Compare business loans
Table: sorted by loan terms, promoted deals first
More often than not, you need money in order to make money. A business loan can give a company the capital it needs to get off the ground or to get to the next stage of its evolution. That might require just a few thousand pounds or hundreds of thousands, for a couple of months or a couple of decades. There’s a range of lenders out there to cater to the full spectrum of what you need.
Companies usually apply for a business loan when they need to borrow cash or capital from a bank. The amount is repaid with interest and fees may apply. Government-backed start-up loans are also available to those eligible.
Compare alternative business financing
Table: sorted by APR, promoted deals first
How to choose the best business loan
Here are some of the key features to consider when comparing business loans:
- Amounts available. Having set out your business plan, you should know how much you need to borrow, and one of the first things to look at when evaluating a loan is whether or not it can offer you the sum that you need.
- Terms available. You may have a fairly clear idea of the length of time you want or need to borrow for, or this factor may be dictated by the size of the monthly instalments.
- Eligibility. Never apply for a loan without checking that the business is eligible for it. It’s a waste of time and demoralising – and the rejection could be visible to future prospective lenders.
- Security required. It’s not unusual for lenders to ask for a personal guarantee – meaning an individual will be personally responsible for the loan. Security can also take the form of a company’s realisable assets, such as a property, vehicles or equipment. Where no assets are available, it may be necessary to secure the loan on a director’s own property.
- Total costs. It can be easy to obsess over APRs (rates), but perhaps more importantly, consider how much the loan is going to cost overall. When you’re trying to identify the best business loan, the loans that are cheapest overall are naturally a good place to start.
- Interest rates. Is the rate offered variable or fixed? Is it competitive?
- Fees. Look out for “product” or “set-up” fees as well as any annual/monthly account charges. Lenders sometimes offset an attention-grabbing low rate with product fees, so it’s crucial to also keep an eye on the total amount payable.
- Repayment holidays. Repayment holidays are set periods when you don’t have to make any repayments. This might be, say, the first three months of a loan. This can give your company an opportunity to get back on its feet financially, but will usually extend the term of the loan by the same number of months, pushing up the overall cost of the loan.
- Early repayment terms. It’s hard to predict what’s around the corner, let alone three or four years down the line. If the option to repay early is important to you, you’ll need to check the early repayment (or overpayment) terms of the specific product or products you’re considering. It’s important to note that “No early repayment fees!” does not necessarily mean that repaying early will save you money on interest.
Ready to compare lenders?
Get startedFrequently asked questions
More guides on Finder
-
interactive investor (ii) vs Vanguard
Vanguard and interactive investor (ii) are both investment platforms with a lot to offer. We compare their features, fees, account types and more – side by side in interactive investor (ii) vs Vanguard UK.
-
Opening a business bank account with an IVA
We explore your options for opening a business bank account with an IVA.
-
Moneybox vs Vanguard
Vanguard and Moneybox are both investment platforms with a lot to offer. We compare their fees, features, account types and more – side by side in Moneybox vs Vanguard.
-
Vanguard vs Hargreaves Lansdown (HL)
Vanguard and Hargreaves Lansdown (HL) are both investment platforms with a lot to offer. We compare their fees, features, account types and more – side by side in Hargreaves Lansdown vs Vanguard UK.
-
Virgin Money Everyday Cashback Credit Card review
Enjoy 0.5% cashback on your purchases with Virgin Money’s Everyday Cashback credit card, along with no foreign exchange fees and no annual fees.
-
Plum app promo, discount and referral codes for October 2024
New to Plum? See if you can keep some more money in your pocket with our promo codes and special offers.
-
Moneyfarm vs Vanguard
Moneyfarm and Vanguard are both investment platforms with a lot to offer. We compare their fees, features, account types and more – side by side in Vanguard vs Moneyfarm.
-
Almost all banks rule out guaranteed full refunds for APP fraud losses
New research reveals which banks have decided to definitely cover the first £100 of any authorised push payment fraud.
-
InvestEngine vs Vanguard
Vanguard and InvestEngine are both investment platforms with a lot to offer. We compare their features, fees, account types and more – side by side in InvestEngine vs Vanguard.
-
Sidekick review: A banking app that wants to empower you to grow your wealth
Sidekick is a money management app with the aim of unlocking investment opportunities for everyone that are usually reserved for the ultrawealthy.
Thanks ….very good