It is a cash loan for small businesses in the UK. You must meet a lender's criteria to apply for this type of loan.

For example, your business must not employ more than 50 people, or have an annual turnover over 150,000.

You can use a small business loan for most business expenses, including:

  • Employee wages

  • Rent for your work premises

  • Stock

Use the comparison above to check the loan amounts each lender can offer. However, the amount you could get depends on your business' income and acceptance relies on passing a credit check.

How to get a small business loan

If you need a cash injection for your small business, you could apply for a small business loan.

To apply for a small business loan you do not need a large turnover, or to have been running for a set time.

Before you can compare the cost of small business loans, you need to check:

  • Lenders can offer the loan amount you need

  • The representative Annual Percentage Rate (APR) each lender offers

  • The term each lender lets you borrow over

When you have a shortlist of lenders, you can work out which small business financing will be the cheapest for your business.

What will your business loan cost?

The amount you pay will depend on:

  • The amount you borrow

  • The term you choose to repay the loan

  • The APR you get when you apply

You will get a fixed APR for the duration of the loan after going through a credit check as part of your small business loan application.

The higher the APR, the more interest you pay. Look for the lowest possible APR for the amount you want to borrow to cut the amount of interest you need to pay.

Some lenders have loan calculators on their site to give you an idea of a loan repayment.

Can you get a start up loan for a small business?

Yes, but if you need small business funding for a start up you may need to apply for a start up business loan instead.

This loan type helps companies with limited trading experience apply for cash.

Small business loans FAQs

Q

What is the representative APR?

A

The representative APR is the rate a lender must offer at least 51% of applicants, which means you are not guaranteed to get the rate shown.

Q

How small does my business need to be to get a loan?

A

It depends on the lender. Each small business lender will specify the size your business needs to be before you can apply.

Q

Can a small business loan affect my credit record?

A

If you cannot repay your loan, it could negatively affect yours or your business' credit profile and prevent you from borrowing again in the future.

Q

Will I still pay interest if I do not use the loan money?

A

A loan charges you interest whether you use the money or not, so only apply for small business financing if you need the cash.

About our small business loans comparison

Q

Who do we include in this comparison?

A

We include loans available for businesses with an annual turnover less than 1 million, directly from lenders and through brokers on our panel. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

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.