If you have ever approached your bank for an unsecured business loan, you might well have been asked to provide a detailed business plan, the business case for the use of the funds, and extensive cashflow projections in support of your application.
By way of compensation, you might be offered what appears to be the luxury of several years in which to repay any loan that is granted.
Even a relatively modest unsecured loan repaid over several years, however, attracts a noticeable amount of interest.
To avoid any such drain on your financial resources, therefore, you might instead look to 12-month loans as an alternative form of much shorter-term borrowing.
Indeed, the 12-month loans we arrange here at Cubefunder carry the lengthiest repayment terms. You might choose an even shorter repayment schedule of equal monthly instalments – a minimum of three months – so reducing still further the proportion of interest making up your repayments.
The short-term nature of such lending also gives us the confidence to streamline and simplify the application procedures.
In place of the detailed accounts likely to have been demanded by your bank, for instance, we can take a more or less immediate view on the state of your company’s health, complete the necessary credit checks, and assess the current status of your cashflow.
That allows us to give you a practically immediate decision in principle on your initial enquiry about 12-month loans. If you choose to follow this up with a formal application, we consider this in a similar light, on the information you have provided, and if your application is approved, we aim to transfer the requested funds directly to your company bank account within the next 48 hours.
Managing your cashflow
12-month loans or less make cashflow management somewhat easier. There is no long-term commitment or complicated calculations of APR to make. A single cost of credit is known from the very start of your loan and repayments may be budgeted into your everyday spending.
Even so, we recognise that hiccups do occur and that, within the 12-month period, there may be one when the agreed repayment instalment proves difficult to find. Let us know if that delay is likely to occur and we are generally able to extend the repayment schedule by the extra month, without the need to impose any financial penalty for the extension.
Maintaining the relationship
Cubefunder is founded by entrepreneurs just like yourself to help small businesses face the challenges that make a success of your efforts. The money we lend in short-term loans is our own. We have no third party savers or depositors to satisfy. That offers the opportunity for developing and maintaining genuine working relationships with the same people – from the very start of your application, through the management of your loan, through to any further short-term borrowing you might want to consider.
Throughout it all, you may take confidence and assurance from the fact that we are authorised and regulated by the Financial Conduct Authority (FCA).