Spice Bros Brighton Limited is a restaurant based in Brighton that approached Crispcap for funding to set a strong financial foundation. The business not only needed money to catch up on supplier credit, but also to fuel future growth and establish reserves.

Having been trading for 3 years, Spice Bros Brighton struggled to find a traditional lender willing to adjust the underwriting criteria. Spice Bros Brighton turned to Crispcap, who was able to unlock funding with favourable terms.

Here’s how their funding journey played out.

How Did Spice Bros Brighton Start?

Spice Bros Brighton is a family-run restaurant. With many family members working in the industry, they decided to branch out and start their own business. Since its inception, Spice Bros Brighton has believed in sourcing quality ingredients and using traditional cooking methods. Despite the restaurant industry being plagued with cash flow issues, staff shortages, and other setbacks, Spice Bros Brighton was able to build their market share with their unique spice blends and family-centered business model.

What Challenges Did They Face Before Getting a Business Loan?

Prior to funding from Crispcap, Spice Bros Brighton leveraged their supplier relationships to purchase inventory on credit. While this was a good short-term solution, the supplier’s credit terms were high, rigid, and inflexible. With high monthly payments, Spice Bros Brighton was struggling to maximize cash flow.

Spice Bros Brighton also faced difficulty securing funds due to being in business for just three years. Even though their business model was solid and their customer base was growing, traditional lenders were not willing to budge.

How Has a Business Loan Helped Them?

The business loan from Crispcap gave Spice Bros Brighton the ability to catch up on invoices. They were able to pay off credit and outstanding invoices. With these debts cleared, Spice Bros Brighton had the ability to increase their inventory and have the flexibility to redraw on supplier credit if needed. This flexibility not only gives peace of mind but also opens the door for growth.

What’s Next for Spice Bros Brighton?

With old supplier invoices cleared out, Spice Bros Brighton has expansion plans. With a solid financial foundation and funded reserves, they can hire more team members, make larger supply orders, and enlist the help of a marketing team.

Getting Started with Your Business Loan

Does it sound like your business can benefit from flexible business financing? Our team at Crispcap is ready to help your business unlock financing solutions that fit your business needs. Get in touch here.

Care providers have faced a myriad of challenges over the past few years. From rising costs and staffing issues to regulatory pressures, it’s no surprise that there is a shortage of qualified care providers.

One common challenge in the care sector is cash shortages. There can be significant payment delays between the time services are performed and when insurance companies pay out. Not to mention the burden of unexpected repairs and maintenance. This is where unsecured business lending comes into play.

Unsecured business lending is a loan without collateral. Instead of requiring you to secure the loan with a building, equipment, or receivables, unsecured loans rely on your business’s health and creditworthiness, providing flexibility in underwriting. Here are 7 ways unsecured lending can empower care providers to thrive.

1. Facilitating Facility Upgrades and Expansion

Providing a modern, safe, and comfortable facility can keep residents happy and your company compliant. Unsecured business loans can help fund facility upgrades and expansion projects, like room renovations, accessibility improvements, and new wings. Unsecured business loans require personal guarantees, so they do not require a property to be listed as collateral. So, they make a great finance solution for smaller care homes.

Let’s say that you have the space to turn a three-bedroom home into a five-bedroom home. At the same time, your facility needs new accessibility features, like an accessible shower and a ramp at the front entrance. Making these upgrades can double your revenue. Instead of listing the property as collateral or pushing off renovations, you can get business finance to complete the upgrades and grow your business.

2. Recruiting and Retaining Skilled Staff

Unsecured business loans are also great for supporting expenses related to recruiting and retaining skilled staff. Recent data suggests a global healthcare worker shortage of at least ten million by 2030. In addition, the median recruitment cost per care worker across organizations was £800, while the average time taken to train a new care worker was £3,288.13. The bottom line is that onboarding new care workers can be costly. Unsecured lending can help cover recruitment, training, and retention efforts by providing funds to pay for:

• Competitive salaries and bonuses

• Training programs and certifications to continue learning

• Staff wellness and retention initiatives

• Recruiter fees and costs

With funding flexibility, care businesses don’t have to worry about losing their top talent due to cash shortages or going without proper staffing levels. Lower staff turnover and higher retention rates can lead to stronger care quality and better business stability.

3. Managing Operational Costs and Cash Flow

Mismatched operational cost and revenue timing can cause serious shortages. Expenses, like utilities, food, insurance, and medical supplies, are non-negotiable in care businesses. Without the proper flexibility in cash reserves, your business could be left scrambling to pay vendors on time. Unsecured business loans can help manage operational costs and cash flow by:

• Covering seasonal cash flow gaps

• Managing unexpected costs, like a medical emergency or a repair

• Avoiding disruption in services due to delayed revenue

Let’s say that your overhead is £10,000 per month. This includes rent, utilities, insurance, and wages. Now, let’s say that one of your main clients unexpectedly had to switch banks, causing their payment to be delayed by three weeks. What do you do? Do you risk your utilities shutting off or workers quitting? With an unsecured business loan, you don’t have to make tough decisions on which bills to pay.

Unsecured business lending is more flexible compared to traditional secured loans due to faster approval times, fund versatility, and no collateral requirements. This means if you need quick cash flow, an unsecured loan is generally the best avenue.

4. Investing in Technology and Care Management Systems

The digital landscape is constantly evolving. Failure to adopt the latest tools and technology risks your care business being left behind. Not only can using the right technology resources give you a competitive advantage, but it can also infuse efficiency and accuracy into your operations.

