8 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Think Business Loans Business Loan
Loan Type
Unsecured term loan
Loan amount
£25,000 to £5,000,000
Representative APR
6.36% APR
Loan term
3 months to 72 months
“Rated 5* “excellent” on Trust pilot. Our experts will compare multiple business finance products across 100s of lenders to find the option that is right for you. 75% of our customers receive an offer.
Think Business Loans is a credit broker and not a lender. Minimum turnover is £200,000 with 1 year trading.
Representative Example: The representative rate is 6.36% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.36% p.a. (fixed) you will repay £116,504.71 in total.
Swoop Business Loan
Loan Type
Unsecured term loan
Loan amount
£50,000 to £1,500,000
Representative APR
6.85% APR
Loan term
3 months to 72 months
Simple, secure and speedy access to over 1,000 funding providers without affecting your credit rating. Team of five-star Trustpilot-rated experts to guide you through the process.
Swoop is a broker, not a lender. Minimum 1 year of trading and Minimum turnover of £200,000.
Representative Example: The representative rate is 6.85% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.00% p.a. (fixed) then you will repay £117,670 in total.
Funding Circle Business Loan
Loan Type
Unsecured term loan
Loan amount
£10,000 to £500,000
Representative APR
11.79% APR
Loan term
24 months to 72 months
To be eligible to apply you need to be based in the UK and have been trading for 2 years. Funding Circle also offers the Government's Recovery Loan Scheme. A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses.
If Funding Circle can offer you a business loan for the same amount on similar or better terms, without requiring the guarantee provided by the scheme, they will do so. The rate you will get will vary based on your circumstances.
Representative Example: The representative rate is 11.79% APR (fixed) so if you borrow £100,000 over 72 months at a rate of 9.4% p.a. (fixed) you will repay £137,779 in total.
Fluidly Business Loan
Loan Type
Unsecured term loan
Loan amount
£15,000 to £500,000
Representative APR
7.9% APR
Loan term
6 months to 60 months
View funding solutions available to you in under 30 seconds. Fluidly's 5* rated specialists will support you in applying to the best products for you.
Fluidly is a credit broker not a lender. Minimum 2 year of trading and £100k turnover pa.
Representative Example: The representative rate is 7.9% APR (fixed) so if you borrow £100,000 over 24 months at a rate of 4.00% p.a. (fixed) you will repay £104,219.84 in total.
Funding Options Business Loans
Loan Type
Unsecured term loan
Loan amount
£1,000 to £15,000,000
Representative APR
6.03% APR
Loan term
1 month to 120 months
Funding Options is a Credit Broker and not a Lender. Their APR starts from 2.75% and has an average of 6.03%. They can help you prepare and submit your Coronavirus Business Interruption Loan Scheme application through multiple CBILS accredited Lenders.
Minimum Turnover is £60,000 with 12 months minimum trading.
Representative Example: The representative rate is 6.03% APR (variable) so if you borrow £50,000 over 24 months at a rate of 6.03% p.a. (variable) you will repay £53,114.16 in total.
Funding Xchange Business Loan
Loan Type
Unsecured term loan
Loan amount
£1,000 to £500,000
Representative APR
10.5% APR
Loan term
1 month to 120 months
Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.
Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.
Representative Example: The representative rate is 10.5% APR (variable) so if you borrow £50,000 over 24 months at a rate of 10.5% p.a. (variable) you will repay £55,650 in total.
Alius Finance Business Loan
Loan Type
Unsecured term loan
Loan amount
£10,000 to £1,000,000
Representative APR
6.68% APR
Loan term
3 months to 60 months
No obligation funding decision, typically within 24-48 hours. Flexible options including, interest-only and no early repayment penalties.
Available to UK limited companies only. Minimum trading history of 6 months.
Representative Example: The representative rate is 6.68% APR, so if you borrow £10,000 over 5 years you will repay £11,790.26 in total.

What is a business loan?

Whether it's to start a new business or grow an already established business, a business loan is a useful way to get the money you need to finance it.

Just like a personal loan, with a business loan can borrow a set amount of money, which the business would would have to pay back to the lender with interest.

