If you’re a contractor or small business owner, then you will no doubt be pleased to hear that Barclays now offer lending without the usual hassle.
One of the complaints I’m always hearing is how difficult it is for self employed people, especially contractors, to get a loan quickly and easily. Usually it involves a lot of forms to fill out and then a lot of waiting around until…declined!
While Barclays are not offering any guarantees that you will get approved for a business loan, it’s good to hear that they have made the decision process pretty much instant, which means you get to know if you are approved or declined almost straight away.
So how do you apply? The best way is through their mobile app, where you are asked a few basic questions and then how much you want to borrow.
They currently offer up to £25,000 and will let you know a decision within 60 minutes. Barclays are the first bank to offer this kind of almost instant lending, although if reports are to be trusted just about all of the high street banks are set to follow.
While it’s beneficial for contractors to get decisions on their business loan application as quickly as possible, I would like to see the lending remain responsible and not get to the point where anyone gets approved.
We had this kind of situation a few years ago of course, and it’s one of the reasons why the UK found itself in a less than desirable financial situation. Let’s hope some lessons have been learned.
If you are already a business bank account holder with Barclays then you’ve probably already received messages from them about this with a note telling you how much you could potentially borrow. While it can be tempting to take out a business loan when offered one, it’s a good idea to give it a lot of thought before moving forward, and in my opinion, only apply for a loan when you really need one.
At the end of the day, being a contractor can be difficult enough without having to struggle with loan repayments every month.
What I find interesting is that many thought business lending in the UK would slow down after the Brexit vote, but the fact that Barclays have introduced this new feature to their App and many other banks are doing the same, it would suggest to me the opposite is true.
A spokesperson for Barclays recently commented, “Since the EU referendum our appetite for lending has not diminished and we continue to lend to a business in the UK every 4 minutes.”
Like I said, let’s just hope that lending is responsible, but if it means a contractor can get the funds they need then I’m all for it.