Compare the best business loans and financing of 2023
If you're self-employed, a sole trader or a freelancer, launch or grow your small business by comparing finance options from UK lenders.
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.
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Merchant cash advance
Access a lump sum of funding upfront for a fixed cost and then repay when your customers pay you.
Business credit cards
Boost your spending power, track employee spending and enjoy perks and rewards with a business credit card.
Business funding for the real world
- Up to 1% cashback or 1 Avios per pound spent
- Up to 10,000 bonus points when you spend £5,000 in 3 months
- Unlimited free company cards for employees and partners
- Up to 56 interest-free days on purchases each billing cycle
Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.15% APR (variable). Optional upgrade to Business Rewards (£99 per year).
How do business loans work?
There are different types of business loans that work in different ways. What type you opt for can depend on what stage your business is at, amongst other things.
Much like an individual, a company has a credit record and credit score. The healthier these are, the easier it will be to secure finance. A new business is obviously not going to have much in the way of credit history, so a lender will either want to start small, or will need some form of security. Loans for launching a new business or for a business which has just launched are often referred to as “start-up” loans. These are typically available over terms of one to five years, and can be government-backed.
More mature businesses have a variety of loan options, thanks to a credit history, a few years of accounts and an established turnover. These are in addition to other types of credit available such as business credit cards or factoring. Let’s take a look at some of the main loan options available in a little more detail.
Pros and cons of business loans
Business loans can be a good option if you’re looking to borrow a large amount of money over a longer period and at a lower price than a business credit card. However, this isn’t the most flexible option and it can sometimes be hard to qualify for the eligibility criteria.
- Large borrowing amounts are available and you’ll typically receive the money upfront, great for a big or one-off project, like expanding your business or hiring new staff.
- You’ll know how much you’ll pay in interest and how much your monthly repayments will be from the get-go.
- Lower rates than a business credit card (subject to status).
- Good option for borrowing long term. Some lenders may allow you to borrow over up to 25 years.
- Not very flexible – you need to know how much you’ll need to borrow when you apply.
- The minimum loan amount may be more than you need to borrow.
- Potential early repayment charges.
- Some lenders have strict eligibility criteria based on revenue, credit score and the type of business.
- Lenders may require collateral and a personal guarantee.
- There are better solutions for cash flow issues.
- Not all lenders are transparent with their rates upfront.
How can I find the best business loan for my company?
Here are some of the key features to consider when comparing business loans:
Frequently asked questions
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Compare £30,000 business loans
There are a few different ways your company can get its hands on £30,000. We unpack them to help you choose the right way forward.
Compare £20,000 business loans
Discover and compare the various ways your company could access finance of £30,000 to unlock its next chapter of growth.
Compare business loans for £15,000
Learn about the different business finance products that could give your company access to £15,000.
Compare £10,000 business loans
Learn about the range of funding options available to help SMEs borrow £10,000 and explore which could be right for your company.
Compare fast £5,000 business loans
Learn about finance options that could give your business fast access to £5,000.
£100,000 business loans
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.
Compare £50,000 business loans
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.
How a personal guarantee on a business loan works
If you run a small business and need to borrow money, you may be asked to give a personal guarantee. We’ve looked at how it works and what risks it carries.