However profitable your SME is, there are likely to be occasions when you need a temporary cash boost – and a commercial loan could provide you with just that. However, if you want your loan application to be accepted, you'll need to be well-prepared.

Whether you require a short-term cash boost to cover a sudden expense or a long-term solution to facilitate business growth, the world of business loans can be a confusing place. To make life easier, here's a rundown of some of the main types of loan provider that exist within the UK.

Running a successful company can be tough and there are always times when business owners need a helping hand. Whether you need funding to buy assets, update your corporate IT system or account for seasonal cash flow fluctuations, being able to access a loan promptly could allow your business to bloom. So when could taking out a loan be beneficial for your company – and when should you consider another option?

It doesn't matter how profitable you believe your business concept could eventually be, you'll need funds to get your company off the ground. Many company founders looking for finance iminmediately contact conventional lenders, such as banks, and apply for start-up business loans. However, start-up loans aren't the only funding solutions available for fledgling companies – and sometimes they aren't as suitable for new firms or easy to obtain as you might think.

The basic difference between a business loan and a personal loan is simple: A personal loan is provided to an individual for non-business related purposes, whereas a business loan is taken out by business entity for reasons relating to growth or operations. The business in question could be a partnership, limited company or a self-employed sole trader.