Types of business loans that can you get

Unsecured business loans

These are loans where you borrow money business, without using its assets such as stock, or machinery as a security.

Secured business loans

These are loans where you borrow money for the business using one of its assets as security for the lender.

Peer to peer loans 

These are loans where you borrow from an individual through a P2P lending platform, rather than a bank or organisation.

When you're thinking about business loans, remember that there are several types of unsecured and secured loans for a business that wants to borrow money. The types include:

  • Bank loans: These are offered by banks and building societies and can be up to £250,000 over one to 15 years. They're usually unsecured loans.

  • Short-term loans: These are offered over a few weeks or months, and go up to £200,000. They have higher interest rates than other types of borrowing.

  • Peer-to-peer loans: These are when your business borrows money from investors instead of a bank. Some investors loan up to £1 million. Here's how peer-to-peer lending works.

  • Invoice finance: This is when a lender buys your outstanding invoices, releasing the money you're owed by your customers. You can find more information on invoice financing in our guide on how business loans work.

  • Cash advance loans: These are when you borrow money against your business's future debt or credit card sales. They come with set fees rather than an interest rate.

When you've decided on the best business loan for your needs, you can do a loan comparison using the table above. Then you can choose a lender and apply for your loan online.

How much can you borrow with a business loan?

With a business loan you can borrow as little as £500 all the way up £5 million and above.

Every loan company gives different limits on how much they can 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 of up to 30 years.

When you're deciding how long you need to repay your loan, 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 over all.

Here's how the loan term and affect how much you pay in interest:

Updated 8 June 2021
Loan termMonthly PaymentTotal interest
1£637.4£148.7
2£324.5£287.5
3£220.2£428.3
5£136.9 £714
7£101.3£1,006.7
10£74.7£1,458

Using our loan repayment calculator is a good way of finding cheap business loans available to you.

How to get a business loan

1

How much you want to borrow

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

2

How long you need to repay the loan

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

3

The type of business loan you need

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

4

The interest rate or APR

This the percentage rate at which you'll repay the loan and decides how much you'll have to pay monthly.

5

Any conditions attached to the loan

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

Like all loans, business loans are given based on affordability and a credit check. Lenders will look at your business's credit rating and financial stability to decide what interest rates to offer you.

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

  • how much money you're asking for

  • what repayment term you want

  • your business's age

  • 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.

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 higher loan rates than what's advertised.

Unsecured term loans

The average business loan rates on unsecured term loans in our comparison can be seen in the table below.

Remember that the interest rates on other kinds of business funding explained in this comparison can differ a lot. So don't forget to do your research when you're looking for the best business loan rates for you.

Other ways of borrowing money for business

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

Credit cards: 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 longer-term borrowing. Most charge a high interest rate on purchases once the introduction period's over. Find out more about business credit cards. Find out more about business credit cards.

Crowdfunding: This is when you pitch your business idea online and offer perks or rewards to investors if your target's met. It's sometimes called donation or reward crowdfunding. Crowdfunding can be a good alternative to start-up business loans for new business ventures. But remember getting the amount you need can be a slow process. Find out more about how crowdfunding works.

Government grants: These are designed to help new businesses. They can also help businesses in certain sectors, or businesses in specific areas of the UK. The good thing about grants is that you don't have to pay the money back, and you keep full ownership of your business. Each grant has different criteria, so the finance isn't ever guaranteed. Search for business grants in your area.

You might find these six ways to get finance for your business helpful. Some of the other options might be good certain types of business. But, if it's quick business finance you're after, a business loan might still be the best option.

You've also got the option of using a combination of several types of funding for your business. That way, you can get the most value out of each type without relying on any one source.

Pros and cons of business loans

Pros
  • Access to funding for expansion
  • Can be helpful during temporary cash flow problems
  • Can help those without sources of capital get funding to start a business.
Cons
  • Can be difficult to qualify for
  • Repayments can eat into cash flow
  • Repayments can be costly for business with low credit scores.

Business loan FAQs

It stands for annual percentage rate, and is the interest you pay on the total value of your loan. The lower your APR, the lower your monthly payments.

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.

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

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.

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.

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.

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

Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority (FCA). Here is more information about How our website works.

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.

Last updated: 2 August, 2021