Whether you are starting a business, expanding it or investing in it to stay competitive, you may need to borrow money. You may want external finance to cover day-to-day expenses when developing your new product, service or marketing strategy until your business generates enough surplus cash to meet these costs. Alternatively, you may want to borrow money to cover the cost of new equipment or premises.
Business Link has developed a guide which looks at the advantages and disadvantages of loans and overdrafts - two popular sources of finance - and the purposes for which they are best suited. It provides practical help when choosing a loan or overdraft, taking you through the options available from high street banks and building societies as well as companies offering unsecured loans.
It also gives guidance on how to raise your chances of success when approaching a lender, for example by using a finance broker, and lists the main sources of borrowing including specialist loan providers.