If you operate a new start-up or even if you are an established SME owner, you may need funding assistance for purchases. Items like fleet assets, robotic machinery, and automated industrial equipment all cost large sums of money. Not every business has that kind of flash cash to buy new equipment outright. Fortunately there are plenty of UK banks willing to offer great deals on borrowing for business.
This article explores your options ono banking finance for your company in 2023/4.
The Best Banks for Business in 2023/4
Trying to secure financing for your SME? These UK lending providers and financial institutions might be exactly the answer you have been looking for.
Barclay’s Bank – Most Established
According to Wergs Consultancy, Barclays is one of the oldest banks in Britain. Established in 1690, this banking business once served the Kingdom of England. Now it serves the entire UK and the world beyond. As such a long established bank the team at Barclay’s have had longer than most to perfect their loan deals. At the moment, Barclays remain one of the best banks in the UK for business owners.
Starling Bank & HSBC – Securest
The Fintech Times reports that according to Which? surveys, cyber security is one of the best building blocks for success that the modern bank has in its arsenal. The two British banks named most secure for business banking were Starling Bank and HSBC. If you want perfected banking loans from suppliers who value and prioritise client safety, then you want to choose from either Starling Bank of HSBC.
Cybersecurity is a huge part of the modern business. It has never been so important to any other business as it is to your bank. Trusting financial institutions with your money is easier when you know that the institution in question is safer for your clients than others. Besides anything else, data breaches cost the worldwide economy $4.45 million USD in the 2022-2023 period. Don’t let your business become a statistic.
NatWest – Best Small Business Loans
NerdWallet UK found that the best business loans in November of 2023 included those offered by banking provider Nat West. With 12.35% representative APR they offer clients loans from £1,000 – £50,000. Repayments can take as long as a decade upon request, and their service is reviewed at 4.5/5 stars for excellence. NatWest themselves are an established UK brand with huge client success. If you need fast money up to 50k to buy new equipment for your business, they are the ones to help.
Of course, you should always confer with a consultant to make sure any business loans you enter into are the best for your SME. When it comes to financing, it is better not to take any chances.
TSB – Best Long-Term Loans
On the other hand, if you require to borrow more for longer, TSB have good base rates. The basic loan for businesses offered by TSB will lend your company up to £1 million. You can repay this loan over a quarter of a century. However, remember that you must borrow over £25,001 before you can take out this loan. Although the repayment rate is not as good as NatWest, this type of loan lets you borrow more money for bigger investments.
Metro Bank – Best Massive Loans
If you want to borrow over the £25 million mark, then Metro Bank will offer you competitive rates. The loans start from £25k and can be repaid over anything from 1 to 30 years. If you are a long standing, successful corporation, this is exactly the type of funding source you might require for setting up a new branch abroad. If your assets require serious money, opt for Metro Bank this year.
There is Always Asset Financing….
And if all your applications to banks for business finance fail, there are other options for finding finance for big equipment. Asset financing explores a range of methods wherein you use your current assets as collateral against borrowing for new machinery. Expensive equipment can be bought through hire purchasing, or through lease-to-loan financing. You can even secure funding by approaching your suppliers and asking for products in advance through invoice funding to save the cash you need to improve your equipment.
Wrapping Up Bank Lonas for Business
Look out for good rates of interest. The lower they are, the better. Keep a sharp eye out for clauses within deals, such as you paying extra after a set period of time. The best way to handle financing is to seek the advice of a qualified financial advisor. Even a brilliant business consultant can help you here.