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How to get a loan for your business

Georgiana Campbell
April 12, 2022
min read
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Applying for a business loan is easier (and faster) than you think. We look at what you need to get started and what you can use your loan for.

Applying for a business loan is easier (and faster) than you think. We look at what you need to get started and what you can use your loan for.

How to get a loan for your business

We know business owners have better things to do than fill out mountains of time consuming paperwork. As far as we’re concerned, the less time you have to spend on overcomplicated and unnecessary tasks, the better. That’s why our loan application process is as simple, efficient and transparent as possible. So you can focus on what matters: running your business.

With a Kriya loan you can get up to £500,000 to boost your business’ financial firepower, fund your next stage of growth or simply keep the wheels turning. Things can change quickly – whether it’s unexpected costs or a planned rebrand, we’re committed to ensuring you get the funds you need, fast.

If it’s your first loan, or just your first loan with Kriya, keep reading to find out if we can offer the right loan for you. If you’re looking for the answers to any of the following questions then read on:

What is a business loan?

A business loan is effectively a quick cash injection. Once you're approved, you'll get the full sum in one go, and make monthly repayments over a fixed period of time on the full amount (the ‘principal’) plus interest.

At Kriya we offer two kinds of loans: a government-backed Recovery Loan Scheme (RLS) loan or a MarketFinance business loan. Apply for a loan and we’ll come back with the best option for your business.

So what could you get? Here’s are the highlights:

  • Up to £350,000 with an RLS loan or up to £500,000 with a business loan
  • 4, 5 or 6 year terms with RLS or 1-5 for a business loan
  • For both types of loan we offer six months of interest-only payments, so you’ll only start repaying the principal after this period is up
  • We’ll never charge if you settle your loan early or part settle
  • Arrangement fees are capped at 5% for RLS loans and 8% for business loans
  • Rates between 5.49% and 8.49% for business loans and up to 10.59% for RLS loans

What can I use a loan for?

There are a myriad of ways to use a loan, but here are a few of the most common among our customers:

  • Inventory – If you hold stock, as your business grows, so will your inventory needs. To respond to that uptick in demand, you’ll need access to cash to fulfil the increase in orders. A loan can help you cover these costs without draining your cash flow
  • Marketing – If your business has evolved you might be thinking about a rebrand, or simply spending more on your digital marketing budget to get your name out there. Updates could include web development, merchandise or external advertising, and having the funds to settle these project fees could help you build your brand faster. With a loan, you can make sure this work gets underway sooner
  • Equipment – whether you’re modernising or purchasing new systems or machinery, a business loan ensures you can upgrade without compromising your regular outgoings
  • Building a great team – tapping into and nurturing the best talent helps you drive your business further. With the hiring market tougher than ever and training prices going up, a loan can help cover the changes you need to make as your team expands and develops
  • Expanding – as your output grows, your space will need to match it. Perhaps it’s time for a new office, or a larger warehouse? With a business loan you can meet that upfront need to make sure business doesn’t have to slow

Whatever your funding needs are, our friendly team is on hand to help. Head to our website to find out more and get in touch today.

Am I eligible for a loan?

You know what you can use a loan for, but now you might be wondering if you fit the criteria – in other words, can you get a loan? Here’s the eligibility checklist for any business making a MarketFinance business loan application:

  • UK-registered limited company or LLP
  • Turnover of at least £50,000 (£200,000 for the Recovery Loan Scheme)
  • Trading for 3 years or more (2 sets of filed accounts required)
  • Currently trading and profit-making
  • Director is a homeowner

How do I apply for a loan?

Time to get moving! Before you start, it’s important to make sure you have all the relevant information to hand. Beyond your personal details and contact information, this includes:

  • Your company name and registration number
  • Applying director’s date of birth and residential address
  • Last six months’ bank statements (dated to within 2 weeks)
  • Latest statutory accounts

How quickly can I get a loan?

So, you’ve finished your application in just a few minutes. How long are you going to be waiting by the phone? Once you’ve sent everything off via our website, you’ll receive a decision within 24 hours, usually on the same day if you apply in the morning. Not bad, right?

Even better: once approved, you’ll have funding in under an hour of signing, with the fastest time to receiving funds less than 20 minutes! We’ve got you covered every step of the way, and our friendly customer service team is on hand to answer any qualms or queries. Don’t want to just take our word for it? Head to our Trustpilot to see what our customers have to say about the efficient service they get.

We’ve made the application process as fast, hassle-free and easy as possible. There’s no months-long delay just to hear back, so you can plan faster, smarter and better. Get started today by clicking here – you could be funded before you know it.

Do I need a personal guarantee?

Whether you need a personal guarantee or not depends on the type of loan you’re approved for. RLS loans are backed by the government. That means there’s no personal guarantee required from a business owner up to £250,000, but beyond this point you’ll need to provide one. Our MarketFinance business loans are unsecured and subject to a personal guarantee on any amount.

As a refresher, a Personal Guarantee (or "PG") is a promise made by an individual that they will pay back the loan if their company is unable to keep up the repayments. Essentially, it's a means of reassurance for the lender that a business owner will assume personal responsibility for the loan. This allows the lender to extend more credit to more businesses.

It’s important to understand the implications of a personal guarantee, so make sure you read up before making the commitment.

Need more information on anything mentioned? Head to our loans page for more.

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Your Kriya story starts here

Please fill out the form and a member of our team will be in touch

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