If your Jersey business needs money to cover a seasonal dip or pay for stock before customers pay you, the usual choices are a working capital loan, asset finance or invoice finance, depending on what is causing the gap. A term loan suits a one-off need; a revolving or invoice-based facility suits a gap that comes back every year. The right one depends on how your cash moves, so start there rather than with the rate.
Most Jersey businesses are small — lenders are used to that
Small firms are the norm on the island, not the exception. Statistics Jersey's Labour Market report for December 2024 counted 8,440 active private-sector undertakings, 59% of them single-person undertakings, and 89% employing fewer than 10 staff.
What that means in practice: a lender assessing a two- or three-person business in Jersey is not looking at an unusual case. What they will want to see is that the owner understands the business's own cash cycle — when money comes in, when it goes out, and how long the lean months last.
Match the facility to the cause of the gap
| What is causing the gap | Facility usually considered |
|---|---|
| Quiet months between busy seasons | Working capital loan |
| Buying equipment, vans or machinery | Asset finance |
| Customers paying on long credit terms | Invoice discounting or factoring |
| Expansion, fit-out or a new site | Medium-term business loan |
A common mistake is using a long-term loan to fix a short-term, recurring gap. You end up paying interest all year on money you only needed for three months. If the gap is predictable, ask about facilities you draw on and repay as needed.
How your GST position shapes the conversation
A Jersey business must register for GST if its taxable supplies reached £300,000 or more in the preceding 12 months, or if it expects to pass that figure in the next 12. Businesses below the threshold can register voluntarily.
This matters to a lender for two reasons. It is a quick marker of the size of your turnover, and it tells them what records you should already hold — a registered business has to charge GST and keep books and records. The Jersey threshold is not the same as the UK VAT threshold, so a funder working from mainland assumptions may read the same accounts differently.
Your business licence is part of the file
Under the Control of Housing and Work Law, gov.je states that when you start a business you need a business licence, and that once you have one you can employ staff. The licence sets staffing limits for Licensed, Licensed for Lease Only and Standard employees, and going over those limits is against the law.
If your borrowing plan depends on hiring — say, extra seasonal staff — check that your licence permits it before you build the headcount into a cash flow forecast. A lender reading your projections may ask the same question.
What to have ready before you apply
Lenders will ask different things, but most want to see:
- recent accounts, and management figures for the current year;
- a cash flow forecast that shows the gap and how the loan is repaid;
- your GST registration details, if registered, and your business licence;
- details of existing borrowing and any personal guarantees already given;
- for asset or invoice finance, the asset quote or an aged debtor list.
The costs that sit outside the interest rate
Ask every lender for the full cost in writing: arrangement fee, any annual or non-utilisation charge, early repayment terms and whether a personal guarantee is required. A personal guarantee puts your own assets behind the business debt, so take independent advice before signing one.
Comparing options through Best Loans Jersey
Best Loans Jersey is an introducer, not a lender. You can send an enquiry about small business loans without a credit check, and the team compares options from several lenders across Jersey and Guernsey. We aim to call you back within one business day to talk through the gap you are trying to fill.
Getting several quotes is worth the effort. The first offer you receive is not necessarily the one that fits your trading pattern.
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