We are pleased to have recently announced our new Interest Only loan option, a short term facility aimed to get money into your business and working faster.
What is the Interest Only option?
Interest Only is a simple, short term business loan that allows you to make interest only repayments over a fixed period of time and then repay the lump sum you originally borrowed along with the final interest payment.
This loan product is ideally suited to support cash flow over the short term in scenarios where you are expecting a large cash payment within 3 months, but want to release that cash into your business now.
benefits of an interest-only business loan
- To be able to try and win new contracts which may require capital months before the payment on the contract
- Allows you to reinvest money now rather than in 3 months’ time.
- Only make interest repayments until you receive funds in full, assuming those funds are received in a 3 month period.
How does it work?
- Pick up the phone and call White Oak UK to apply for an Interest Only Loan
- Provide supporting financial information
- Receive a decision within 4 hours of providing this
- Sign your electronic documents
- We pay out your loan on the agreed date
What can it be used for?
A few examples of what you can use an Interest Only loan for are (but not limited to):
- If you have been approved for the R&D Tax Credit, but have to wait a number of weeks for this to be paid to you. We could release this vital cash into the business now. This would give you the option to use the money to grow & generate further income now rather than in 3 months’ time.
- Cover the cost of the VAT on a Commercial Property Purchase. You can pay the VAT using an interest only loan, rather than going through the lengthy process of setting up a temporary overdraft with the mortgage provider.
- As a Professional, you could be waiting for payment for your services, or require funds to manage the on-going costs of a case, you could use such a loan to help facilitate these scenarios.
- When commissioning the build of a large asset or piece of equipment, you will often have to pay a large amount of this money in advance of receiving the asset into the business. Staged payment arrangements can be complicated and require you to begin capital + interest repayments up to 3 months before that asset can begin making money for you. By using an interest only loan, you could make 3 payments of just the interest element of the loan before rolling the balance into a Hire Purchase agreement.