Business loan calculator UK

Use our business loan calculator to find out your monthly cost and total repayable amount.

Business loan calculator

Use the fields above to calculate the cost of your business loan.

What is a business loan?

A business loan is a way of borrowing money from a lender that can then be used to fund start-up costs or help your business to grow.

A business loan works in the same way as any other loan – you borrow a fixed lump sum and then repay it, plus interest, over a set number of years (known as the “term”). Depending on the type of loan you take out, your interest rate will be fixed or variable.

Types of business loans

There are 2 main types of business loans: unsecured and secured.

Unsecured business loans allow you to borrow funds without needing to secure them against any business assets such as property or equipment. The amount you can borrow and the interest rate charged will depend on the creditworthiness of you and your business. The better your credit rating, the more you’re likely to be able to borrow and the more competitive the interest rate will be.

Secured business loans require you to use an asset from your balance sheet as security, usually property. It may even be possible to use your own home as security, but remember that if you are unable to keep up with your loan repayments, your home will be at risk.

Because lenders have this added security, you will usually be able to borrow a larger amount of money with a secured loan compared to an unsecured loan. Interest rates may be lower too.

How to apply for a business loan

You can usually apply for your chosen business loan online. You will typically need to provide details such as your business turnover in the past 12 months, your projected turnover for the next 12 months, your net profit, the date your business started trading and your address history for the past 3 years.

You may also need to provide details of any existing personal loans, overdrafts, mortgages or credit card repayments as well as any existing business loans or overdraft repayments. In addition, you will usually need to provide proof of ID and address.

Once you’ve made your application, the provider will run a credit check to assess your creditworthiness and whether they are willing to lend to you.

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.

More guides on Finder

  • Ecommerce business loans

    Discover more about the different ways to fund your ecommerce business.

  • Finder Lending Innovation Awards 2022

    These awards recognise innovation in the areas of credit cards, loans, mortgages and BNPL. We reveal this year’s winners.

  • Limited company loans

    See how to get a business loan as a limited company in the UK, and how much you can borrow.

  • Sole trader loans

    Find out how to get a loan if you work for yourself, including which lenders offer business loans for sole traders.

  • Loans for small businesses affected by coronavirus

    Learn about government support and alternative options for businesses needing finance to help deal with the impact of coronavirus.

  • Tax implications of business loans in the UK

    Find out if a business loan is considered income and what you can claim as a tax deduction when taking out a loan.

  • Business loan statistics

    Businesses all over the UK face financial instability daily, which often requires outside funding. We have looked into how the state of borrowing for these businesses differs between the industry, over the years, and for the size of the business.

  • Best non-bank business loans

    Get low rates, quick decisions, good customer service and plenty of flexibility through non-bank lenders.

  • Compare small business loans

    Discover how to find the best small business loan and compare live rates and fees from a selection of lenders.

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