£100,000 business loans

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Name	Product	Loan type	Loan terms	Turnover/trading criteria
iwoca Flexi-Loan		Variable rate unsecured loan	1 month to 12 months	No specified minimum turnover or time trading	Representative example: Borrow £10,000 over 12 months at a rate of 40% p.a. (variable). Representative APR 49% and total payable £12,294.	Get quotes View details		loading Fetching your data...
Funding Circle Unsecured Business Loan		Fixed rate unsecured peer-to-peer loan	6 months to 5 years	No specified minimum turnover, minimum 2 years trading	Get quotes View details		loading Fetching your data...
Fleximize Unsecured Business Loan		Fixed rate unsecured loan	3 months to 3 years	£60,000 minimum turnover, minimum 6 months trading	Representative example for loans of £25,000 or below: Borrow £12,500 over 15 months with an interest rate of 36.4% p.a. (fixed). Representative APR 43.1% and total payable £15,740.33 in monthly repayments of £1,049.36.	Get quotes View details		loading Fetching your data...
Royal Bank of Scotland Fixed Rate Large Business Loan		Fixed rate loan	3, 5, 7 or 10 years	No specified minimum turnover or time trading	View details		loading Fetching your data...
NatWest Fixed Rate Large Business Loan		Fixed rate loan	3, 5, 7 or 10 years	No specified minimum turnover or time trading	View details		loading Fetching your data...
Esme Business Loan		Fixed rate unsecured loan	1 year to 5 years	£50,000 minimum turnover, minimum 3 years trading	Representative example: Borrow £50,000 over 24 months at a rate of 8.40% p.a. (fixed). Representative APR 8.73% and total payable £54,491.93 in monthly repayments of £2,270.5.	View details		loading Fetching your data...
Nucleus Cash Flow Finance		Fixed rate unsecured loan	3 months to 5 years	No specified minimum turnover, minimum 3 years trading	View details		loading Fetching your data...
MarketFinance Small Business Loan		Fixed rate unsecured peer-to-peer loan	6 months to 3 years	£50,000 minimum turnover, minimum 2 years trading	View details		loading Fetching your data...
Spotcap Short Term Loan		Fixed rate unsecured loan	1 month to 24 months	£500,000 minimum turnover, minimum 3 years trading	Representative example: Borrow £100,000 over 12 months with an average monthly interest rate of 1.4% and a 2.0% arrangement fee. Representative APR 22.8% and total payable £109,332 in monthly repayments of £9,111.	View details		loading Fetching your data...

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Will I need to provide security for a £100,000 loan?

Although £100,000 might not be enormous by commercial finance standards, it’s enough that almost all lenders will want something to secure the loan against. That could be a business or personal asset – for example equipment, invoices or a property. If the company fails to repay the loan, the lender can claim the asset to recoup losses.

Realistically, secured loans take a little longer to fund, because the lender will need to verify the value of the asset that you put forward. Although it can all sound a bit heavy and inconvenient, security mitigates some of the risk for a lender, which in turn means better rates or access to larger sums for the borrower.

In 2018 (before Covid struck), Barclays doubled its limit on unsecured lending for SME clients to a cool £100,000. However there are numerous exemptions (including whole industries).

Getting approved without security is likely to be unrealistic for most companies. It’ll require excellent credit, detailed affordability checks and an extremely healthy growth curve from a well-established base. A personal guarantee is also a likely requirement – that’s when a director takes personal responsibility for a loan, meaning that they commit to repaying the loan even personally in the event that the business can’t.

Learn more about personal guarantees

But there are a few different ways your company can get its hands on £100,000 of funding. Since the cost of borrowing will be significant, it’s worth looking at which option might best suit your unique situation. This guide will help you understand some of the popular options available.

What are your options?

