Methodology for rating business loans
You’ll find star ratings on some of our business loan provider reviews. Here’s how we came up with them.
You may have noticed that some of our business loan pages and tables come with star ratings. What do these stars mean? Well, they let you see at a glance how good a business loan is. We explain below what goes into making the business loan star ratings.
We rate credit cards using a system of one to five stars.
How it works
We’ve scored business loans across several criteria. The different criteria as well as the categories have been weighted to reflect their importance. The final product is a star rating that gives you a full picture of how the business loans fare against each other.
So, how do we score business loans?
We dive into the details of each loan, including:
- Amount range. How little or how much can you borrow?
- Term range. How short or long can you borrow for?
- Repayment holiday. Does the provider let you take a break whilst repaying back the loan?
- Early redemption penalty. Will you be penalised if you repay the loan before your contracted term agreement?
- Repayment changeable. Can you change how much you want to repay?
- Overpay without penalty. Can you overpay when repaying back the loan?
- Same day funds. Can you potentially receive funds the same day you apply?
- Lump sum payments. Can you repay in lump sums?
- Existing customers only. Is the loan only available to existing customers?
- Ethical or green lending. Does the provider reduce its impact on the environment or help the local community?
- Open-banking. Does the loan use open-banking to help decide whether or not to approve your loan application?
- Transparency. Is the provider transparent with their fees?
From these details, we can get a good picture at which lenders offer the best flexibility and transparency. We then rate how these loans against the average market performance to get the overall Finder Score.
More guides on Finder
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.
Compare working capital finance options for your small business
What’s working capital finance? How does it work? Which type is right for your business? Our guide unpacks them to help you navigate cash flow ups and downs.
£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.
Compare business credit lines
Cashflows can be irregular and hard to predict. Access credit for your SME when you need it with a flexible line of credit.