Bank Loans: These are loans provided by your bank or building society. Your business borrows a lump sum which you then pay back over a set period of time. Most bank loans will require a director’s guarantee – this means that if your business is unable to pay for the loan, your director will have to pay it back from their personal funds. Revolving credit facilities: With a revolving credit facility, a business owner pays a commitment fee to a financial institution which they can withdraw as and when they require the money. It is generally used by businesses to cover their operating costs where they may experience sharp fluctuations due in their cash flow due to unexpected costs. Short Term lending: An individual looking for a short-term loan would be looking for anything from a few days to a few months, but typically has very high interest rates. Asset Backed: With a loan of this nature individuals are able to use an asset to secure the loan allowing them to borrow more than is normally permitted in a standard loan. To secure the loan you could use machinery, property, stock or land. Government start-up: Government start-up loans are provided for by the government for the specific purpose of helping Start-ups to access low-interest loans and even grants, as entrepreneurs look to set up their business. With this loan you can look to borrow up to £25,000 which is to be paid back over one to five years.