For example, using electronic health records, monitoring systems, and scheduling software can move an administrative burden off your team, giving them the opportunity to focus on providing quality care. Unsecured business loans can also fund digital transformation by giving you capital to purchase software licenses and subscriptions, invest in monitoring and safety devices, and leverage digital tools to streamline administrative work.

The average care management software in the UK costs between £10 and £80 per user per month. For a team of ten care providers, you could pay between £100 and £800 per month. Not to mention that an initial setup and implementation fee can further add to the investment. Instead of pushing off adopting the latest technology or draining your bank account, your care business can take out an unsecured business loan.

5. Marketing and Resident Acquisition

Despite an overall shortage in the care industry, your business may operate in a location with high competition. Keeping your care centre full of residents relies on using the right marketing and resident acquisition techniques, which can be costly. An unsecured business loan equips you with funds to launch digital campaigns, run local outreach programs and events, and create brochures and brand promotions.

With no constraints on your marketing and resident acquisition budget, you can attract more residents and increase occupancy rates and revenue. For example, running a Search Engine Optimization (SEO) campaign to get your business to the top of search results can be extremely successful, as 75% of people never scroll past the first page on search engines.

Leveraging an unsecured business loan can also give you the funds to bring on a part-time employee to run your marketing and resident acquisition. This team member can focus on growing your social media platforms, attending local events, and coming up with creative campaigns for current and prospective residents. For example, a marketing specialist might create a fun event for your current residents to foster a sense of community and lower turnover.

6. Ensuring Regulatory Compliance

Like any other medical practice, the care sector is subject to stringent regulatory requirements to ensure resident safety. These requirements often include regular inspections, recurring licensing, and frequent audits. Unsecured loans can help avoid business disruptions by providing capital to:

• Make compliance-related renovations, repairs, and equipment upgrades

• Train staff on the legal requirements and safety procedures to properly do their jobs

• Hire an external consultancy for audits and certifications

Maintaining compliance not only avoids fines but also enhances your reputation and eliminates costly business disruptions. Let’s say an inspector is requiring you to upgrade your bathroom to the Health and Social Care Act 2008. Until changes are made, you are not allowed to take on any more residents. This can cause serious financial repercussions for your business, especially if you don’t have the funds on hand to make the repairs right away. With an unsecured business loan, you can quickly complete the upgrades, minimizing disruptions.

7. Flexibility and Quick Access to Funds

Flexibility in business operations and funding is crucial for survival in today’s competitive landscape. It gives you a competitive advantage to offer quality services, retain top talent, and reach growth goals. Compared to secured loans, unsecured business loans have faster approval, providing quick access to funds for urgent repairs, staffing shortages, and compliance needs. Unsecured loans are also the preferred solution if there are little to no assets as security.

While interest rates may be higher on unsecured loans, the benefits often outweigh the costs. Let’s say your roof is leaking and the inspector requires the business to shut down until it is repaired. It costs £25,000 to repair the roof, and you lose an average of £5,000 per week. If it takes you three weeks to take out a secured business loan, you will have lost £15,000. On the contrary, an unsecured loan can close in a few days, helping you minimize losses despite a higher interest rate.

Conclusion

The key advantage of unsecured business loans is financial flexibility without risking assets. It’s ideal for care businesses that don’t want to tie their assets to a loan or ones that might not have many assets, like small home care businesses. Regardless of business size, unsecured loans can equip you with the funding to:

1. Facilitate facility upgrades and renovations

2. Recruit and retain staff

3. Manage operational costs and cash flow

4. Invest in technology and care management systems

5. Leverage marketing and resident acquisition campaigns

6. Ensure regulatory compliance

7. Infuse flexibility into funding turnaround times

As a care home manager and operator, it’s up to you to find the right financing solutions to bridge cash flow shortages, prepare for emergency situations, and remain flexible in operations.

How Can I Get Unsecured Business Lending?

You can apply for a business loan here. The application process only takes 30 seconds doesn’t require a search on your credit history. See if you’re eligible for loan amounts up to £500,000, and loan terms starting at 12 months.

Emis Logistics is a light haulage business based in Wigan, and they approached Crispcap to get some funding and ease pressure on their cash flow. The business was struggling with long contractor pay terms.

The delay in payment was affecting their entire operation. From staff payments to fleet vehicle repairs.

Crispcap arranged Emis Logistics a £10,000 unsecured business loan over 12 months to assist with essential day-to-day expenses. Since getting funded, they’ve been able to scale their growth more than ever before.

Here is their funding journey.

How Did Emis Logistics Start?

Emis Logistics was founded by Emil Sandu in 2021. After building the foundations for the business as a self-employed contractor, it wasn’t long before it became a multifaceted limited company with clients all over the UK.

Despite rising fuel costs and growing driver wages, Emil built a profitable logistics firm that continues be reliable and economical for his clients. His firm is utilised by businesses across the country and he goes above and beyond to maintain these valuable partnerships.

But even amongst successful SMEs like Emil’s, the logistics industry raises consistent cash flow challenges.

What Challenges Did They Face Before Getting a Business Loan?

Long contractor payment terms are a renowned struggle within the logistics sector. Many contractors have moved to 30 to 90-day payment terms, with some extending payments to 120+ days.

For SMEs like Emis Logistics, this can put a destructive strain on cash flow. It can be difficult to fund deliveries, staff wages, and compliance requirements when your profits are tied up in unpaid invoices.

What’s more, Emil told Crispcap that vehicle repairs and maintenance costs were quickly mounting up. It became a struggle to keep his operation moving without the finance to support it.

How Has a Business Loan Helped Them?

After getting a £10,000 business loan from Crispcap, Emil told us that the pressure on his cash flow was instantly relieved.

