Whether you’re after a lump sum of £30,000 or consistent access to credit for slowly growing your business, there’s a range of loan options that could help. Here, we run through your best choices.
If you’re looking for a lump sum to be paid upfront, options include:
If you’re looking for ongoing access to business credit, consider the following options:
Government-backed start-up loans are available to certain businesses that have been trading for less than two years, and are capped at £25,000. However, this figure is per director, and multiple directors can apply. With competitive, fixed rates, these loans can be a smart choice, provided your business is eligible.
Access a lump sum of funding upfront for a fixed cost and then repay when your customers pay you.
Boost your spending power, track employee spending and enjoy perks and rewards with a business credit card.
Secured loans allow you to put business or personal assets up as collateral against failure to repay your loan. This can make a lender more open to approving your loan application, as it’s better protected against the risk of you falling into arrears.
It’s not unusual for lenders to insist on having security for sums as large as £30,000, especially for businesses or individuals with limited or damaged credit histories.
Getting an unsecured loan is usually faster because the lender won’t need to verify the value and liquidity of any asset(s) put forward as security.
Learn more about secured vs unsecured business loans.
A personal guarantee is a contract that states you’ll be personally responsible for paying back a loan if your business is unable to do so. Many lenders will demand you sign one of these if you apply for an unsecured loan.
Learn more about personal guarantees.
| Interest rate of 5% fixed p.a. | Interest rate of 10% fixed p.a. | Interest rate of 20% fixed p.a. | |
|---|---|---|---|
| 2 year loan | Monthly: £877.43 Overall: £21,058.27 | Monthly: £922.90 Overall: £22,149.56 | Monthly: £1,017.92 Overall: £24,429.99 |
| 3 year loan | Monthly: £599.42 Overall: £21,579.05 | Monthly: £645.34 Overall: £23,232.37 | Monthly: £743.27 Overall: £26,757.78 |
| 5 year loan | Monthly: £377.42 Overall: £22,645.48 | Monthly: £424.94 Overall: £25,496.45 | Monthly: £529.88 Overall: £31,792.66 |
Here are some of the key factors to consider:
Lenders each have their own criteria, but first and foremost they’ll need to be sure that the monthly repayments would be affordable for your business, given its income and outgoings. You can boost your chances of being approved by demonstrating:
Brokers and matching services can be handy for time-pressed business owners, especially if their credit history is a bit worse for wear.
A good matching service will be able to instantly check which lenders would offer you a £30,000 loan, saving you valuable time and stopping you from damaging your credit score via multiple loan applications.
Many of these services are free to use, as the brokers instead charge a referral fee to the lenders they recommend.
The downside is that these services rarely have access to the full market. They’ll only be able to refer lenders from their panel of partners. That means you may not be offered the very best deal you’re eligible for.
You’ll find star ratings on some of our business loan provider reviews. Here’s how our business loan experts came up with them.
Discover and compare the various ways your company could access finance of £30,000 to unlock its next chapter of growth.
Learn about the different business finance products that could give your company access to £15,000.
Learn about the range of funding options available to help SMEs borrow £10,000 and explore which could be right for your company.
Learn about finance options that could give your business fast access to £5,000.
What’s working capital finance? How does it work? Which type is right for your business? Our guide unpacks them to help you navigate cash flow ups and downs.
There are a few different ways your company could get its hands on £100,000, and since the cost of borrowing will be significant, it’s worth comparing them.
Identified an opportunity to grow your business, but don’t have the cash lying around to take advantage of it? We’ll guide you through some of the ways your company could access £50,000.
Cashflows can be irregular and hard to predict. Access credit for your SME when you need it with a flexible line of credit.