When it comes to borrowing a lump sum upfront for your business, options include (but aren’t limited to):

• A government-backed CBILS loan. If your business’s cashflow has been disrupted by the pandemic, you can check your eligibility for finance under the Coronavirus Business Interruption Loan Scheme (CBILS). Available through more than 100 accredited lenders, the government guarantees 80% of each loan. You’re still responsible for the full loan, but it’s easier to get approved thanks to that government backing.
  Check your eligibility for CBILS and BBLS finance
• A Start Up loan. If your business has been trading for less than 2 years, up to four partners can each apply for a loan of up to £25,000 – meaning a potential maximum of £100,000 per business. Start Up loans are unsecured and the interest rate is fixed at 6%.
  Check your eligibility for a Start Up loan
• A standard business loan. Straightforward, traditional business loans are available form both high street banks and online specialist lenders alike. You’ll have a lump sum transferred into your bank account and make monthly repayments on the balance. The interest rate will usually be fixed (meaning a fixed monthly repayment amount and a set loan term) but can be variable (in which case it’s likely to rise or fall in line with the Bank of England base rate).
  Check your eligibility for a business loan
• Asset finance. With asset finance, you can spread the cost of assets for your business over a longer period. It’s more expensive than paying outright, but it could be a good way of accessing the latest equipment without a huge initial outlay. The assets can be repossessed if you stop making repayments.
  Check your eligibility for asset finance
• A business cash advance. Not sure when you’ll be able to pay back your loan because of fluctuating sales? A business cash advance could be a solution. With this form of business credit, you’ll agree to a fixed fee upon taking out the loan. Then, you’ll pay back a fixed percentage of every transaction until your debt is cleared. If business is booming, you’ll clear your debt faster, and if business is slow, it’ll take longer. Either way, it’ll cost the same amount.
  Full guide to business cash advances
• A business line of credit. If you’re looking for ongoing, flexible access to business credit, you could consider a business line of credit. These work in a similar way to a credit card or overdraft. You’ll only pay interest on the amount you need, when you need it, and the facility remains “open” even after you’ve cleared your outstanding balance. But the credit limits are typically higher. Your credit limit will be determined by the lender’s assessment of your situation – including a credit search.
  How a business line of credit works

What about a broker or matching service?

Brokers and matching services come with some handy advantages – not least the “hand-holding” element that’s so useful when navigating a tricky subject like business finance.

A good matching service will be able to instantly check which lenders would offer you a £100,000 loan, saving you valuable time and stopping you from damaging your credit score via multiple loan applications.

Brokers and matching services will usually get a referral fee from the lender you end up taking out a loan with, so the service doesn’t have to cost your firm a penny.

The downside? These services rarely have access to the full market, but will instead refer you to lenders from their panel of partners. That means you may not be offered the very best deal you’re eligible for.

Check your eligibility with a range of lenders in minutes

• Apply online within 5 minutes
• Includes government-backed schemes and other finance
• Free and simple quotes with no effect on your credit score

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How much are payments on a £100,000 business loan?

How much does a £100,000 business loan cost overall?

Frequently asked questions

• How hard is it to get a £100,000 business loan?

  How hard it is to be approved for a £10,000 business loan will come down to factors such as the nature of the business, how long it’s been trading, its annual turnover, the credit score of the business and applicant, the purpose of the loan plus the business’s growth strategy. A £100,000 business loan is extremely likely to need to be secured against an asset (equipment or property) – in which case the value and liquidity of that asset will also come into play.

  Typical minimum eligibility criteria include the applicant being at least 18, a UK resident and a director in the business, and the business being UK based.

• Can start-ups be approved for a £100,000 business loan?

  Realistically, it can be a tall order, with many lenders stipulating that you must have been trading for a certain number of years and/or you must turn over at least a specific amount annually. Conversely, however, the Start Up Loans Company (which is government-backed) will only lend to you if you’ve been trading for less than 2 years (and doesn’t stipulate a minimum turnover). Although the loans are capped at £25,000, up to four directors can apply. There are other lenders which specialise in providing finance for start-ups, although to borrow £100,000 you’re likely to need to provide security.

• What can business loans be used for?

  Your lender will ask what you’re planning to spend the loan on and look for proof that you’ll be able to comfortably repay it. If they’re convinced you’ll be able to repay the loan, lenders tend to be relatively open-minded about what you spend it on. Standard “no-no’s” include borrowing to fund a deposit on an even larger loan, borrowing to fund an investment that’s unrelated to the business and, of course, criminal activities (who’d have thought it).