It created a financial buffer to keep Emis Logistics moving forward while his clients processed his invoices.

More drivers could be hired, orders could be prepared, and the efficiency of his operation grew tenfold.

Additionally, Emil could pay for preventative measures on his fleet vehicles to ensure their reliability. Short-term repairs were replaced with high-quality maintenance, even though it was more expensive upfront.

Emis Logistics are free to plan their projects more effectively and, in turn, increase their client base.

What’s Next for Emis Logistics?

Emis Logistics have increased their workload with the support of a business loan and they want to scale that growth.

Emil is planning more strategies to widen the reach of the business, whether that means more vehicles, drivers, or depots across the country.

The reassurance of steady cash flow has given him the confidence to plan Emis Logistics’ growth. Running costs are now easier to predict and allowed him to accept more contracts.

How To Get a Business Loan

You can apply for a business loan in 30 seconds here. Your application won’t affect your credit score and Crispcap can fund businesses in as little as 4 hours.

When you need a small business loan, where is the first place you look? A lot of business owners turn to the financial institution they bank with.

While this can seem like a great choice on the surface, it can be incredibly difficult to get approved for small business bank loans UK. They’re often not suitable for modern small-to-mid-size businesses.

Specialist lenders offer greater flexibility, faster funding, and customizable loans, which is why it’s no surprise that they are becoming a popular alternative. In this article, we’ll explore why specialist business loans may be a better fit for your business financing needs.

How Small Business Bank Loans Work (and Where They Fall Short)

Traditional bank loans often fall short at meeting the unique needs of small business owners. For one, banks rely on rigid criteria, such as minimum credit scores, trading histories, and profitability. Missing just one criteria can result in automatic denial.

Similarly, traditional bank loans have a lengthy application process, meaning it can take weeks to see funding. This isn’t ideal if you need fast cash flow. While some businesses can meet their funding needs with traditional bank loans, businesses that are growing, have seasonal cash flow, or one-off challenges struggle to work with this type of lender.

What Is a Specialist Business Lender?

A specialist lender in the UK works outside of the constraints of traditional financial institutions. They are often private companies, giving them the ability to infuse flexibility into underwriting terms, loan options, and more. For example, a specialist business lender might underwrite your loan using real-world trading performance instead of historical financial information.

Specialist business lenders often have a niche focus, making them experts in their field. For example, an asset finance provider is a type of specialist business lender that provides loans to purchase equipment, while a growth finance specialist offers funding to accelerate growth.

At Crispcap, we help SMEs secure the business finance their operation needs. We have strong relationships with a variety of specialist lenders that can support your business’s growth

Greater Flexibility and Tailored Funding

One of the core benefits of using a specialist business lender is tailored funding. The loans are designed around your business, not a template. For example, for small business bank loans UK, the lender might require a minimum down payment percentage, while an asset financing specialist may use the equipment as collateral to secure the loan, resulting in a lower down payment.

Flexibility can come in other forms, such as advantageous repayment structures, loan terms, and security requirements. This is ideal for businesses looking to scale, directors with imperfect credit histories, or businesses with non-standard income, such as seasonal demand or unique offerings.

Faster Decisions and Quicker Access to Business Loans

Sometimes, small businesses can’t afford to wait weeks, or even months, for a small business bank loan UK. Specialist business lenders can expedite funding due to streamlined applications, fewer layers of approval, and decision-making based on current performance, not historical information.

With timeliness a priority, businesses can seize growth opportunities, effectively manage cash flow gaps, and respond to urgent needs with ease. For example, if a customer forgets to make a major deposit, how will you fund payroll? In this situation, you can’t wait weeks for a small business bank loan UK to close, which is why specialist business lenders can be a valuable addition to your lending team.

A More Commercial, Relationship-Led Approach

Small businesses that operate in unique industries often have a difficult time finding traditional lenders to fund their capital requirements. On the contrary, specialist lenders take the time to understand your business model, providing ongoing, personal support as your business evolves.

When a Specialist Lender Makes More Sense Than a Bank

The decision to use a specialist lender or a traditional bank is highly personalised. However, there are a few instances when a specialist lender makes more sense than a bank, including:

· Your business is experiencing fast growth or expansion.

· Your business has undergone changes, like recent restructuring or new contracts.

· You need speed and flexibility in underwriting.

· Your business doesn’t fit traditional lending boxes.

Conclusion

Small business bank loans UK aren’t bad, but they aren’t always the best option for small business funding. Specialist business lenders are a smart, modern funding solution that can meet your lending needs. However, it’s important that you evaluate all of your lending options before making a decision.

Crispcap are finance experts that help you land the business loan amount and monthly repayment plan you’re looking for. We arrange SMEs with unsecured loans up to £500,000. You can submit your business loan application in 30 seconds here.

At Crispcap, we’ve secured many scaffolding business loans and this month has been no different.

Only last week, we arranged Sam at Firth Scaffolding LTD a £10,000 unsecured business loan. He’s using the funds to buy essential material for his upcoming jobs.

Instead of shelling out thousands of pounds a month to rent tubes, fittings, and boards, Sam used commercial finance to purchase the equipment instead. He has reduced his monthly outgoings, plus he’ll keep the kit at the end of the loan term.

Business loans have a variety of benefits for scaffolding companies that want to grow or maintain their operation. Here are 5 primary ways that commercial finance can reduce the stress of running a scaffolding business.

Materials

The right materials are necessary for a scaffolding job, so directors have the option to buy or rent them.

Tubes, fittings, boards, base jacks, and toe boards can cost thousands of pounds. Not to mention PPE equipment for workers like hard hats and high-visibility jackets.

