More from business loans
Last updated: 15 February, 2021
Small business loans are exactly what they sound like - they're cash loans for small businesses.
As with any kind of loan, to get one of these small business loans, you'll have to meet the lender's criteria. This varies between lenders, but typically your business must not employ more than 50 people, or have an annual turnover of more than £150,000.
You can use small business loans for most business expenses, including:
Rent for your work premises
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.
If you need a cash injection for your small business, you might be looking into how to get a small business loan. It's not hard to apply and is quick to do online. It doesn't take long to get the money put into your business bank account either.
Remember that to apply for any small business loans, you don't need a large turnover. You also don't need to have been up and running for a specific amount of time.
Before you can compare the cost of small business loans, you need to check:
That lenders can offer the loan amount you need
What is the representative Annual Percentage Rate (APR) that each lender offers
The term each lender lets you borrow over (so, how long it'll take to pay it back).
When you've got a shortlist of lenders, you can work out which small business loans will be the cheapest and most suitable for your business.
It doesn't matter what kind of small business you have, it shouldn't affect your chances of getting a small business loan.
Here are some examples of what you could get:
small home business loans
pub business loans
retail business loans
loans for beauty salons/salon business loans
and loans for all kinds of other businesses.
It can be a helpful way to boost your cashflow, grow your business or manage a period of uncertainty.
The amount you pay for small business loans depends on several factors. These include:
The amount you borrow
The term you choose to repay the loan
The APR you get when you apply.
You'll get a fixed APR for the duration of your small business loan. This'll be confirmed you go through a credit check as part of your small business loan application.
The higher the APR, the more interest you'll pay. Look at a range of small business loans to find the lowest possible APR for the amount you want to borrow. This'll cut the amount of interest you need to pay.
Some lenders have loan calculators on their site to give you an idea of your loan repayments.
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.
The government has introduced financial support for businesses as a result of the pandemic. These include:
Bounce Back Loan Scheme. This allows smaller businesses to borrow £2,000-£50,000, interest free for the first 12 months. These loans are 100% government-backed. You can find out more about the Bounce Back Loan Scheme here.
Coronavirus Business Interruption Loan Scheme - This allows larger businesses to borrow from £50,001 up to £5 million. These loans are 80% government-backed. You can read more about the Coronavirus Business Interruption Loan Scheme here.
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.
It depends on the lender. Each small business lender will specify the size your business needs to be before you can apply.
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.
A loan charges you interest whether you use the money or not, so only apply for small business financing if you need the cash.
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.
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.
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.