To find the best loan for your business, think about:

  • How much you want to borrow

  • What term you want to pay the loan back over

  • Which type of loan is right for your business

You can then use this comparison to find business loans that suit your needs, and pick the cheapest one.

Our loan repayment calculator could help you work out which business loan is the cheapest.

How much do you need to borrow?

Each loan company offers different limits on how much they can lend, so your choice may be limited if you want to borrow more than a certain amount.

For example, not many lenders offer loans over 250,000, but some can lend you more than 1 million. Only borrow what you need, to avoid repaying more than you have to.

This comparison shows how much each loan company can lend you, so only compare the ones that can offer the amount you need.

How long do you need to pay it back?

You can get business loans you can pay back over a short period, for example one month, or a longer term of up to 15 years.

Think about how much you can afford to repay each month when choosing your term, because the longer it takes to pay back, the more you pay in interest.

Which type of business loan should you get?

There are several different types of business loan you can get, and the right one for your business depends on how much you need, and how long you want to borrow for:

  • Bank loans are offered by banks and building societies, and some can lend you up to 250,000 over a term of 1 to 15 years. These are usually unsecured loans.

  • Short term loans are offered over a few weeks or months, and you could borrow up to 200,000. They come with higher interest rates than other types of borrowing.

  • Peer to peer loans are when your business borrows money from investors rather than a bank, and some offer loans of up to 1 million. Here is how peer to peer works.

  • Invoice finance is when a lender buys your outstanding invoices, releasing the money you are owed by your customers. Find out how invoice finance works here.

  • Cash advance loans are when you borrow money against your business' future debit or credit card sales, and they come with set fees rather than an interest rate.

  • Government start up loans are designed for new businesses, and you could borrow up to 25,000. They offer low interest rates and grants to help start up businesses.

This comparison includes all of these business loan types. For more help, use these six ways to get finance for your business.

Business loan FAQs

Q

Do I need a business account for a business loan?

A

It depends on the loan you choose and the lender. Some banks may require you to have their business current account before offering you a loan.

Q

Do I need to be the owner of a company to get a loan?

A

No, most loans can be applied for by a registered company director.

Q

Can I get a secured business loan?

A

Yes, you can secure against your business assets, like your property, stock or machinery. Your assets will be at risk if you do not keep up your repayments.

Q

Can my small business get a loan?

A

Yes, but the type may depend on the size and finances of the business. For example, only new businesses can get government start up loans.

Q

Does my business have a credit record?

A

Yes, and it may affect whether or not your loan application will be accepted. You can find the credit score for your business on the Experian website.

Q

Could I lose my home if my business defaults?

A

It depends on the type of loan you choose, whether it is secured and if you sign a director guarantee. Always check the terms and conditions carefully.

About our loans comparison

Q

Who do we include in this comparison?

A

We include business loans available directly from lenders and through brokers on our panel. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.