Scaffolding business loans can be an invaluable way of getting capital to purchase essential materials for an upcoming job. You can get the equipment ready without draining your cash flow or causing delays to your operation.

What’s more, equipment finance allows you to own the materials at the end of your monthly payments. This is much more cost-effective than renting and returning them.

Delayed Invoices

On average, a construction company in the UK waits 53 days to get payment after completing a job.

Scaffolders often fall victim to this delay and can be left without funds to support their next project. This can cause interruptions to their workload and hugely stunt their ability to grow as a business.

Business loans can be a stopgap for scaffolding companies to cover unpaid invoices. That means they can quickly fund upcoming jobs without having to wait on payment from a previous customer.

Commercial finance can empower businesses to take more control of their work schedule.

Transport

Vehicles like trucks and vans are essential for transporting tubes, boards, and fittings, but they’re an expensive upfront purchase.

That’s why scaffolding business loans can be a helpful finance option. They can be used to buy vehicles quickly and repay it in manageable monthly instalments.

This can provide companies with transport to accommodate new contracts and a manageable payment plan that works for them.

At Crispcap we’ve helped countless businesses secure finance so they can make essential upfront payments. You can check your eligibility for a business loan in 30 seconds here.

Paying Staff

Despite scaffolding companies having to wait weeks to get payment, their staff expect their wages promptly.

Not paying scaffolding contractors on time can cause a range of issues. This includes legal troubles, a tarnished reputation, and a lack of loyalty from employees. You need to protect your staff with regular wages that arrive on time, even if your cash flow is tight.

Scaffolding business loans allow construction companies to pay their workers even when they’re waiting on an unpaid invoice. As payment applications can be a drawn-out process, business finance can be a helpful buffer to pay workers. In doing so, you’ll maintain your operation and workers’ satisfaction.

TAX and VAT Bills

Small businesses like scaffolding companies are no strangers to unexpected tax bills. Perhaps, the amount is more than they thought, or they haven’t been putting money aside throughout the year.

Paying tax bills in full can be difficult for businesses that need to protect their cash flow. Whether you’ve recently shelled out for new tubes and boarding, or had to repair one of the trucks, a lump sum tax payment can be tough when margins are already tight for the month.

Using a business loan for tax and VAT bills means that they are settled on time and full. Then you repay the loan in monthly instalments for a more affordable payment plan.

That way you’ll stay compliant with HMRC’s terms, and your cash flow isn’t jeopardised.

Are Scaffolding Business Loans for Me?

If you run a scaffolding or construction business, loans can be a helpful way to keep your business growing. They offer an affordable way to make sizeable purchases that your business needs. Whether that’s materials, vehicles, staff or tax bills.

But more importantly, business loans give scaffolders the freedom to make essential purchases without draining their cash flow. They can unlock a wealth of growth opportunities.

You could secure commercial finance for your scaffolding business in as little as 4 hours with Crispcap. Apply for a business loan here or use our loan calculator to check your eligibility.

Business loans can give you the resources needed to support your operation and reach new growth goals. Like Crispcap, most organisations that provide funding to businesses will be on the UK Financial Conduct Authority Register.

The Financial Conduct Authority (FCA) is the main financial regulator of business loans in the UK. They set the standards and requirements that both lenders and business owners must follow, which look to add transparency and ensure proper conduct in the lending process.

In this blog, we’ll cover the FCA’s role in business loans, including how they regulate the business lending landscape and how you can navigate FCA-regulated loans.

What Is the UK Financial Conduct Authority?

The Financial Conduct Authority (FCA) plays an integral role in the UK’s financial system. Their main goals are to:

• Protect consumers by ensuring firms and lenders have fair lending practices.

• Bolster market integrity by promoting transparency and efficiency with careful oversight.

• Encourage competition between lenders to give consumers access to the best rates, products, and services.

The FCA isn’t the only regulator in the UK. In fact, other regulators, like the Bank of England and PRA, can also play a role in business loans. The main difference is that the FCA focuses on conduct, while the PRA and Bank of England manage the financial stability of large banks and investment firms.

Overview of Business Loans in the UK

Now that we’ve discussed the role the FCA plays in business lending, let’s explore business loan options in the UK. There are a few key types of business loans, including:

Term Loans

Loans with a fixed repayment period.

Overdrafts

Loans issued for outstanding customer invoices.

Asset Finance

Loans given to purchase specific pieces of equipment.

These loans can be arranged by banks, alternative lenders, fintech firms, and finance brokers like Crispcap. It’s important to keep in mind that all business loans come with a certain degree of risk. While the FCA is tasked with protecting consumers, it’s ultimately your responsibility to thoroughly vet loan agreements and lenders.

Crispcap is a broker on the financial services register and we help business owners navigate the world of loans. We make the funding process stress-free for large and small businesses so they can focus on growing their operation. You can check if you’re eligible for a business finance here.

How the FCA Regulates Business Lending

The FCA has a direct role in the policing of lenders. Lenders must be authorised to issue credit and meet continuous standards, like collateral minimums and specific underwriting terms. Let’s explore how the FCA regulates business lending.

Authorisation and Supervision of Lenders

The first way the FCA regulates business lending is by authorising lenders. To offer business loans, lenders must go through a rigorous application process and provide key information, like financial forecasts, lender experience, and IT compliance. Once approved, lenders will need to meet ongoing requirements and monitoring, such as by submitting annual collateral information and financial reports.

Required Transparency and Disclosure

The FCA also requires specific operating procedures to maintain compliance, including the clear presentation of interest rates, fees, and terms for consumers and businesses. Similarly, all communication must be transparent. Lenders that intentionally conceal information or try to defraud consumers can have their authorisation revoked.

