Guarantor Loans Are Ideal For Start-Up Funding

There are many different elements involved with starting-up a business but no matter your idea or the industry you intend to operate in, you need to have funding. This is often the most difficult component of starting up a new business and the options that used to be available for start-up businesses are no longer as reliable as they used to be.

Sadly, due to the number of start-up businesses that fail, and the general state of the economy, it is difficult to obtain traditional funding for a new business or firm that is starting up. This is why there is a need to look for alternative sources of funding. Depending on your location or industry, there may be grants and alternative sources of funding available to you, but the competition for this support is growing all time. You can see why so many people fear that they are unable to obtain the financial backing they need to get their business up and running, and sustain them until they are able to be a success in their own rights.

Check out the APR of a guarantor loan

There is another option that is suitable for start-up businesses though, guarantor loans. There has been a lot of bad publicity regarding the new wave of loans that are available but it is important to be aware that guarantor loans are not similar to payday loans. In fact, they are extremely different. First of all, compare the average APRs of payday loans and guarantor loans. A start-up business couldn’t afford the payments associated with the APR of payday loans but with average APR of guarantor loans coming in at around 40%, you suddenly have a viable option.

The guarantor provides the lender with added confidence

The different element in the guarantor loan that lowers the APR is the fact that someone is willing to act as a guarantor. This provides the lending company with more security and confidence that their loan will be paid back. If you can find someone who meets the criteria and is willing to act as a guarantor, you will find that you can obtain an affordable and suitable loan for your start-up company.

Guarantor loans range in value from £500 to £12,000 and they are not linked to your credit rating. With larger guarantor loans able to be paid back over a seven year period, you will find that you can cope with the payments in your regular cash flow. Like all loans, it is important that you are in a position to pay back the loan but the affordable and attractive nature of a guarantor loan should fit with the scope and ambitions of a start-up company as opposed to strangling it with excessive payment demands.

If you have everything in place for a start-up business apart from funding, check out guarantor loans because they may provide you with the missing link for your business idea. To start-up with confidence, apply here and take the first step in building a business.