Grow your company with a £100,000 business loan

Not many SMEs have £100,000 lying around. If you have the opportunity to grow your business, borrowing £100,000 could be your solution.


Fact checked

Coronavirus business loan options

Businesses looking to borrow £100,000 during the current pandemic can do so by using the Coronavirus Business Interruption Loan Scheme (CBILS). In order to apply for a CBILS loan, you’ll need to contact one of the accredited CBILS lenders, but will benefit from the favourable terms offered under the scheme.

£100,000 is no small sum, and it can make a huge difference to a growing business. There are a few different ways your company can get its hands on funding, and 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.

It’s worth noting that you’ll most likely be expected to provide security in some form – for example using a business or personal asset as collateral. Much like a mortgage, if you fail to repay the loan, the lender can sell the asset to recoup losses. Security mitigates some of the risk for a lender, which can mean better rates.

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.

Did you know?

In 2018 Barclays doubled its limit on unsecured lending for SMEs to a cool £100,000. But expect getting approved without security to require excellent credit, detailed affordability checks and an extremely healthy growth curve from a well-established base.

Lenders may ask for a personal guarantee – which is where one or more directors make a legal promise to be personally responsible for a loan, in the event that the business fails to repay. Under this sort of agreement, you’ll be putting your personal finances on the line, but many lenders will insist on it.

Learn more about personal guarantees.

Funding Xchange

Check your eligibility for Coronavirus Business Interruption and Bounce Back Loans

  • Apply online in as little as 3 minutes
  • Check your eligibility for government backed schemes & other finance
  • Simple, safe and free with no effect on your credit rating

What are your options?

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

  • A standard business loan. You’ll have a lump sum transferred into your bank account and make monthly repayments on the balance. The interest rate can be fixed or variable.
  • 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.
  • 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.

If you’re looking for ongoing 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 can be higher. Your credit limit will be determined by the lender’s assessment of your situation – including a credit search.

While the rates might be higher than those associated with a more traditional business loan, there’s usually much more flexibility.

£100,000 loan illustrations

Interest rate of 5% fixed p.a.Interest rate of 10% fixed p.a.Interest rate of 15% fixed p.a.
3 year loanMonthly: £2,997.09
Overall: £107,895.23
Monthly: £3,226.72
Overall: £116,161.87
Monthly: £3,466.53
Overall: £124,795.18
5 year loanMonthly: £1,887.12
Overall: £113,227.40
Monthly: £2,124.70
Overall: £127,482.27
Monthly: £2,378.99
Overall: £142,739.58
8 year loanMonthly: £1,265.99
Overall: £121,535.23
Monthly: £1,517.42
Overall: £145,671.98
Monthly: £1,794.54
Overall: £172,275.89

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.

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.

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site