Find the finance you need for your small business with our range of small business loans. Compare rates and repayment periods and find the right loan for your company.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
1
Prepare a business plan
Think about why you want to borrow the money, how much you need, and over how long you want to repay it. If you decide that a long-term loan is right for your business, look for the cheapest on the market.
2
Compare your options
Look through the options to find the best fit for your business needs. Check any conditions attached to the loan, then pick a deal that offers you the lowest interest rate with a term length that makes the repayments affordable.
3
Apply for the loan
While banks offer commercial finance options, some lenders and brokers only operate digitally. To find the best long-term loan, you need to compare quotes on the internet. Once you’ve decided on the provider, you’re ready to apply.
It’s exactly what you’d expect – a cash loan suitable for a small business.
As with any loan, you must meet the lender’s criteria. These vary between providers, but typically your business needs to employ no more than 50 people and have an annual turnover of less than £150,000 to qualify.
You can use small business loans for most company expenses, including:
employee wages
rent for your work premises
equipment
marketing
training
recruitment
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The type of company you run shouldn’t affect your chances of getting a small business loan – home businesses, pubs, retail establishments, salons and more can all benefit. A loan is a helpful way to boost your cash flow, grow your business or manage a period of uncertainty.
Yes. That said, if you want funding for a new business, you may need to apply for a start-up loan rather than a small business loan. A start-up loan helps companies with limited trading experience apply for cash.
If you’re trying to establish a new business, a government start-up loan could be a good option. These can offer between £500 and £25,000, a fixed interest rate of 6%, payment terms of between one and five years, and are backed by the government.
Apply online – it’s a quick and easy process, and the money arrives in your account quite rapidly too. Use the comparison above to check the loan amount each lender can offer.
The amount of money available depends on your business’s income, while acceptance relies on passing a credit check. You don’t need a large turnover, however, or to have been up and running for a specific time.
Before comparing the cost of small business loans, check the following:
Do any lenders offer the amount you need?
What is each lender’s representative annual percentage rate (APR)?
How long is the term for paying back the loan?
Once you’ve got a shortlist, work out which loan is the cheapest and most suitable for your business.
The amount you pay depends on several factors, including:
How much you borrow
The term you choose
The APR
You get a fixed APR for the duration of your loan, which is confirmed when you go through the credit check as part of your application. The higher the APR, the more interest you pay. Compare a range of loans to find the lowest possible APR for the sum you want to borrow – the lower the APR, the less interest you need to pay. Some lenders have loan calculators on their sites to give you an idea of your repayments.
If you want to take your business to the next level but don’t have the funds to do so, you could consider getting a business loan.
Find out how to get a business loanWith the right type of borrowing you could pursue business opportunities that would otherwise pass you by, here's how.
Read more on borrowing for your businessIf you need funds to help your business grow or expand, a business loan could offer the solution you need. Here is how they work and how to get the right loan for your business.
More on how business loans workComparing 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.
Our full guide to sacking the boss and starting out on your own - from finding a unique business idea, to getting the money to fund it all the way through to secrets and tips from people who've made it themselves.
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Last updated: 15 February, 2022