Issuance of Responsible Lending Standards

Since business loans come with risks, FCA-approved lenders must provide affordability checks. This ensures that the borrower is fully aware of the monthly payment and repayment terms prior to signing. Any reckless or misleading lending can result in fines and lending restrictions.

Enforcers of Power

Finally, the FCA regulates business lending by enforcing its powers. Lenders found in non-compliance with rules and regulations can be subject to fines, sanctions, and restrictions.

Why Work With Businesses on The UK Financial Conduct Authority Register?

The FCA plays an important role in business lending. A few of the top advantages for businesses include:

• Greater transparency and fairness

• Protection from misleading practices

• Improved competition and market offerings

Despite the overwhelming benefits for business owners, there are a few drawbacks to be aware of:

• Stricter checks and eligibility criteria

• Limited access and offerings for high-risk businesses

• Potential for increased costs due to compliance expenses

The FCA takes on a broad role in UK business lending; however, its reach doesn’t extend to all loan products. Unregulated business lending commonly applies to commercial property loans and certain business ventures. While unregulated business lending can add flexibility to the underwriting process, it also comes with a greater degree of risk due to poor transparency and minimal consumer protections.

How Businesses Can Navigate FCA-Regulated Loans

If you’re pursuing business lending, you will likely encounter FCA requirements. Here are three tips to navigate FCA-regulated loans:

1. Check for FCA Authorisation

Before you work with a lender, verify that they are FCA-authorised. This can be done through the UK Financial Conduct Authority Register.

2. Know Your Loan Terms

Each lender will have a different set of loan terms and disclosures. Take the time to familiarise yourself with the specific details of your loan. If you have any questions, your lender should be readily available to help.

3. Leverage Affordability Checks

One of the stipulations of being an FCA-authorised lender is providing affordability checks for consumers. Use these checks to verify that your loan is affordable and fits your business needs. Be sure to give your lender the proper financial information to put together accurate affordability checks.

Conclusion

The FCA plays a significant role in shaping business lending, with regulations that aim to balance financial access with responsible lending. Understanding FCA regulations can help your business take advantage of all the benefits. However, doing your own due diligence is essential to make informed borrowing decisions.

Crispcap is a FCA-authorised service that does the legwork for you in getting a business loan. We can fund businesses with different types of loans in as little as 4 hours. Start your loan application without a credit check today.

When Crispcap spoke to Frank this month, business owner of Jaseda Construction, he said that the company was performing well.

The London-based construction business UK was turning over approximately £100,000 each month and the contracts kept coming in. But with more success comes more overhead expenses, and Frank began to feel the pinch of a tighter cash flow.

He needed more staff to support the projects that were coming his way, but he had thousands of pounds tied in unpaid invoices. If he were to subcontract more workers, he needed funds to cover their wages and get the jobs underway.

Frank sought advice from Crispcap about getting a business loan to support his recruitment roadblock.

Frank’s Construction Business UK: How Did It Start?

Frank had worked as a subcontractor for years. He’d been on large-scale construction projects that spanned many months and worked under a variety of management.

After working with surveyors and project managers, he learned important skills for running successful construction work of all sizes. It didn’t take long before Frank wanted to start his own business venture in the same industry.

His perspective as a subcontractor taught him what employees value most from their bosses. He recognised that clear payment terms with subcontractors were a crucial aspect of running a business. By keeping workers satisfied, construction projects would stay on schedule too.

Before long, Frank founded Jaseda Construction and assembled a team of trusted officers, managers, and executives. They began sourcing their own work using the network of contacts they’d built in their professions.

Only a year later and Jaseda are turning over £100,000 and looking for new ways to manage their increasing workload.

What Challenges Were They Facing Before Getting a Business Loan?

Jaseda needed funding to support new contracts that were coming in. This included materials and equipment for the jobs.

But more than anything, the construction business UK needed a loan to hire more subcontractors such as plasterers, carpenters, and electricians. They form a crucial part of Jaseda’s service.

Getting Paid as a Contractor

Whilst every payment schedule is different with each customer, contractors like Jaseda have to wait up to 60 days to get paid after a project.

An application for payment is the most common payment method for construction companies in the UK. It involves them requesting stage payments from the client for completed aspects of the work. This is supposed to financially support businesses over long projects and ensure they meet deadlines.

However, the client can dispute and reject applications when they inspect the work that’s been completed. What’s more, disruptions from the weather, supply chain, or planning permission can cause delays to the job. This can cause contractors to not receive their payments on time.

These factors can create an unpredictable cash flow for construction companies and stunt their potential to grow.

Hiring Subcontractors

In unpredictable circumstances like these, hiring subcontractors can be a big challenge for construction companies.

Subcontractors get paid by either submitting invoices (usually 30-net) or an application for payment. But whatever the structure is, it’s very difficult for construction businesses to agree on payment terms when their own cash flow is uncertain.

Without a steady cash flow, they risk late payments to subcontractors and delaying the project entirely. This prevents many business owners from hiring more staff and growing their operation.

How Has a Business Loan Helped the Company?

Frank got in touch with Crispcap to check his eligibility for an unsecured business loan using our 30-second form. We approved him for a loan amount of £3,700 within 24 hours of his application.

Since then, Frank has used the finance to support his hiring process. He has hired more subcontractors for a range of projects to keep the business moving forward.

When it comes to paying the wages of these workers, Frank rests easy knowing that he has funding in place to pay them on time and in full. No matter if his invoices are paid, the business loan helps pay his team and keep things running.

