Business loans FAQs

A business loan provides your business with a lump sum of capital that can be used for a range of purposes — expanding operations, managing cash flow, or investing in new equipment. Guavas arranges tailored business loan options to match your specific needs. Read more about the different types of business loans.

A business loan provides a lump sum of capital that you repay over time with interest. Terms, interest rates, and repayment schedules vary between funders and loan types — comparing your options is the best way to find the right fit. See our guide on how small business loans work.

Yes, it can be possible. Guavas arranges options from funders on our panel who will consider businesses with a poor credit history, and they look at the full picture rather than a score alone. It is not guaranteed: the funder decides, and a weaker history can mean a smaller loan, shorter term or higher cost. Our quote form carries no obligation. Read our guide to bad credit business loans.

The funder sets the interest rate and any fees, for example arrangement or early repayment charges. Guavas does not charge you a fee; the funder pays us commission, explained in our commission disclosure.

Guavas works with UK registered companies (Ltd, PLC and LLP). We cannot help sole traders or ordinary partnerships.

You'll need to gather supporting documents such as financial statements, bank statements, tax returns, and identification. Having these ready and up to date keeps your application moving quickly. A clear business plan strengthens an application, and we will tell you what the funder is likely to want to see.

The funder carries out a thorough evaluation of your application, including your credit history, financial documents, and proposal, along with any further checks such as verifying collateral. If approved, the funder issues a loan offer setting out the amount, interest rate, repayment terms, and any fees. Review the terms carefully, and ask questions, before accepting. Once you accept the offer, the funder transfers the funds to your business bank account.

Business loans offer several benefits, including access to capital for growth, improved cash-flow management, and the ability to invest in new opportunities. Guavas Finance compares options across our panel of 50+ UK funders to help you find the loan that best supports your business goals.

There are several types of business loans, including secured and unsecured loans, start-up loans and commercial property loans. Each type has its benefits and drawbacks. Learn more about the different business financing options.

A secured business loan requires collateral, such as property or equipment, which reduces the funder’s risk and often results in lower interest rates. This type of loan is ideal for businesses with valuable assets. Discover the differences between secured and unsecured business loans.

An unsecured business loan does not require collateral, making it a higher risk for funders and usually resulting in higher interest rates. It’s suitable for businesses without significant assets but with a strong credit profile. Find out if an unsecured business loan is right for you.

Choosing the right business loan depends on your financial needs, credit profile, and the purpose of the loan. Guavas Finance helps you compare options and find the best fit. For more guidance, explore how to secure funding for your business.

Business credit cards offer a flexible financing option for day-to-day expenses and short-term funding needs. They often come with rewards and benefits tailored to business use. Discover the advantages of business credit cards.

Startups can look at start-up loans, which Guavas can arrange from funders on our panel. Read more about how to fund your new business.

Refinancing involves replacing an existing loan with a new one, often with better terms or lower interest rates. This can help reduce monthly payments and improve cash flow. Explore the pros and cons of refinancing your business loans.

Applying for a business loan typically involves submitting financial statements, business plans, and credit reports. Guavas Finance guides you through the application process to ensure a smooth and efficient experience. For detailed steps, visit our guide on small business loans.

Consider factors such as interest rates, repayment terms, fees, and the funder’s reputation. It’s crucial to assess your business’s financial health and ability to repay the loan. Guavas Finance provides expert advice to help you make an informed decision. Learn more about the pros and cons of business loans.

Improve your chances by maintaining a good credit score, preparing a solid business plan, and demonstrating steady cash flow. Guavas Finance assists in preparing your application to enhance your eligibility. Explore alternative funding sources.

Guavas Finance supports you end-to-end, from identifying the right loan options to guiding you through the application process. Our expertise helps you find financing solutions that fit your business needs. Learn more on our business loans page.

Repayment terms vary by funder and loan type, typically involving regular monthly payments of principal and interest. Guavas Finance helps you understand and manage your repayment obligations effectively.