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Business Loans UK: Get A Quote

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

  • Borrow £1,000 - £15,000,000
  • Repayment periods from one month to five years
  • From 6.03% APR

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 you'll repay the loan at and decides how much you'll pay monthly.

5

Check if any conditions are 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.

Business Loan Deals

7 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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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.
Swoop Business Loan
Loan Type
Unsecured term loan
Loan amount
£50,000 to £5,000,000
Representative APR
6.85% APR
Loan term
3 months to 96 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.
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.
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.
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 Recovery Loan Scheme application through multiple RLS 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.
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.


What is a business loan?

A business loan is a type of borrowing designed for commercial organisations. A standard or personal loan would be instead aimed at an individual or couple for personal use.

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 that is to start a new company or grow an already established business.

Just like a personal loan, with a business loan your organisation can borrow a set amount of money, which the business would 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 three main categories – secured, unsecured and peer to peer.

Types of business loan

Unsecured business loans

For these loans, your business borrows money without using its assets, such as stock or machinery, as a 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 through a P2P lending platform, rather than a bank or organisation.

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 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 overall.

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

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 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.

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 on this page.

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.

"Business loans are an expensive way to borrow money. But you can still get a good deal and save money if you compare loans.

"Make sure you only borrow the amount you need and apply for the type of loan that suits your circumstances."


Other ways for businesses to borrow money

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

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.

These are offered over weeks or months, and go up to £200,000. They have higher interest rates than other types of borrowing.

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.

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.

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 always guaranteed. Search for business grants in your area.

You might find these six ways to get finance for your business helpful. Some of these options might be best for certain types of businesses, 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 businesses 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.

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.

Proud to be award winning

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.

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

Last updated: 12 August 2021