Frank also set some of the unsecured loan aside to cover expenses for materials and equipment for upcoming projects.

What Is Jaseda’s Plans for the Future?

Frank is thrilled with how a business loan has helped his operation grow, and he intends to get more funding to push it further.

Now that he’s been approved and made regular repayments, it’s likely that he’ll be eligible for longer loan terms and higher amounts soon.

He plans to hire more subcontractors to work on his residential and commercial projects across the UK.

He’s also looking into different ways that he can market the construction business UK. This includes putting considerable spend into social media and pay-per-click adverts. This should generate fresh leads instead of solely relying on work through word of mouth.

As a small business owner, he feels supported knowing he has the staff and funding to book in more projects than ever before.

Getting a Loan for a Construction Business UK

You can apply for a business loan in 30 seconds with our free eligibility checker. Once you’ve submitted your basic business information, we’ll be in touch to discuss the finance options available to you.

You also also use our business loan calculator to get an idea of repayment terms and amounts.

Business loans are an invaluable way of unlocking a business’s growth. They can cover costs for expansion, recruitment, marketing, materials, and much more.

But the key difference between secured and unsecured business loans UK is collateral. Secured finance requires business owners to use an asset as security for lenders if they default on payments.

If this incident occurs, then lenders have the right to sell the asset(s) and use the money to recoup their money, interest, and valuation fees. These assets are usually high-value such as property, vehicles, and machinery.

Unsecured business loans use personal guarantees as security for lenders, which means the business owner(s) are personally responsible to pay the loan back if payments default.

Every business operation works differently, so the finance option you choose should be consistent with your plans for growth. It should also be coherent with what is achievable for your business right now.

Here is some help to decide what type of business loan is right for you.

Unsecured Business Loans

As unsecured business loans don’t require an asset as security, there are key facts about their accessibility and cost that you should know.

Benefits

Fast Speed

Unsecured finance does not require a valuation of property (or other assets) therefore the paperwork is sped up tenfold.

Most of the time, business owners must only send their last 6 months of business bank statements and last set of full filed accounts to their finance broker or lender.

If they’re approved for commercial finance, the funds can be transferred to directors within 24 hours of their application.

Easy

With no property involved, the funding process is streamlined to a simple email exchange of business documents. You can send PDF bank statements and filed accounts to your finance broker or lender in seconds.

After that, directors can focus their attention back on other areas of their business operation. With no assets to consider, the funding process can be less stressful and time-consuming.

Not Risking Assets

Whilst being a homeowner will increase your chances of approval for an unsecured business loan, it’s not essential.

This means that directors don’t have to risk their property (or other valuable assets) to access commercial funding and grow their operation. It also opens the door to people with successful businesses, but no owned property, to apply as well.

Instead of using security, lenders will look at the health of your business, turnover, and credit rating to determine how risky you are to lend to.

Drawbacks

Whilst unsecured business loans UK are faster and easier to arrange, there can be potential drawbacks to their flexibility.

Strength of Business

Unsecured business loans are heavily reliant on the health of your business. This means that unless you have sizeable turnover and trading length, it’s difficult for brokers to raise commercial finance.

As there is no security to fall back on, lenders want to work with growing companies that can present a history of successful trading. It reduces risk for them and, in turn, unlocks more flexibility for you with loan amounts and terms.

Interest Rate

Unsecured business loans are riskier for lenders to offer than secured loans, which means they can incur higher interest rates. This is because secured loans provide lenders with an asset to fall back on if repayments are defaulted.

Unsecured loans are also much faster to arrange, so customers pay a premium price for a speedy and hassle-free service.

Secured Business Loans

Secured business loans require a high-value asset as security, which comes it own benefits and drawbacks.

Benefits

Larger Amounts

Lenders are willing to be more flexible with loan amounts when they have an asset as security. Particularly if the asset is of high value, such as an expensive property or vehicle.

The more a business owner offers a lender as security, the more funding opportunities they’ll open to them.

Unsecured loans are more dependent on your likelihood to earn instead of what you already own, like secured loans.

Lower Interest

Lower risk for lenders means they can offer lower interest rates.

Business owners can use their assets (like property, vehicles, or equipment) to reduce the cost of finance products by offering them as security.

But take time to consider if it’s wise to risk your home or an expensive item to get a cheaper rate on your loan. If you’re business is strong and you’re confident in its potential to earn, a secured loan could be the route to saving thousands of pounds in interest.

Longer Terms

You can typically get secured finance over a longer period than unsecured finance. Lenders generally consider any term over 5 years a long-term loan.

This can be a great option for businesses that want to lower their monthly payments as much as possible, even if it means paying more interest overall.

Agreeing to a longer repayment schedule can unlock higher loan amounts, which is ideal for high-priced business purchases.

Drawbacks

Need a Sizeable Property

Property is the most common asset that business owners use as security for a secured business loan. But owning a property does not guarantee approval.

The loan term and amount you are eligible for will depend on the value of your property and the remaining mortgage balance as well. The more you can offer as security, the more financing options you’ll be eligible for.

Time Consuming

Secured business loans require a valuation process that can take up to 6 weeks or more.

It involves hiring a surveyor or valuer to request the necessary documents from the business owner about the asset. This includes planning consents, tenancy agreements, and management accounts to name a few.

There will also be an in-person inspection of the condition of the asset(s) and a valuation report to confirm it. If any issues arise (which often happens with tangible assets that depreciate), it can add months onto the funding process.

However, unsecured business loans UK can be arranged in as little as 4 hours.

Upfront Costs

You may save more money in the long term with the lower interest rates of a secured business loan, but there are still upfront costs to consider.

