Limited company loans

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

Name Product Loan type Loan amounts Loan terms Turnover/trading criteria
Barclays Unsecured Business Loan
Fixed rate unsecured loan
£1,000 to £25,000
1 year to 10 years
No specified minimum turnover or time trading
Representative example: Borrow £25,000 over 5 years at a rate of 7.7% p.a. (fixed). Representative APR 7.7% and total payable £30,014.40 in monthly repayments of £500.24.
Fleximize Unsecured Business Loan
Fixed rate unsecured loan
£5,000 to £250,000
3 months to 3 years
£60,000 minimum turnover,
minimum 6 months trading
Representative example for loans of £25,000 or below: Borrow £12,500 over 15 months with an interest rate of 36.4% p.a. (fixed). Representative APR 43.1% and total payable £15,740.33 in monthly repayments of £1,049.36.
iwoca Flexi-Loan
Variable rate unsecured loan
£1,000 to £200,000
1 month to 12 months
No specified minimum turnover or time trading
Representative example: Borrow £10,000 over 12 months at a rate of 40% p.a. (variable). Representative APR 49% and total payable £12,294.
MarketFinance Small Business Loan
Fixed rate unsecured peer-to-peer loan
£5,000 to £250,000
6 months to 3 years
£50,000 minimum turnover,
minimum 2 years trading
The Start Up Loans Company Start Up Loan
Fixed rate unsecured loan
£500 to £25,000
1 year to 5 years
No specified minimum turnover,
maximum 2 years trading
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What is a limited company loan?

A limited company loan is any form of business loan or finance that’s available to limited companies. This includes products like unsecured business loans, asset finance, invoice finance, business line of credit and business overdrafts.

In the UK, a limited company refers to a business where the managers of the company are distinct from the owners, as is the case with publicly listed companies.

Can limited companies get loans?

Yes, limited companies will normally be eligible for most types of business loan. This includes both loans from commercial lenders and those offered as part of the government-backed British Business Bank, which is currently offering Recovery Loans through its network of accredited lenders.

How much can a limited company borrow?

This will depend on things like your annual turnover and trading history, as well as the type of loan your company requires. Some lenders offer business loans up to £500,000, and larger businesses may be able to borrow even more. With the government-funded Recovery Loans, limited companies can also borrow up to £10 million, but will need to provide a personal guarantee on loans above £250,000.

What types of business loans can a limited company get?

Limited companies are eligible for:

What can I use a limited company loan for?

You can use a limited company loan for any worthwhile business purpose, such as managing cash flow, funding growth, expanding your workforce, purchasing expensive equipment or premises or for other business-related costs.

However, certain types of business loan, such as asset finance, can only be used for specific purposes. In the case of asset finance, this would be to fund the purchase of equipment or other asset.

Am I eligible for a limited company loan?

In order to be eligible for a limited company loan, you will generally need to meet the following criteria:

  • Be at least 18 years old
  • Be a UK resident
  • Have a business that is registered and trading in the UK

You may also need to provide additional documentation, such as business plans and trading history, and meet certain other requirements, such as minimum annual turnover and trading history, to be eligible for a loan.

How to apply for a limited company loan

  1. Find the type of loan you require. There are different types of loan for things like purchasing equipment or improving cash flow, so make sure you’ve first identified what you need the loan for.
  2. Work out how much you need to borrow. It’s important to only borrow as much as your company requires to avoid expensive and unnecessary interest repayments.
  3. Compare lenders. There are a range of commercial lenders and brokers that specialise in certain types of business loan.
  4. Check your eligibility. Once you’ve found the right lender, confirm that your business meets its lending requirements.
  5. Apply for the loan. Contact the lender directly in order to start your application.

Pros and cons of limited company loans

Pros

  • There’s a range of commercial and government-backed loans available
  • As a limited company, you may have more lending options than other types of business

Cons

  • You’ll likely need to provide detailed documentation in order to get a loan
  • You may be ineligible for certain types of loan

Bottom line

As a limited company, you should have a number of business loan options that can help you better manage your business. However, it’s important to first identify the specific type of loan your business requires before applying.

Frequently asked questions

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