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Business Loans

A business loan can be used to help start-ups and small businesses get off the ground. You may need to show a good track record to qualify for certain loans.

A business loan is designed for commercial use, either to expand existing operations or get a brand new business off the ground. Depending on the kind of loan you choose, you’ll often need to demonstrate a strong case for borrowing the money or present an in-depth business plan before receiving funds.
  • A broad range of secured and unsecured loans is available

  • Grow your business or launch a new one using the proceeds

  • Having a clear plan for where the money will go may help your chances

  • Only borrow what you can afford, think about the bigger picture

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What is a business loan?

A business loan provides you with the funding needed to help your enterprise prosper. There are many different kinds of business loan available, usually differentiated by the length of loan and the interest rates charged, as well as what the money is to be used for.

You can choose to apply for a business loan with your own assets as security, or put up an asset owned by the business, such as property or equipment. A secured loan can provide comparably lower interest rates than an unsecured loan, as the lender will view the arrangement as lower-risk.

How does a business loan work?

If you’re successful in applying for a business loan, you’ll typically receive the funds within a week or two and can start to spend on the things outlined in your application. You’ll then repay the loan at the agreed rate each month until the debt is settled. You may be able to pay off your debt early, but it’s important to understand the terms of your agreement, as doing so could lead to an added fee.

Commonly asked questions about business loans

For more information about business loans, check our list of questions customers often ask below:

Is a business loan right for me?

If you are a start-up, entrepreneur or small business owner in the UK, a business loan could help to grow your business. Compared to other types of credit, such as personal loans or credit cards, business loans offer a great deal of flexibility.

Whether you are a sole trader or a limited company, a start-up or franchise, a business loan could suit your credit requirements.

Will a business loan affect my credit score?

A typical business loan may not require a check on your personal credit rating, if the loan can be applied for through an established business with a proven track record, so it is still possible to obtain the funds your business needs without impacting on your personal credit score.

It’s essential to choose a product that is right for you, as if you do not keep up the repayments on a secured business loan, your home could be at risk.

What do I need to apply for a business loan?

You can begin applying for a business loan with us online. First, you just need to enter a few simple details, including:

Once we receive this information, we will contact you to discuss your requirements in more detail. It’s a good idea to have information to hand regarding what you need the loan for, and, if you are taking out a loan to consolidate company debts, details of the other loans too.

Further discussions around your loan application are likely to focus on your company, and things like:

It’s important that you are planning to borrow what you can afford, so it helps to give prospective lenders as much background as you can in advance of a loan decision.

Business loan details

Can I pay off a business loan early?

You can pay off a loan early; however, there may be an early repayment fee. This will allow for a substantial rebate of interest that would have been paid had the loan reached the end of its agreed term. This could make early repayment an attractive option, but it’s always best to make sure you understand the terms and conditions of the loan and are confident you can repay it.

Applying for a business loan

Our dedicated Commercial and Business Loan specialists are here to help you navigate the application process, compare rates and work out how to get a loan to meet your needs. Use our business loans calculator to decide the amount and work out repayment rates.

What kinds of businesses are eligible for a business loan?

We can help any type of business to secure the financial support it needs. Here are just a few examples:

Healthcare

Doctors, dentists and healthcare professionals might use a business loan to grow their customer base. This could be by investing in CRM (Customer Relationship Management) software to manage patient files more effectively, or market research to track feedback, improve customer service and increase the level of interaction with patients. Whatever the aim, a business loan could help build a greater reputation, attract more patients and ultimately become more profitable.

Retail and freelance

The UK has a burgeoning population of self-starters and small retailers, who are increasingly harnessing the power of digital media to market their goods and services. A business loan could help fund a professional digital marketing and social media management to keep them one step ahead of the competition.

Catering and hospitality

With the help of a business loan, restaurants, cafes and hotels could transform their services from shabby to chic, improving their appeal. Businesses could use the loan to invest in advertising to get their voice heard, or improve their accommodation or facilities. This, in turn, could help to boost bookings, increase capacity and stave off hungry competitors.

What can I use a business loan for?

There are many ways you might want to use a business loan - whether starting from scratch as a sole trader, to expanding your payroll.

People

Taking on new staff

Pick up some people power to expand your company.
Building

Opening new premises

If you have outgrown your office space or your workplace is in desperate need of a refurb.
Van

Expanding your vehicle fleet

If you need new wheels for your business, a loan could help you get things moving.
Computer

New equipment

Invest in the latest technology to help your business run more efficiently.

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