Business loans for growth usually involve borrowing larger sums of money to help with the costs of growing or developing a business.
The rate of interest payable is determined by current market rates and the business’ creditworthiness. Where the lender perceives higher risk of default, likely that the interest rate will also be high to reflect this.
There are many sources of business growth loans including banks, local authorities, regional investment initiatives, venture capital and fintech. It is important when considering which lender to go with, to ensure that the loans are affordable (ie: can you make the loan repayments over the term) and that the lender is aligned with your repayment plans (ie: if you plan to be able to repay the loan early, can you do this without penalty and will you have to pay the whole loan interest regardless).
