Business loans
A business loan gives you a lump sum to repay over a set term. Secured loans, backed by property or equipment, have lower rates, longer terms and higher limits. Unsecured loans are quicker to arrange but cost more and run for shorter terms.
Lenders look at your business's finances and outlook, and often your personal credit history too.
Business credit cards
A business credit card suits smaller, short-term spending, such as stock, travel and subscriptions, and can separate business spending from personal. Rates are high, often around 20% a year, so they're best when you can clear the balance quickly.
Cards can come with extra cards for staff, spending reports and rewards points.
Would a line of credit be better?
A line of credit or overdraft lets you draw money as you need it and pay interest only on what you use, usually at a lower rate than a credit card. It suits uneven cash flow.
Which is right for you?
- A large, one-off cost you'll repay over years: a business loan.
- Day-to-day spending you can repay within a month or two: a business credit card.
- Uneven cash flow: a line of credit or overdraft.