When looking for funding to start or grow your business, it is important to explore all options to ensure you choose the one most suited to the needs of your business.

To help you understand more about our loans, we’ve outlined the 7 top questions most frequently asked by potential borrowers when looking to find out more about receiving funding through Business Loans Scotland.

1. How much can I borrow?

We offer loans from £25,000 to £100,000 for new and growing small and medium sized businesses based in Scotland. We are a match funder and therefore will normally provide up to 50% of the total funding required with the business sourcing the other 50% from the private sector via bank funding, Directors/Owners input, equity investment etc.

2. Am I eligible? 

The following types of legally formed, trading SMEs are eligible to apply:

• Sole Traders
• Partnerships
• Partnerships with 4 or more partners
• Limited Companies
• Limited Liability Partnerships

There are however, some sectors that we are unable to support and therefore would encourage all potential applicants to check our website for further details.

3. What is the interest rate?

When applying for funding of any sort, we understand that potential borrowers like peace of mind knowing exactly what to expect when it comes to repayments. That’s why our interest rate is fixed at 6% for the term of the loan and we also ensure that there are no hidden or additional fees along the way such as no charges for set up or early repayment.

4. What is the repayment period?

Loans can be repaid over a period of between 1 and 5 years. To ensure payments are affordable and realistic for the business, our Loan Officers will work with you to agree the most suitable repayment period during the initial assessment.

5. What can I use the loan for?

Our loans can be used in a number of ways to support the start up or growth of your business including:

• Funding to get your business started
• Working capital
• To purchase new or used machinery or equipment
• To purchase, expand or renovate business premises
• Fund innovation and expansion projects
• Expand into new markets

6. How long will it take to receive the loan?

After submitting your completed application with all supporting documentation, we aim to have a decision to you within 2 working weeks. After this, the loan agreement and any security documentation must be completed prior to the loan being released.

Some applications may take longer to process depending on the complexity of the proposal or the security required, however, our team will make sure to keep you updated throughout by giving regular updates on the status of the application.

7. How do I apply? 

Applying for one of our loans is simple. Once you have all the relevant information and documents prepared you can then proceed by submitting an application through our website. After submission, one of our Loan Officers will be in touch to discuss your enquiry and provide further information on the next steps.