Compare £10,000 business loans for December 2019

Need £10,000 to develop your business? Here are your options.

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Business finance comes in a variety of shapes and forms, and which is best for your company will depend on a range of factors. You might want a lump sum upfront, or you may simply be looking for the financial breathing room to focus on growth. This guide unpacks popular business finance products to help you home-in on the right finance for your company.

Think Business Loans

Find the best funding options for your business

Finder has teamed up with Think Business Loans to help SMEs quickly and easily find a competitive business financing solution that works for them.

  • Match your eligibility in minutes with no credit check
  • One simple form to compare 200+ lenders
  • Receive your funds the same day with no hidden fees
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How can we help?

Textile studio in a small business

Compare loan rates

Get live, personalised quotes on unsecured or secured loans from a large panel of lenders through our partner Think Business Loans.

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Restaurant worker taking card payment from a customer over counter

Merchant cash advances

Access a lump-sum of funding upfront for a fixed cost and then repay when your customers pay you.

Learn more

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Business credit cards

Boost your spending power, track employee spending and enjoy perks and rewards with a business credit card.

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What business finance products could give me access to £10,000?

  • A startup loan. Government-backed loans of £10,000 with fixed rates are available for startups that have been trading for less than 2 years and even come with free mentoring.
  • A standard, fixed-term business loan. With a traditional business loan option, you’ll have £10,000 transferred directly into your bank account then make monthly repayments for a set period.
  • A business cash advance. With a business cash advance or merchant cash advance, you’ll pay a fixed fee upon taking out the loan, then pay back a percentage of each sale until your debt is cleared. That means you won’t need to worry too much about sales falling: if business is booming, you’ll clear your debt faster, but if business is slow, it’ll take longer. Whatever happens, it’ll cost the same amount.
  • Asset finance. Asset finance allows you to spread the cost of laptops, cameras or other assets for your business over a longer period. On the downside, you’ll pay more overall and assets can be repossessed if you fall behind on repayments. On the upside, it means you can give your team the best gear now, rather than waiting until you can buy it outright. Asset refinance is a similar type of finance, that, as the name suggests, lets you unlock the capital tied up in assets you already own.

If you’re looking for ongoing access to business credit, consider the following options:

  • Invoice finance. Invoice finance products fall into two main categories: with “invoice discounting” the lender uses your unpaid invoices as collateral for your loan. With “invoice factoring”, the lender buys your unpaid invoices from you (at less than their full value).

If you need the lump sum upfront, but still like the idea of ongoing, flexible credit, consider these options:

  • A business credit card. With a business credit card, you’ll be able to make purchases and overspend by your agreed credit limit. You’ll be charged interest if you don’t repay your balance in full each month.
  • A business overdraft is a flexible line of credit available through your business bank account. However, the interest rates on overdrafts (even authorised ones) tend to be relatively high and the limits relatively low.
  • A business line of credit. This works similarly to a credit card or overdraft, as you’ll only pay interest on the amount borrowed. It can be easier to get a credit limit of £10,000 or higher with this option.

Capital on Tap Business Loan

Business funding for the real world

With Capital on Tap you get enhanced flexibility: Top up your loan or repay early at any time with no additional costs. You'll only pay interest for each day you have the funds.

  • Loans up to £50,000
  • Flexible repayment options
  • No monthly or annual fees

Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).

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What if I have bad credit?

Many of these products are available for businesses with bad credit, especially for relatively lower amounts such as £10,000. Bad credit finance products tend to have higher interest rates attached, especially those that are unsecured.

Business loans for bad credit

Borrowing options at a glance

Type of finance Security Repayment terms Good for Bad for
Business credit cards Revolving Unsecured Flexible – no interest charged if you pay monthly
  • Improving your monthly cash flow
  • Cheap borrowing if you pay on time
  • Long-term borrowing
Overdrafts Revolving Unsecured Flexible – but the longer you borrow the more you’ll pay
  • One-off, unexpected and small expenses
  • Businesses with good credit history
  • Borrowing high amounts for a long time
Business line of credit Revolving Secured or unsecured Flexible – but the longer you borrow the more you’ll pay
  • Improving your cash flow
  • Only borrowing as much as you need
  • Long-term borrowing
Invoice financing One-off Secured against your invoices Short-to-medium terms – tied to invoice payments
  • Improving your cash flow
  • Businesses with not-so-great credit scores
  • Long-term borrowing
Merchant cash advances One-off Unsecured Short-to-medium terms – tied to credit card takings
  • Businesses with unpredictable incomes
  • Businesses with not-so-great credit scores
  • Businesses that don’t take many card payments
Asset financing One-off Secured against business assets Medium-to-long terms – usually to repay in monthly instalments
  • Purchasing equipment
  • Using assets as collateral to grow the business
  • Flexible borrowing
Short-term business loans One-off Unsecured Short terms – usually to repay in monthly instalments
  • Reacting to an unexpected event
  • Grabbing an unexpected opportunity
  • Long-term borrowing
  • Improving cash flow
Business loans One-off Secured or unsecured Long terms – usually to repay in monthly instalments
  • Long-term projects
  • Growing your business
  • Flexible borrowing
  • Improving cash flow

£10,000 loan illustrations

Interest rate of 5% fixed p.a. Interest rate of 10% fixed p.a. Interest rate of 20% fixed p.a.
1-year loan Monthly: £856.07
Overall: £10,272.90
Monthly: £879.16
Overall: £10549.91
Monthly: £926.35
Overall: £11,116.14
2-year loan Monthly: £438.71
Overall: £10,529.13
Monthly: £461.65
Overall: £11,074.78
Monthly: £508.96
Overall: £12,214.99
3-year loan Monthly: £299.71
Overall: £10,789.52
Monthly: £322.67
Overall: £11,616.19
Monthly: £371.64
Overall: £13,378.89

What about a broker/matching service?

These services will show you which lenders would approve you for a £10,000 loan, saving time and preventing credit score damage from multiple failed loan applications.

Many broker/matching services are free, as they make their money by charging referral fees to lenders. However, it’s rare that they have access to the whole market, so you may not be recommended the best available deal.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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