If you’re looking to borrow money as a business, a business loan is a popular way of doing so. You’ll be able to borrow a lump sum of cash over a set term which you can then use to help pay for anything from new equipment to unexpected bills.
This review takes a look at the business loans on offer from Nest.
Nest business loans comparison
Nest business loans
Other popular business loans
What is Nest?
Founded in 2015, Nest provides a multi-lender platform to help businesses across the UK find the right loan for them. The company is regulated by the Financial Conduct Authority (FCA) and works with more than 200 lenders.
Quick overview of Nest Business Loans business loans
|Minimum trading period
|From 6 to 120 months
|From £10,000 to £5,000,000
What types of business loans does Nest offer?
Nest offers the following types of business loans:
Unsecured business loans
With this type of loan, you don’t need to borrow against your assets. This means there’s no risk you’ll lose your home or personal belongings if you struggle to repay the loan.
Unsecured business loans can be used for a wide range of purposes and funds can be transferred within a matter of hours.
Cash flow facility loans
A cash flow facility is a line of credit that lets you draw funds as and when you need them. This can help cash flow or cover expenses and you only pay interest on the amount borrowed.
Merchant cash advance
A merchant cash advance works by providing a loan to the business which is paid back via a percentage of the business’s card sales. They can be a good option for businesses that have fluctuating income as you’ll pay back more when business is booming, but less during months where business is quieter.
Invoice finance uses your outstanding invoices as security to borrow up to 90% of the total invoice amount. This can be a good option if you need to access cash quickly without signing up to a long-term agreement.
Key features of Nest business loans
Some of the key features of Nest business loans are outlined below:
- Fast application process. It takes 60 seconds to apply according to Nest. Offers can be with you in less than 24 hours.
- High borrowing amounts. You can borrow from £10,000 up to £5,000,000.
- Wide range of lenders. Nest will compare rates from more than 200 lenders to find you the right loan.
- Expert assistance. Nest’s experts will help guide you through the whole application process.
Nest customer reviews
Nest Business Loans is highly rated on review site Trustpilot. It scores 4.7 out of 5 stars from over 30 reviews (updated March 2023), giving it an a rating of “excellent”.
Customers praise the excellent customer service and support, plus the speed and ease of securing funds.
Am I eligible for a Nest business loan?
Exact eligibility requirements depend on the loan you’re applying for. If you have a strong credit history, your chances of acceptance will be higher and you’re more likely to secure a competitive interest rate.
However, Nest says it offers a “unique approach” that ensures your business will be evaluated on metrics such as disposable income and expected cash flow. This means you’ll have more options to choose from and a greater chance of securing a loan.
Nest application process
You can apply for a business loan with Nest online. Simply click through to fill in the application form, where you’ll need to provide details about how much you would like to borrow, the type of loan you want to apply for and details about your business, including its annual turnover. You will also need to provide some personal details.
Once you’ve completed the form, you will be matched with the most suitable lenders – initial quotes won’t affect your credit score. Once you have received a selection of offers, an account manager will talk you through your options so you can decide which offer is best for you.
Your account manager will then handle all correspondence with the lender and any requests for information. Your account manager will give you regular updates and help ensure the funds are transferred as quickly as possible.
Alternatives to business loans
As well as business loans, there are other types of finance that businesses can turn to. These include the following:
A business credit card
A business credit card enables you to borrow money flexibly and can help you to manage cash flow. Businesses can spend up to their set credit limit as and when they need to and then repay the amount borrowed in monthly instalments. These repayments are not fixed as they are with a loan, which means that as long as you pay off at least the minimum each month, you can choose how much you want to repay. Just remember that interest will be charged on any remaining balance.
With asset finance, you can get access to business equipment, machinery and vehicles without the need to pay for them upfront. The 2 most common forms of asset finance are hire purchase and lease financing.
With hire purchase, you lease the asset over a set term in return for fixed payments, plus a deposit. At the end of the term, you own the asset outright.
With lease financing, you rent the item back from the lender for a fixed monthly fee. At the end of the term, you might be able to continue renting, buy the item for an agreed price or return it.
You can apply for asset finance with Nest.
Government grants or business loans for startup
A government grant is a sum of money awarded to a startup business to help it grow. Unlike a business loan, there is no need to repay a business grant and no interest will be charged.
There are hundreds of different grants in the UK, but you will need to check the eligibility requirements carefully. Different grants are available to businesses in certain areas and in different sectors.
Equity crowdfunding lets you raise funds from a “crowd” of investors. You will need to list your business on an online platform and in exchange for their investment, these individuals or organisations get a share in your company.
These are high-net-worth private individuals who invest their own funds into your business in return for a stake in the company. They will often be able to offer valuable skills, contacts and expertise to help your business succeed.
Nest is rated as ‘excellent’ on Trustpilot with a score of 4.8 based on over 40 reviews (November 2023). Customers praise Nest’s easy application process and its business loans service.
How do I get in contact with Nest’s customer services?
You can call Nest on 0203 370 7071 or email email@example.com.
Frequently asked questions
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