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Business loans

Compare UK business loans

A secured or unsecured business loan could help you grow your business, cover running costs or even fund a new company.

Compare a range of business loans to find the right type of finance
ThinkBusiness works closely with banks and lenders to get exclusive deals
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We work with and compare loans from high street banks, challenger banks and alternative lenders.

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How to compare UK business loans

Compare business loans from a range of UK lenders in three simple steps

1

Give us a few details

Tell us a bit about your business and why you need funding. We'll use cutting edge iFund technology to find the most suitable loans and lenders.

2

We'll run a comparison

We'll compare what's on offer from our panel of lenders and our account manager will talk you through the options to find a loan that works best.

3

You get your funds

Once you've decided on a loan, we'll take care of the rest to ensure that you get your funds as soon as possible. Your account manager will be on hand to help.

What is a business loan?

A business loan is a form of credit designed for commercial organisations.

Taking out a business loan is a useful way to get the money you might need to finance big changes or overcome small financial hurdles, whether it's to start a new company or grow an already established business.

Just like a personal loan meant for an individual, with a business loan your organisation can borrow a set amount of money, which the business would then have to pay back to the lender with interest over a certain period of time.

You can find a variety of different types of business loan on the market, but most will fall into one of three main categories – secured, unsecured and peer to peer.

Types of business loan

With so many finance options, it can be difficult to know where to start. Our partner, ThinkBusiness, will help you find the right loan for your business.

Unsecured business loans

For these loans, your business borrows money without using its assets – such as real estate, stock or machinery – as security.

Secured business loans

With these loans, the business borrows money using one of its assets – such as property or shares – as security for the lender.

Peer-to-peer loans

Taking out a peer-to-peer loan means you borrow from an individual, rather than a bank or organisation, through a P2P lending platform.

Asset finance

This type of business finance allows you to borrow against the value of any assets in your business. This includes machinery, IT equipment and even fixtures and fittings. Asset-leasing agreements can also be used to finance new equipment.

Commercial mortgage

These work like residential mortgages but can only be used for commercial property, including any type of building or land you want to buy as an investment. These loans are available for up to 75% of the property's value and the interest paid on the mortgage is tax-deductible.

Bridging loans

Bridging loans are used to cover a shortfall in funding, usually when buying a commercial property or refurbishing an existing one. This type of loan usually has a shorter repayment term and higher interest rates and fees than other types of business loans.

How much can you borrow with a business loan?

With a business loan you can borrow as little as £500, or as much as £5 million and even beyond that.

Every loan company gives different limits on how much they will lend. So if you want to borrow a large amount, your choices for a lender might be limited.

How long do I need to repay my business loan?

Business loans can have a short repayment period like a month or a longer term such as 30 years.

When deciding how long you need to repay your loan, you need to be realistic about what you can afford to pay each month.

The longer your loan term, the lower your monthly payments will be, but you'll pay more in interest overall.

Our loan repayment calculator can help you determine how long you need to repay your loan based on how much you can afford to pay every month.

This table shows how the term affects what you pay in interest¹.

Loan amount	Loan term	Monthly Payment	Total interest
£7,500	1	£637.4	£148.7
£7,500	2	£324.5	£287.5
£7,500	3	£220.2	£428.3
£7,500	5	£136.9	£714
£7,500	7	£101.3	£1,006.7
£7,500	10	£74.7	£1,458

How do I know what business loan rate I'll get?

The interest rate you're offered on your business loan is based on a financial assessment of your business by the lender. They'll decide whether to offer you the business loan, and what interest rate to offer you, based on:

Your business's credit rating

The amount and term you're asking for

The age of your business

How profitable your business is

If the lender thinks your business loan is low risk, you'll be offered a lower interest rate. If they think your loan is high risk, you'll be offered a higher interest rate.

Other ways for businesses to borrow money

A business loan isn't the only way of securing finance for your business. Other options you could try include:

Some business credit cards come with deals for 0% interest on purchases for a set period. Others offer rewards like air miles or cashback. A business credit card is good for day-to-day transactions and expenses, plus several members of staff can have a card. But remember that they're not great for long-term borrowing. Most charge a high interest rate once the introduction period ends. Find out more about business credit cards here.

For quick business finance, a business loan may be the best option, but these six ways to get finance for your business extend your options – although some tend to work better for some businesses than others. You could also consider combining several types of funding. That way, you can get the most value out of each type without relying too heavily on any one source.

Pros and cons of business loans

Before deciding to take out a business loan it's important to weigh up the advantages and disadvantages to make sure it's the right form of credit for your circumstances.

Pros

On the positive side, business loans can:

help provide funding for expansion plans
be used to overcome temporary cashflow problems
offer capital for startup companies

Cons

There are also drawbacks to business loans, including:

Tough eligibility criteria
Repayments that eat into cash flow
High interest rates for businesses with a poor credit history

Business loan FAQs

Compare another type of business loan

Why compare loan deals with money.co.uk?

Comparing business loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.