Business loans

What is a business loan?

Access the funding you need to help your company prosper. There are many different types of business loan, depending on:

• the amount you want to borrow
• the length of time you want to repay the loan
• the interest rate you’re looking for
• the reason for your borrowing.

You may be offered one of the following types of loan:

• Secured. These typically offer lower interest rates than an unsecured loan, and are secured against assets, either personal or company owned.
• Unsecured. They offer higher interest rates but are not typically secured against an asset.

How does a business loan work?

To apply for a loan, you must start with the purpose. Lenders will want to know what you plan to spend the money on, how it will impact your business plan, and the expected results.

If you’re successful in applying for a business loan, you’ll typically receive the funds within a week or two. You’ll then repay the loan, including accrued interest, at the agreed rate each month, until the debt is settled.

You may also be able to pay off your loan early, but there could be a charge for doing so. Check the terms of any loan you’re offered to find out more about the cost of early repayment.

Get started by selecting the loan amount and length of time you wish to apply for on our business loan repayment calculator at the top of the page.

Things to consider before you apply for a business loan

Before you apply for a loan for your business, there are a few things you may want to consider.

Is this the right loan for me and my business?

A loan can help your business take its first steps, turning your creative spark into a successful venture, or helping a growing company to scale up with demand. Compared to other types of credit, such as personal loans or credit cards, business loans can offer more flexibility.

If you can show a lender your business is brimming with potential, and you can afford to repay the loan, you’re already on the right track.

Read our guide to financing a new business to find out more about accessing funds.

Regular income and outgoings

A lender will ask about your income and regular outgoings to help them assess your personal circumstances. This helps them decide whether you’re a suitable applicant.

Your credit history

Lenders look at your credit report to help them assess whether you will be able to keep up with repayments and loan terms. You don’t need a perfect credit score to get a rate you’re happy with, but lenders will usually want to check your general situation – including any CCJs - before they decide.

The purpose of your loan

How you plan to spend the money you’re applying for is the basis of your loan application. Lenders will be keen to see proposals, pitches, and plans for your investment so they can get a better understanding of how the money will help your business grow.

See our guide to business loans for more information.

Representative example

SECURED LOANS Rates from 6.7% variable. We also have plans ranging up to rates of 65.2%. Our range of available plans and products means we’re well placed to help you find a loan that meets your needs.

Representative 8.6% APRC variable.

Representative example: If you were to borrow £10,000 over 10 years at an Annual Interest Rate of 5.14% (variable), it would mean you make 120 payments of £122.71 per month.

The total amount repayable will be £14,725.20 (This includes a lender fee of £495 and a broker fee of £1,000 which have been added to the loan.) The overall cost for comparison is 8.6% APRC representative. Maximum APR is 65.2%.

Commonly asked questions about business loans

For more information about business loans, check out our list of frequently asked questions:

Will a business loan affect my credit score?

Submitting a loan application through a broker like Norton Finance may not require a check on your personal credit rating. If you apply through an established business with a proven track record, it might be possible to obtain the funds you want without impacting your personal credit score.

What do I need to apply for a business loan?

Applying for a loan online is easy with Norton Finance. All you need to get started are a few simple details, including:

• Name and address
• Details of your earnings and staff on payroll (if applicable)

Once we receive this information, we’ll contact you to discuss your business loan requirements in more detail. It’s a good idea to have information to hand regarding what you need the loan for, as well as details of any other loans you have.

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

• Profitability and turnover
• Trading history
• Loan amount as a proportion of turnover
• Payment history

Provide prospective lenders with as much information about your company as possible, as this will help aid their decision. If you give thorough background information, your lender will be more confident that the amount you are borrowing can be comfortably repaid.

Business loan details

How much can I borrow?
With a loan from Norton Finance, you may be eligible to borrow between £3,000 and £500,000, depending on your circumstances.

How long are the repayment terms?
Our repayment terms can be anything from one to 30 years, depending on how much you want to borrow, and what you can afford to repay.

What are the interest rates?
The rate of interest will vary based on your current circumstances and financial history. Loan interest rates for business owners start from 6.7%.

Are there any loan fees?
As we help you find the ideal loan for your business, we receive commission from the lender after a loan application has been completed. We may also charge a broker fee of up to 12.5% on any secured loan amount borrowed. There are no broker fees on unsecured loans.

Can I pay off a loan early?

You can pay off a loan early. However, there may be an early repayment fee for doing so. 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 business loan to meet your needs. You can use our business loan calculator to decide the amount and work out repayment rates.

What kinds of businesses are eligible?

We help companies across a wide range of sectors secure the financial support they’re looking for. Here are just a few examples:

Healthcare

Doctors, dentists, and healthcare professionals might use a 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 loan could help your healthcare business build a greater reputation, attract more patients, and ultimately become more profitable.

Retail and freelance

The UK has a booming 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 professional digital marketing and social media management to keep you one step ahead of the competition.

Catering and hospitality

With the help of a loan, restaurants, cafes, and hotels could transform their services from shabby to chic, improving their appeal. You could use the loan to invest in advertising to get your business’ voice heard or improve accommodation and facilities.