£100,000 business loans

Boost your SME by borrowing £100,000 – here are your options.

Tide Start-up Loan

Tide Start-up Loan

  • £500 to £100,000
  • 12 to 60 months
  • Cashflow forecasting through Tide Connect
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Comparison of lenders

Name Product Loan type Loan amounts Turnover/trading criteria
MyCashline Business Loans
loan
£5,000 to £100,000
No specified minimum turnover or time trading
Barclays Secured and Unsecured Business Loans
Fixed or variable rate loans
£1,000 to £5,000,000
No specified minimum turnover or time trading
Representative Example: 10.40% APR representative based on a loan of £25,000 repayable over 60 months at an interest rate of 10.40% pa (fixed). Monthly repayment of £536.11. Total amount payable of £32,166.59.
Love Finance business loan
Fixed rate line of credit loan
£5,000 to £250,000
£50,000 minimum turnover,
minimum 3 months trading
Representative example: Borrow £25,000 over 5 years at a rate of 19.40% p.a. (fixed). Representative APR 19.40% and total payable £ 38,395.20 in monthly repayments of £639.92.
Tide Start-up Loan
Fixed rate loan
£500 to £100,000
No specified minimum turnover,
maximum 36 months trading
6% APR representative (fixed).
Cubefunder Flexible Business Loans
Fixed rate loan
£5,000 to £100,000
£4,000 minimum turnover,
minimum 3 months trading
Fixed cost of credit.
Royal Bank of Scotland Fixed Rate Large Business Loan
Fixed rate loan
£25,001 to £10,000,000
No specified minimum turnover or time trading
NatWest Fixed Rate Large Business Loan
Fixed rate loan
£25,001 to £10,000,000
No specified minimum turnover or time trading
Borrow £10,000 over 5 years at a rate of 9.9% pa (fixed). Representative APR 10.36% and total payable £12,718.72 in monthly repayments of £211.98 Subject to status, business use only.
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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.

When asked by Barclays what they would do with a £100,000 business loan, more than a third of SMEs that responded stated “Purchase new equipment or machinery”, which was closely followed by “Improve or increase branding/marketing”.

What are your options?

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

  • 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.
  • 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.

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.

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

6% p.a. interest12% p.a. interest20% p.a. interest
5-year term£1,933£2,224£2,649
10-year term£1,110£1,435£1,933
15-year term£843£1,200£1,756

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

6% p.a. interest12% p.a. interest20% p.a. interest
5-year term£115,997£133,467£158,963
10-year term£133,225£172,165£231,907
15-year term£151,894£216,030£316,133

£100,000 business loan calculator

This tool is designed to help you estimate the monthly and overall costs of borrowing £100,000. You can adjust the duration of the loan and the interest rate to get a better idea of what would be affordable. Our calculations assume that any fees involved are bundled in with the loan amount and repaid over the same term, at the same rate. Refer to your loan agreement for exact repayment amounts as they may vary from our calculations.
Interest rate


Loan term


Fees


Your loan would cost around £ each month and £ overall.

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