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Business loans: Get a quote

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

  • Apply in minutes
  • Borrow £1,000 - £15,000,000
  • Choose your own repayment schedule: from one month to five years or more

Compare business loans from leading providers

Our data experts check each company before we add them to our comparisons, so you can be confident that you will only see results from genuine companies.

Puzzle Funding
Alius Finance
Think Business Loans
Tide
Royal Bank of Scotland
Previse
365 Business Finance
Nationwide Finance
Funding Circle
Nest Business Loans

How to get a business loan

1

Decide how much you want to borrow

This is the amount of money you need to borrow to fund a business priority.

2

Work out long you need to repay the loan

This is the length of time you need to pay back the loan with interest.

3

Find the type of business loan you need

It's important to know which type of loan is best suited for your business.

4

Calculate the interest rate or APR

This is the rate at which you'll reimburse the loan and dictates the monthly repayment.

5

Check if any conditions are attached to the loan

Sometimes lenders attach additional criteria, such as a personal guarantee.

Business loan deals

12 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Previse Business Loan
Loan Type
Unsecured term loan
Loan amount
£10,000 to £500,000
Loan term
3 months to 9 months
Previse Business Loan
Previse Instant Advance is a transformational, fast cash flow facility, designed to help your business grow. InstantAdvance provides funding between £10k and £500k and is completely unsecured. This means they don't require any personal guarantees.
Apply and get finance within 48 hours. To qualify you must be a limited company with a minimum active trading history of 6 months. You must also have a minimum annual turnover of £250,000.


Compare another type of business loan

What is a business loan?

A business loan is a credit arrangement designed for commercial organisations.

Taking out a business loan is a useful way to get money to finance big changes or overcome small financial hurdles. You can also use a business loan to start a new company as well as grow an already established business.

A business loan enables your organisation to borrow a set amount of money, which the business has to pay back to the lender with interest over a certain period of time. In that sense, it functions in the same way as a personal loan.

You can find a variety of different types of business loans on the market, but the majority fall into three categories: secured, unsecured and peer-to-peer.

Types of business loan

There are a number of different finance options to consider:

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 sums from £500 to £5 million or more.

Every loan company has different limits on how much it 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 amountLoan termMonthly PaymentTotal interest
£7,5001£637.4£148.7
£7,5002£324.5£287.5
£7,5003£220.2£428.3
£7,5005£136.9 £714
£7,5007£101.3£1,006.7
£7,50010£74.7£1,458

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

Once you apply for a loan, the lender assesses your business finances and decides whether to offer you a loan and what the interest rate should be. Its assessment includes your business's:

  • credit rating

  • age

  • profitability

  • desired loan

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.

The advertised APR that you see before you apply is the rate offered to at least 51% of applicants. That means almost half of those offered that business loan might be offered a higher loan rate than the one advertised.

Unsecured term loans

The comparison table above shows the average business loan rates for unsecured term loans.

It's important to check different types of business funding before making a decision because interest rates can differ significantly.

Salman Haqqiquotation mark
Business loans can be an expensive way to borrow money. But you can still get a good deal and save money if you compare business loans. Make sure you only borrow the amount you need and apply for the type of loan that suits your business.
Salman Haqqi, Personal Finance Editor

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:

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

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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¹These figures have been calculated using money.co.uk's loan repayment calculator tool.

Last updated: 8 July 2022