Legal and valuation fees regarding expensive assets like property can range anywhere from approximately £500 to £5000. The cost will differ depending on the amount and complexity of the work that’s required from your valuer.

What’s more, this investment isn’t refunded if your application for a business loan is denied afterwards.

What’s Best for Me?

Your decision on whether a secured or unsecured business loan UK is right for you will rely on collateral.

If you have high-value assets like property, a secured loan could work for you. It could unlock higher loan amounts, lower interest rates, and longer repayment terms. But you must be willing to risk the asset as security for lenders.

If your business health and credit is strong, an unsecured business loan is a faster and more straight forward funding process. Just remember that interest rates are likely to be higher.

Getting an Unsecured Business Loans UK

At Crispcap, we help small businesses get unsecured business loans to ease their cash flow and fuel their growth. You can apply for a business loan here or use our loan calculator to get an idea of terms and amounts.

Just this week, Crispcap arranged a loan for jewellery business: Lotus Diamond. The family-owned jewellery company has been in Haluk’s (the business owner’s) family for generations and has had a UK presence for over 20 years.

We arranged Haluk a loan amount of £19,000 so he could buy stock in bulk and unlock lower prices on each item.

At Crispcap, we’ve seen countless businesses use commercial finance in this way to save money. Purchasing in large quantities is a preferred method of trade from buyers and manufacturers alike.

Here is why bulk buying can bring about huge savings for SMEs like Lotus Diamond LTD and streamline their operation.

1. Production and Distribution Efficiency

When buyers order in bulk, it can have shockwave affects across manufacturers’ supply chains as their workload and costs can be greatly reduced.

This is because distribution costs have hiked in recent years, so ordering in bulk means there are more product(s) in less packaging with fewer shipping journeys.

This year, E-commerce businesses across the UK are seeing last-mile delivery cost increases of up to 90%, so companies everywhere are seeking ways to reduce distribution prices.

Companies will share savings with customers who buy more product in fewer orders and incentivise them with cheaper rates.

This is great news for SMEs with a steady turnover, as they can utilise these low rates to make savings of their own. Plus, bulk buying reduces packaging demand and CO2 emissions from shipping. This can help businesses meet their environmental quotas.

A business loan can help companies bulk buy, you can apply for funding in 30 seconds here.

2. Inventory

Keeping stock in storage can be expensive for suppliers. In fact, inventory holding costs are usually 20-30% of a business’s total inventory value annually.

Suppliers want their stock sold because the longer it stays in storage, the more it could cost their operation. That’s why they offer discounts on bulk buys, as bigger orders mean there are fewer overhead costs for them.

The issue of storage raises an important point for buyers as well, as ordering in bulk should be done with caution.

SMEs should only buy large quantities of stock if there is high demand from their business, or they have the capacity to store it. Otherwise, businesses can face workspace issues or damage to the products if they’re not kept correctly.

But for the most part, businesses know how much to buy, what they can afford, and how much they can store. So, making the most of a bargain shouldn’t be an issue.

For Haluk at Lotus Diamond LTD, his bank statements and full filed accounts displayed consistent and high turnover. He took a business loan and ordered more jewellery because he knew the products would sell and he’d make a huge saving from bulk buying.

3. Cash Flow Security

A stable cash flow is invaluable to every business, and that is particularly true for suppliers.

When a bulk order is made, a supplier is getting predictable revenue upfront, and that can have a wealth of benefits to their operation.

It means they can plan their supply chain more efficiently and keep the business running when individual orders might be slow. Upfront payment can also be quickly reinvested into the business to drive growth and future earnings.

Suppliers value financial stability, so they will lower their unit prices for bulk orders. In turn, SMEs get discounted rates and can buy more products for a lower cost. Bulk buying supports the cash flow of every business in the supply chain.

Ultimately, Haluk made a bulk purchase on stock to strengthen the business’s cash flow. The savings he’s made will be funnelled back into Lotus Diamond LTD for an expansion into new territories, including London and Wales.

4. Negotiation

With the promise of a high-volume order, SMEs are in a strong position to drive costs down.

SMEs should already get a substantial discount with a bulk buy, but they can still negotiate a lower price. Custom order like this makes up for most business transactions today.

These discounts aren’t guaranteed, but it’s important for small businesses to remember the leverage they have when bulk buying. Plus, suppliers deeply value the stable income from high-volume orders, so it’s certainly worth putting an offer in to see what comes of it.

Haluk at Lotus Diamond followed this practice. After securing an unsecured business loan, he negotiated a lower price per unit of jewellery from his suppliers. They were happy to go ahead with the discounted rate in exchange for the financial security of his order.

Haluk has made a huge saving on the stock and put some aside for the eventual launch of his new stores too.

Why Bulk Buy?

Bulk buying is cost-effective because it’s mutually beneficial for suppliers and buyers.

For suppliers, it offers a stable income that can boost growth and reinvestment. It also allows them to streamline production and distribution for a cheaper and more eco-friendly supply chain.

For buyers like SMEs, it’s the key to unlocking cheaper rates per unit and increasing their profit margins. Bulk buying also helps SMEs meet the demands of their consumers, which will improve customer retention and satisfaction.

Bulk buying has the power to strengthen the cash flow of any business.

Loan For Jewellery Business and Similar SMEs

Whist bulk buying has an enormous wealth of benefits for a SMEs, it requires a large initial investment. This can be difficult for small businesses that need to protect their cashflow but also want long-term savings on their stock.

Business finance can give you an injection of funding to buy the stock you need and save money in the long run. You can apply for a business loan and choose from a variety of loan terms without affecting your credit score. Or use our loan calculator to choose a repayment schedule.

