In order to establish an enterprise of his own, the borrower approaches the bank or other pecuniary organization for money. The fiscal aid granted for such a need falls under the category of startup business loans.
The businessman who approaches the lender for monetary assistance must have a good standing in the pecuniary market. The business to be carried out by him must be one that is legal as per the law. He is granted an amount which ranges from 5000 - 500,000. He is granted a long repayment period. The lender offers a long term to repay the credit as business is faced with upswings and down swings. The maximum period of repayment is 25 years.
Start up business loans are approved for a long term period. They are accessible as both secured and unsecured advances. If the industrialist opts for a secured advance he is required to place considerable security against the finance secured. The interest rate charged is low as there is some collateral placed. If the borrower fails to repay the credit, the lender sells the security and recovers the money. The fiscal aid granted to him is greater as compared to other advances.
The borrower has to fulfill the following eligibility criteria for approval of this credit:
The borrower should be a citizen of U.K
The borrower should be above 18 years of age.
The borrower should be employed with a reputed company.
The borrower should have regular income.
The borrower must have an active bank account.
Unsecured financial advances are arranged without insertion any guarantee against the credit. These advances are settled on good faith. Thus, it has a comparatively higher rate of interest. The lender is at a risk as he grants the finance without any certification.
The application procedure is very simple and quick. You need to fill an application form giving all the necessary details. You must make sure that the information you submit is genuine. A single form is to be filled.