Love Finance business loans review

If you’re looking to borrow money as a business, you might be considering a business loan. Business loans typically enable you to borrow a sum of money that you then repay, plus interest, in regular instalments over a set term.

Business loans are a popular way to borrow as you can use the funds for whatever you need, whether that’s to pay for equipment or cover unexpected bills.

This review looks at the business loans on offer from Love Finance.

What is Love Finance?

Founded in 2012, Love Finance is a financial company based in Birmingham. It works with a range of lenders with the aim of helping UK businesses find the right type of loan or finance option for them.

What types of business loans does Love Finance offer?

Love Finance offers a variety of different loans and you can check your eligibility for each one on the Love Finance website. This won’t affect your credit score.

Small business loans

Small business loans can be used for any commercial purpose, such as startup costs and equipment purchases, with interest rates starting from 2.9%. You’ll typically be able to borrow up to £250,000, with same-day funding available.

Unsecured business loans

With an unsecured business loan, you do not need to put up any collateral which means there’s no risk that you will lose your home or personal belongings if you cannot repay the loan.

Unsecured loans usually have higher rates than secured loans, but can be used for a range of business purposes. You’ll typically be able to borrow up to £500,000 and get funds within 24 hours.

Instant business loans

Instant business loans enable you to borrow up to £500,000, with same-day funding available in as little as 4 hours. This type of loan could be handy for unexpected expenses such as repairs or renovations. Interest rates start from 2.9%.

Limited company loans

Limited company loans are specifically designed for limited companies and enable them to borrow up to £500,000. Love Finance limited company loans are always unsecured, so you do not need to use an asset as collateral.

However, limited company loans often have higher interest rates and stricter repayment terms than other types of business loans. You will also need to have a business account to get a limited company loan with Love Finance.

VAT loans

A VAT loan is a type of tax loan that can be used to help businesses with their VAT payments. They are typically short-term loans that are repaid over 3–12 months. VAT loans can be useful for businesses struggling to pay their VAT bill on time, but they can also be used to finance other business expenses.

With Love Finance, you can borrow up to £250,000, but as VAT loans are short-term loans, the amount borrowed is usually lower. Interest rates can be competitive compared to other types of loan.

Merchant cash advance

A merchant cash advance works differently to a traditional business loan. They are often used by businesses that need quick access to cash and they are repaid through a percentage of future credit card sales. This means they don’t require monthly loan repayments and can be a good option for businesses that have fluctuating income. With Love Finance, you can borrow up to £250,000.

As well as the above loans, Love Finance also offers van finance and asset finance.

Unsecured business loans up to £250,000

• Flexible payment terms
• Instant credit decision

Representative example: Borrow £25,000 over 5 years at a rate of 19.40% p.a. (fixed). Representative APR 19.40% and total payable £ 38,395.20 in monthly repayments of £639.92.

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Am I eligible for a Love Finance business loan?

Exact eligibility requirements will depend on the type of business loan you’re applying for. But you’re more likely to be accepted if you have been trading for at least 12 months and you have good credit with no County Court Judgements.

There is usually a minimum turnover requirement too, but this will vary depending on the loan. For example, with a small business loan, you need to have a turnover of at least £50,000 a year. With an unsecured business loan, you need a turnover of more than £10,000 a month.

Love Finance application process

To apply for a Love Finance business loan, you’ll need to first get a quote on the website – this won’t affect your credit score. You will need to enter a few details about the amount you want to borrow and the type of business you have. You will also need to show proof of income and expenditure and perform some ID verifications.

Once your loan has been accepted you’ll need to sign some documents and the funds will then be transferred.

Love Finance customer reviews

Love Finance is highly rated on review site Trustpilot. It scores 4.9 out of 5, giving it an “excellent” rating (updated September 2022).

Positive comments mostly focus on the quick and easy application process, the helpful customer service and excellent communication.

Alternatives to business loans

If you’re not sure whether a business loan is right for you, there are other options to consider, including:

A business credit card

A business credit card is a flexible way of borrowing funds and can be a useful way to manage cash flow.

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Asset finance

With asset finance, you can access business equipment, machinery and vehicles without the need to pay for them upfront.

Learn more

Invoice financing

Invoice financing enables you to borrow money based on what customers owe you, which means you’ll get paid faster.

Learn more

You can read more about these options in our guide.

Frequently asked questions

• Is Love Finance safe?

  Yes, Love Finance is authorised and regulated by the Financial Conduct Authority (FCA).

• How long does the Love Finance application process take?

  The Love Finance application process will usually only take a few minutes to complete. Funds will often be in your account within the same day or 24 hours later.

• Can I take out a second Love Finance loan?

  Yes, you are able to take out more than one Love Finance loan, provided you qualify. However, you must be sure you are able to keep track of repayments for both.

• Can I change my repayment date?

  This will depend on the type of loan you’ve taken out, so it’s best to contact Love Finance to find out more.

• Can I make overpayments on my loan?

  Yes, you can choose to make overpayments or pay off your loan early and you won’t be charged an early repayment fee. However, you may still be required to pay interest for the months your loan agreement covers even when paying early.

• Will I need to provide a personal guarantee or some form of security?

  This will depend on the type of loan. Some lenders might ask for a personal guarantee which is a promise that you will personally pay off the loan if the business is unable to. If this is the case, make sure you understand the terms and conditions fully.