What is a business finance loan?

Business loans can provide businesses with the necessary capital to expand, improve operations, purchase inventory or invest in new equipment. At Mercantile Trust, business loans should be withdrawn to secure funding for business purposes only. Our business loans allows you to release equity from your main residential property to fund new or existing business ventures.

What is there to know about business finance loans?

The two main ways in which you could secure business finance are through either a secured business loan or an unsecured business loan. Secured business loans require collateral, such as property or equipment, which the lender can seize in the event the borrower defaults on the loan. Secured business loans typically have lower interest rates and longer repayment periods than unsecured loans. This is because unsecured business loans do not require collateral and carry more of a risk for a mortgage lender. This is why unsecured loans typically have higher interest rates and shorter repayment periods than secured loans.

Lines of credit are another form of business loan that provides businesses with access to a set amount of capital that can be used as needed. Businesses only pay interest on the amount of money they draw from the line of credit and repayment terms are flexible. Term loans are fixed loans that are repaid over a set period of time, typically with a fixed interest rate.

When applying for a business loan, we will typically require information about the borrower's credit history, financial statements, and business plan. Borrowers will also need to demonstrate their ability to repay the loan, typically through cash flow projections and a detailed repayment plan. The lender will also consider the borrower's industry, market conditions, and other factors that could affect the borrower's ability to repay the loan. It is important for the borrower to know how they plan to repay their business loan, as this could make them more eligible to withdraw one.

What are the benefits of business finance loans?

One of the key benefits of a business loan is that it can provide businesses with the necessary capital to grow and expand. For example, a business might use a loan to purchase new equipment that can improve efficiency and productivity, or to invest in marketing and advertising campaigns that can help attract new customers. Loans can also help businesses weather unexpected financial challenges, such as a sudden drop in sales or unexpected expenses.

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Simply fill out the form above, or call us to discuss your needs now.

Our team of experts are there for you.

You'll deal with the same experienced advisor throughout your enquiry.

We can get you the funds you need, fast.

You could get a lending decision in just one call.

Our flexible approach


We are proud to be a lender who can deliver loans at a fast approach, to consumers. We make this possible by carrying out our own legal checks, in house for loans under 100k, within hours. We can offer automated valuations, which are available to produce financial solutions in an instant.

Mercantile Trust regularly help their customers carry out renovations with heavy refurbishment loans, by providing finance fast.

No minimum income

At Mercantile Trust, we put our customers at the forefront of what we do.

We offer top slicing, where we can use your personal income when carrying out affordability calculations. If your rental income does not cover your mortgage repayments, we will top up the remaining amount that you cannot cover so you are able to get the loan you require.

No Exit Fees

We want you to be in control of your finance.
With no early repayment or exit fees, Mercantile Trust will strive to find a loan to meet your financial requirements.

What are the drawbacks to business finance loans?

It is important to keep in mind that taking on debt can also have downsides. Borrowers must be able to make regular loan payments, which can strain cash flow and affect the business's ability to invest in other areas. Additionally, if the borrower defaults on the loan, they risk losing collateral or damaging their credit score.

Can I take out a business finance loan with a poor credit score?

At Mercantile Trust, we take a holistic approach when assessing our borrower’s application. Therefore, even if you have a credit score that is not considered ‘perfect’, we could still get you the loan you need.

We understand that the past couple of years have been difficult and many individuals have had trouble with paying their debts. Mercantile Trust are specialists in lending to those with poor credit and complex income streams so, even if you’ve had issues such as defaults, CCJs or missed payments we will do our best to help.

Our bridging loan criteria

We aim to help absolutely everyone, however there are certain criteria that must be met in order to make a successful application:

  • Unregulated bridging applications only
  • Rates from 0.99%
  • Up to 75% loan to value
  • Most property constructions accepted
  • No personal income requirement
  • No exit fees
  • Minimum property value £75k
  • Minimum advance £25k max £500k
  • Confirmation of exit required
  • Minimum of one buy to let or residential property required
  • Serviced and rolled interest available
  • No ERC (Early Repayment Charge)
  • First and second charge available