet specific financial needs and circumstances.
Here are some common types:
A lump sum of money is borrowed and repaid with interest over a fixed period, often used for significant one-time expenses like purchasing equipment or real estate.
Specifically for purchasing, refinancing, or renovating commercial property, these loans typically have longer repayment terms and larger loan amounts.
Designed to help businesses purchase expensive equipment, these loans use the equipment itself as collateral.
Provides access to a pool of funds that a business can draw from as needed. This type of financing is flexible and can cover a range of large expenses.
Allows businesses to borrow against their outstanding invoices. This can be particularly useful for managing cash flow and large operational costs.
A lump sum provided upfront in exchange for a percentage of future credit card sales. Though typically more expensive, they can be a quick way to access significant funds.
Short-term loans designed to provide immediate cash flow while waiting for long-term financing. These can be used for quick purchases or to cover temporary financial gaps.
Used specifically for funding construction projects, these loans often convert to permanent mortgages once the construction is complete.
Each type of loan comes with its own set of terms, interest rates, and qualifications, so it's important for businesses to carefully consider their specific needs and financial situation when choosing a loan.
A large business loan can be used to buy another business by providing the necessary capital to cover the purchase price and associated costs. This process begins with securing financing from a bank, credit union, or alternative lender, which can be structured as a term loan or other suitable option.
After obtaining the loan, thorough due diligence is conducted to determine the value of the target business, including reviewing financial statements and assessing liabilities. Once a purchase agreement is negotiated and signed, the lender disburses the funds used to pay the seller.
The loan can also cover additional costs such as legal fees, transaction expenses, and working capital for a smooth transition. Repayment of the loan begins after the acquisition, with regular monthly payments and interest over a specified period.
This approach allows you to expand your operations and market share without depleting existing cash reserves, provided you have a solid business plan and financial projections to demonstrate the acquisition's profitability to lenders.
Using a large business loan has several advantages and disadvantages. Here's a breakdown:
Using a large business loan can be a powerful tool for growth and investment, but it also comes with significant responsibilities and risks. Careful planning and financial management are essential to leverage the benefits while mitigating the drawbacks.
Yes, it is possible to obtain a million-pound business loan, but it typically requires meeting stringent criteria set by lenders. Lenders will require detailed financial statements, including profit and loss statements, balance sheets, and cash flow projections, to assess your business's ability to repay the loan.
Lenders are more likely to approve large loans for established businesses with a proven track record of financial stability and revenue generation. Clearly defining the purpose of the loan, whether for expansion, acquisition, or major capital investments, can help in securing approval, as it demonstrates the loan’s potential to drive business growth. Traditional banks, online lenders, and alternative financing options offer large business loans, but each may have different requirements and terms
Here are some key factors involved:
Securing a million-pound loan involves a thorough application process and a strong financial foundation, but with the right preparation and documentation, it is achievable.
Large business loans go through bespoke pricing and heavy due diligence, so by default, they are not the quickest loans to secure due to the associated complexities. The quickest transactions would be favourable sectors such as Healthcare (dentists, doctors, pharmacies, vets), and other sectors that may be subject to an expedited application process or less stringent criteria are logistics, recruitment, and manufacturing.
Secured finance is often the most common choice because it has the lowest interest rates. Bridging loans, invoice factoring and asset finance are some of the popular secured financial solutions for their flexibility and quick turnaround.
There are some cases where a business loan can affect your personal credit. If you personally guarantee the loan, your credit is linked to the business's financial obligations. If the business fails to make payments, you could be held personally responsible, impacting your credit score.
Lenders often check personal credit when you apply for a business loan, especially if your business is new or has limited credit history, which can influence their decision. Although established businesses typically have their loans reported to business credit bureaus, a personal guarantee or poor business credit could still affect your personal credit.
Additionally, if the business defaults on the loan or makes late payments, and you have provided a personal guarantee, this can negatively impact your personal credit score. To avoid these risks, it's important to understand the loan terms, manage both personal and business finances carefully, and maintain a strong credit profile.
Lenders consider several factors when determining the best type of loan to offer a business:
How much your business can borrow will also depend on its nature and industry. If you can demonstrate trading revenue over at least one year or more, this will be in your favour. Many lenders will also look at the director's personal credit situation before considering a large loan. The collateral the business can offer against the finance will make it easier for a lending decision if the asset can provide the necessary security.
Through our partners, we have connections with over 42 lenders.
Related: What is Invoice Finance and Can it Help My Business?
Through our market knowledge, we can deliver bespoke terms based on your requirements.
To see what we can do for you, call us on 0203 880 8890 or book a free consultation with one of our expert advisors below.
Lenders consider several factors when determining the best type of loan to offer a business:
How much your business can borrow will also depend on the nature of your business and the industry the business is involved in. If you can demonstrate trading revenue over at least 1 year or more this will be in your favour. Many lenders will also look at the director's personal credit situation before considering a large loan. The collateral the business can offer against the finance will make it easier for a lending decision if the asset can provide the necessary security.
Through our partners, we have connections with over 42 lenders.
Related: What is invoice finance and can it help my business?
Or you can book a free consultation with one of our expert advisors at a time convenient for you below.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
