Compare business loans
Business Loans for UK Businesses
A business loan is a lump sum you borrow for your business and repay in fixed monthly instalments, with interest, over an agreed term. Loans can be unsecured or secured against property or assets, and range from a few thousand pounds to several million.
Funding Plus compares business loans from UK lenders in one quick enquiry, so you can see rates and terms side by side and choose the one that fits.
- Loans from £5,000 to £5m+
- Unsecured and secured options
- No impact on your credit score to get quotes
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Business Loans
How much do you need?
Takes about a minute. No impact on your credit score.
Business Loans at a Glance
- Amounts
- £5k – £5m+
- Terms
- 3 months – 25 years
- Decision
- Same day – 4 weeks
- Security
- Optional
- Best for
- One-off costs and growth
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Business Loans Work
- 1Tell us what you needHow much, what it's for and a few details about your business.
- 2We match you with lendersWe shortlist lenders on our panel that lend to businesses like yours.
- 3Compare your offersSee the rate, term, monthly payment and total cost of each offer.
- 4Get your fundsOnce you accept and the lender completes its checks, the money is paid into your account.
How Much Do Business Loans Cost?
What you pay depends on the amount, the term, whether the loan is secured and your business's credit profile. Lenders price by risk, so stronger accounts and security usually mean lower rates.
- Interest, shown as an APR or a monthly rate
- Arrangement fees, often 1% to 5% of the loan
- Early repayment charges on some loans
- Broker fees, if any (we'll always tell you before you go ahead)
Worked example
Borrowing £100,000 over 5 years
- Loan amount
- £100,000
- Interest rate
- 10% a year
- Monthly repayment
- £2,124.70
- Total interest
- £27,482
- Total repayable
- £127,482
Illustrative only, not a quote. Assumes a fixed rate and no fees. Your rate depends on your business and the lender.
Who Can Get Business Loans?
- A UK-based limited company, LLP, partnership or sole trader
- Usually 1 to 2 years' trading (start-up options exist)
- Turnover that shows you can afford the repayments
- A reasonable business and personal credit history
- Directors willing to give a personal guarantee, for most unsecured loans
What You'll Need to Apply
- Last 3 to 6 months of business bank statements
- Latest filed accounts or tax returns
- Management accounts for larger loans
- ID and address details for directors
Pros and Cons of Business Loans
Advantages
- Fixed repayments make budgeting simple
- You keep full ownership of your business
- Interest is usually a deductible business expense
- Wide choice of lenders, terms and amounts
Things to watch
- Most unsecured loans need a personal guarantee
- Arrangement fees and early repayment charges can add cost
- Missed payments damage your credit score
- Approval depends on trading history and affordability
Types of Business Loan
Unsecured business loans
No property or assets needed as security. Fast, but usually smaller and pricier.
Compare unsecured loansSecured business loans
Backed by property or assets for larger amounts and lower rates.
Compare secured loansSmall business loans
Smaller amounts for SMEs, micro-businesses and sole traders.
Compare small business loansBad credit business loans
Options when you have CCJs, defaults or a low score.
Compare bad credit loansBusiness Loans vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Business loan | One-off costs and planned growth | Days to weeks | Optional |
| Business line of credit | Ongoing or unpredictable cash needs | Days | Usually none |
| Asset finance | Buying equipment or vehicles | Days | The asset itself |
| Merchant cash advance | Card-taking businesses with uneven sales | Days | None |
Who Uses Business Loans?
Business loans suit almost every sector. These industries use them most often, alongside sector-specific finance.
Customer story
“[Real customer story for Business Loans: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] business loan
Business Loans FAQs
How much can I borrow with a business loan?
Lenders on our panel offer from about £5,000 to £5m and more. Unsecured lenders often base the limit on a share of your annual turnover, while secured loans depend on the value of the security you offer.
Do I need security for a business loan?
Not always. Unsecured loans don't need property or assets, though most lenders ask directors for a personal guarantee. Secured loans use property or assets to unlock larger amounts and lower rates.
Will applying affect my credit score?
Getting quotes through Funding Plus won't affect your credit score. A full credit check happens only when you choose an offer and apply.
How quickly can I get a business loan?
Some unsecured loans pay out within a few working days of approval. Secured loans and larger amounts usually take two to six weeks because of valuations and legal work.
Can a new business get a loan?
Yes, though choice is narrower. Start-up lenders and the government-backed Start Up Loans scheme fund businesses with little or no trading history.
Is a business loan tax deductible?
Interest on a loan used for business purposes is usually an allowable expense. The repayments of the amount borrowed are not. Check the details with your accountant.
Related Guides
Compare business loan quotes today
One quick enquiry, offers from UK lenders that fit, and a real person to talk you through them.