The energy crisis in the UK spiked in 2022 when a decrease in Russian supply sent shockwaves across the European markets. What’s more, the global demand for energy after the lockdowns hiked prices before the war between Russia and Ukraine began.

The landscape of energy prices has been volatile in the UK ever since. Wholesale energy costs dropped in February, but they’re set to rise again as the winter months approach in October 2025.

Households can somewhat rely on an energy price cap to keep costs at a manageable rate, but there is no government-backed system in place for businesses.

This means that UK-based businesses are facing soaring energy prices, and that is particularly true for Daniel, who owns Zuma Rock Restaurant & Bar. He recently took out a business loan to manage his cash flow as the cost of energy was draining his finances.

How Did the Business Start?

Daniel founded Zuma Rock in 2023 with his wife. After saving for many years, they bought a commercial property to renovate and open their own bar and restaurant that specialises in African cuisine.

The UK was recovering from the energy crisis in 2022 when Daniel started his Kettering-based restaurant. Prices were gradually decreasing, and it seemed like a less volatile environment to begin a new business venture.

Source: nationalgrid.com Prevailing View tool (system average price)

Why Did Zuma Rock Get a Business Loan?

Daniel applied for a business loan to ease Zuma Rock’s cash flow. The extortionate cost of energy to run a restaurant was having a devastating impact on their day-to-day operation. Their issues can be pinpointed to two main factors.

No Government Support

Zuma Rock is one of the many SMEs across the country that is suffering because there is not an energy price cap for businesses. There is only a price cap for domestic households.

The energy price cap is a limit set by Ofgem that suppliers can charge per unit of gas and electricity. It prevents suppliers from overcharging so households can keep up with potential increases in prices.

Business owners are not protected in the same way. Every company uses energy to vastly different degrees and amounts, so it’s difficult for the government to provide a singular limit that applies to all corporations.

Nonetheless, there was a scheme that ran from October 2022 to March 2024 called The Energy Price Guarantee that supported businesses during the height of the energy crisis in the UK. It limited the cost per unit of energy from suppliers so SMEs could survive the price hikes that were occurring.

The scheme ended last year when energy prices began to deflate, but many SMEs had become reliant on the price cap to afford their running costs. What’s more, energy is still vastly more expensive than pre-pandemic levels, so businesses are left to deal with higher prices with no support.

Restaurants Are Energy Intense

Zuma Rock is one of the many businesses that are adjusting to this change. Additionally, of all commercial buildings, restaurants use the highest amount of energy per square metre, so they will be hit the hardest with increased bills.

Daniel explained that the biggest drivers of energy costs in his business include:

Cooking

Equipment like ovens, grills, and hobs use a lot of electricity over long hours.

Refrigerators

Keeping food chilled and frozen is essential to avoiding bacteria but can hike energy costs.

Hot Water

Constant use of running taps and dishwashers requires the use of boilers and water heaters.

Ventilation

Ventilators need to be used to extract smoke, steam, and heat from kitchen areas.

Lighting

Bright lighting is required in the kitchen as well as comfortable lighting in the dining area. Together, these strain electricity resources.

Zuma Rock is just one of the many restaurants across the UK that are feeling the pinch of energy cost hikes. Their entire industry is bound by constant use of heat, cooling, and lighting resources to trade.

How Has a Business Loan Helped Zuma Rock?

The aftermath of the energy crisis in the UK has had a huge financial impact on Zuma Rock. With higher bills to pay, the company’s cash flow has become more strained than ever.

Daniel sought commercial finance to help with the issue.

Boosted Cash Flow

He got in touch with Crispcap for a cash flow loan to inject some working capital into the business.

Daniel told us that the result has been fantastic. After getting funded quickly and stress-free, he’s been able to make crucial payments for the business much more easily.

These mostly include stock and equipment purchases to keep the restaurant thriving. He’s also using the cash injection to cover the costs of recruiting and training new members of staff.

Loan term

Daniel opted for a cash flow loan of £2,000 over a monthly repayment term of 6 months.

For him, this influx of money will allow his business to keep moving when energy prices unpredictably spike. It’s a safety net to manage the volatile conditions of the market.

The 6-month term is a manageable repayment plan that doesn’t jeopardise the smooth running of the company. The monthly instalments allow for better financial planning and, ultimately, growth.

Daniel has said he will be returning to Crispcap after the term is finished for a higher loan amount.

What’s Next for Zuma Rock Since the Energy Crisis in the UK?

With a business loan, Daniel has found a reliable system for keeping up with energy payments and preserving his cash flow. Now he’s looking at new ways to grow the business with commercial finance.

The business owner has a plan to invest in creative marketing opportunities. Website and radio advertisements have caught his interest, and he looks forward to testing different strategies that could increase restaurant bookings.

At Crispcap, we’ve worked with countless businesses to raise finance for their marketing strategies and website builds. We look forward to supporting Daniel more soon.

Final Thoughts

It’s clear that some businesses are still struggling with energy prices in 2025. Whilst household energy caps are widely reported on, there has been little support for businesses since the Energy Price Guarantee ended last year.

Daniel’s business, Zuba Rock, is an example of how SMEs are seeking ways to protect their cash flow amongst this uncertainty. A business loan can be a much-needed source of backup finance if bills constantly fluctuate.

If the government can’t produce a scheme for controlling commercial energy prices, business finance can be a helpful way to manage unpredictable costs.

You can apply for an unsecured business loan in less than 30 seconds without affecting your credit score. A member of our team will be in touch shortly after to explore your finance options.