Frequently Asked Questions

Generally, the better your credit rating and history, the more likely you will be accepted for a personal loan. Loan companies specialise in lending to people with bad credit ratings, so all is not lost if your credit history is less than perfect.

This depends on the lender and the information they have on you. Some lenders may ask you for additional information or need to speak to you, this may slow down the process. Usually online lenders are the fastest option. Payments are normally done by bank transfer and on the same day that your application is accepted. However, some loans, for example guarantor loans, can take several days or even weeks to approve. Always check with your lender before applying.

If you qualify for an interest free purchase period on a credit card, this can work out cheaper than a loan. However, if you don’t pay off the full balance before the interest free period ends, the credit card company will start charging interest at their standard rate. This can work to be out more expensive than if you had chosen a loan with a good interest rate.

Most personal loans are unsecured, and don’t require you to provide collateral or an asset to secure the loan. However, always ensure that you read all the terms of your loan carefully before applying, so that you understand the requirements of the loan and the risks involved.

You can take a personal loan out for all sorts of reasons, the most popular being for a large purchase, such as a car or home improvements. Some borrowers take out a loan for debt consolidation (using a new loan to pay off older debts, usually debts that have a higher interest rate, to save money and reduce the overall amount borrowed quicker).
However, before you rush to apply for a loan or spend money loaned to you, make sure to check any terms or conditions attached to your loan. Some lenders will only approve loans for certain reasons and you must not breach the terms of your loan.

Business loans come in all shapes and sizes, small business loans allow you to borrow smaller amounts and then larger loans that allow you to lend over a million pounds. The loan you are offered is depends on several factors, such as the loan provider, the amount you want to borrow and your business’s finances. The lenders view of financial risk within your businesses and sector, as well as other risk factors, will have an impact on the interest rate of your business loan, as well as the amount they may be willing to offer as a loan.

How much you want to borrow can make a difference to the type of loan you are offered - whether unsecured or secured. There are different lending and options, including direct from a bank, a specialist lender, or even a peer-to-peer loan service.

Whether you are accepted will depend on several factors and requirements. Some lenders require your business to have been trading for a minimum number of years; the business may need a minimal level of revenue, strong trading figures and revenue. Other lenders may look for potential assets as security and how you intend to use the funds they provide.

It's very likely your (and other business partners') financial details will also be reviewed, including your credit score, credit history, current debt and more.