Grow your business with with Nucleus Cash Flow Finance

- Borrow £25,000 to £150,000
- Apply online in 2 minutes
- Funding in 24 hours
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”.
When it comes to borrowing a lump sum upfront for your business, options include (but aren’t limited to):
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.
6% p.a. interest | 12% p.a. interest | 20% 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 |
6% p.a. interest | 12% p.a. interest | 20% 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 |
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.
Earn Avios or cashback on all your business spending with this business Visa from challenger Capital on Tap.
Saving time on expense reports and streamlining your cash flow are just a couple of the many perks you could enjoy with a business credit card. Compare interest rates and check your eligibility today.
Learn more about bridging loan companies that operate in the UK.
Use our online calculator to find out how much life insurance you need based on your own personal circumstances.
Learn how you can find the best bridging loan for your circumstances and discover more about the major UK lenders who offer them.
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £150,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
Wondering what to do with £50k that has just dropped into your lap? Read our guide for some thoughts on how to spend it well.
If you’re under 55 and can’t access products such as lifetime mortgages and home reversion plans, read our in-depth guide on ways to release equity from your home.