Emergency business finance options
In an ideal world, every business owner could plan the year ahead, and everything from cash flow to financial planning would go smoothly without any unforeseen events. The reality of the situation is that customer payments get delayed, machinery breaks, stock gets damaged, which might mean that you will need the support of a short-term business loan to see you through.
Emergency business finance options
Cash flow problems are the bane of small businesses with many stating that their cash reserves would run out after just three months.
A range of emergency options
While you might not be able to plan for an unexpected incident that negatively affects your business, you can familiarise yourself with the emergency business loans on the market from alternative finance to cash flow products like invoice finance and merchant cash advances.
Short term purposes
Lending for short-term purposes can inject a much-needed shot of cash into a business’s working capital. The three main types of working capital loans are:
Long-term funding
For longer-term funding, the most relevant forms of finance are:
Asset finance, which covers finance leasing and hire purchase
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Common concerns
Seasonal trading businesses
There might be times throughout the year when your business has off-season trading, placing a strain on cash flow. In cases where your business needs a leg up, it might be worth talking to a credit broker or a lending platform to see what business loans are available to you, this includes asset-backed finance for businesses that need a boost to working capital and term loans that use accounts receivable, inventory, plant and machinery or real estate as collateral. It is basically any type of business finance that is secured by company assets.
My business is operating at a loss
Growing debt is a serious issue, especially if there is no clear path back out of the red. However, there are specialist lenders who take a holistic look at a business and will work out a tailored plan for getting you out of debt, while also providing you with the necessary funding to keep your business afloat. Most often, in the case of a business with significant debt, a lender will only offer a secured business loan with a personal guarantee and assets as collateral. The interest rates for unsecured business loans tend to be much higher than for secured business loans.
Are you running out of options?
Have you tried everything and still feel like your business situation is hopeless? At this point, you need to make an extremely challenging decision about whether to keep trading or close the business. If you are confident that you can turn the ship around you might want to consider going for a company voluntary arrangement (CVA) to address your outstanding liabilities. If your limited company is insolvent, it can use a CVA to pay creditors over an agreed timeframe. If your creditors agree to the terms and conditions, your company can continue trading.
Emergency situations
In an emergency situation, for example, your biggest customer just went out of business, and payroll is only around the corner. If you need emergency cash for your business there are lenders who will facilitate you.
How much can you afford to borrow?
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
How to get a business loan fast?
Keep your accounts up to date
If your business is a limited company, keeping your filed accounts up to date is really beneficial when it comes to applying for a quick business loan. Up to date accounts show how your business is doing right now, rather than where it was in the past, and give a good overview for lenders looking at your application.
Get your bank statements ready
Almost every lender will want to see the last 3-6 months of bank statements, so it makes sense to get these ready as soon as possible. Ideally you'll have them as PDF files downloaded from your bank — most of the high street banks offer this feature. If you're a sole trader, keeping separate bank accounts for your business and personal expenses makes it that much easier for a lender to sift through your statements.
It pays to be prepared
One of the biggest factors in how long it takes to get finance is you — if you have your banks statements ready, along with any recently filed accounts and other financials like profit and loss, our team can get your application moving within minutes. And when we say quick business loan, we mean quick — we recently helped a customer get approved for a loan in just 11 minutes, and regularly get firms the right loan in less than an hour from initial enquiry to money in the bank.
Understand your options
24 hours
Many business owners don't realise that within 24 hours, despite a complex financial situation, you can get a loan even if you've got bad credit, a CCJ or other signs of trading problems in the past.
Specialised lender
If your business is in an urgent situation, the best thing you can do is to talk to a lending expert, who knows the market and the range of products, as in most cases, you won’t be eligible for an off-the-shelf loan from a high street bank, but there are specialised lenders who in return for higher interest rates will provide emergency loans to struggling companies in the UK.
Application process
They will even help you with the application process and will advise on any loan schemes that are still in operation.
How can I use an emergency business loan?
An emergency business loan can be used when your business has been negatively affected by an unforeseen event.
Agreed repayment timeline
Lenders will provide a loan for the following reasons — if they can be convinced that you will adhere to the agreed repayment timeline.
Marketing
Short-term marketing or advertising costs
Operating expenses
To support operating expenses (staff wages, bills, rent)
Cyclical trading periods
To help seasonal businesses, you could use an emergency business loan to fill gaps caused by cyclical trading periods
Legal obligations
To cover unexpected expenses from legal obligations to insurance payouts
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
