Business Loans UK – Get The Best Small Business Loan Options
Business Loans – Get £5k–£750k in 24 Hours | Low Rates & Fees
If you’re looking to raise funds for your business, you could take a secured or unsecured business loan. Get the best deal with ABC Finance.
Over 30,000 loan-seekers helped
5* Rated Business Lending Broker
Receive your funds in as little as days
Market-leading interest rates
Experienced Commercial Advisors
No Broker Fees
Author: Gary Hemming CeMAP CeFA CeRGI CSP
20+ years experience in business credit
Business loans allow you to borrow funds to enable your expansion plans, increase stock or simply boost your business cash flow.
We make it easy to apply, and our team of experts have access to the leading lenders in the loan market allowing us to compare options and find you the best deal quickly.
We offer the personal touch and review your application to ensure we find the perfect deal for you.
Key Features
Loan Size
From £5,000 to £750,000
Interest rate
Rates from 5.5% - fixed rate or variable
Types
Unsecured or secured available
Term
3 months - 72 months
Completion timescale
From 24 hours
Eligible borrowers
UK businesses - England, Wales, Scotland & Northern Ireland
Business loan eligibility, affordability and credit score requirements
To be eligible to apply for a loan with ABC Finance you must meet the following criteria:
- Have a UK based business
- Have been trading for 6 months or more
- Be based in the UK
We can consider applications from all types of applicants. As we work with multiple lenders and offer many different types of business finance, we can find a suitable option for most borrowers.
We can fund any profitable business, or even some loss-making companies, where lending is secured.
How to apply for a small business loan online
To apply, talk to our team to find the best deal for your business. They will present the options available to you.
Once you’ve chosen a product, the lender will assess your application and issue an agreement in principle that is personalised to your business.
You will complete the application form and send them any supporting information required for underwriting.
Once the underwriting process is complete, you get your loan offer, which you sign and return.
Your application is complete and your funds are sent to your business bank account or for sole traders, your current account. Most lenders also allow online payments directly to your bank.
Business loans can be completed and the money in your account in as little as 24 hours, especially unsecured loans to a British business, so the application process is very simple.
Why choose ABC Finance for flexible business loans?
At ABC Finance, we’ve been helping clients – from small business owners to large organisations – fund their businesses and manage their company finances since the year 2000.
We’ve helped over 30,000 loan seekers and work closely with each client to help them find the perfect solution.
Technology is key to how we operate and we use it to streamline our processes and make it easier for our clients to secure the funds they need to make their business thrive. For this reason, we're able to secure funds for our clients extremely quickly.
Whether you’re ready to apply, or just looking for advice, our team of experts are on hand to help.
Getting started with your loan application
To get started with your business loan application, fill out our form to get a quote.
One of our dedicated experts will then be in touch to find out more about what you need and will look to get your loan application approved straight away – usually within 1 hour.
Once approved, we just need a few simple documents and then we’ll be able to focus on getting your funds released in a quick manner. In most cases, we just need:
- A copy of your business bank statements (PDF’s from your online banking are accepted)
- Financial details for your business
- Some personal details about the business owners to prevent fraud
Our process is really simple and we’ve streamlined it further to make sure we can get your funds released quickly. If your business could benefit from a cash injection, get in touch today.
Common uses of business loans for growth and cashflow
A business loan can be used for almost any purpose. Common uses include the following:
- Purchasing equipment – finance new machinery, vehicles or IT systems with predictable monthly repayments, improving business efficiency without draining cashflow, protecting your savings.
- Funding business growth – Improve working capital to expand premises, hire staff, launch new products or enter new markets.
- Covering bills (short-term) – Bridge cashflow gaps and pay suppliers, tax bills or wages on time with fast access to money from short-term loans.
- Purchasing stock – Buy inventory in bulk, prepare for seasonal demand, or secure supplier discounts using the improved working capital from flexible loan facilities.
- Marketing campaigns - Fund marketing to grow your brand and increase trade levels, providing a strong return on investment
How business loans work – rates, terms and repayments
Business loans work on a similar basis to personal loans. The lender releases the full amount borrowed to your business bank account once the loan application process is complete.
Once the funds are in your account, you’re able to spend them as needed, or even hold onto them if the idea is to give yourself a cash buffer.
In line with your loan agreement, you usually make monthly repayments for the agreed loan term until it is repaid in full. While some products offer alternative payment structures, monthly repayments are the most common.
What are the alternatives? Overdrafts, invoice finance, asset finance & more
If you’re looking to raise finance for your business but aren’t sure which product is the most suitable, it’s important that you consider the alternatives before you commit. The key alternatives are are:
- Invoice finance – Invoice finance allows you to release the cash tied up in unpaid invoices to improve working capital and ease cashflow pressures. t can be broken down into 2 different products, invoice factoring and invoice discounting.
- Merchant cash advance – A merchant cash advance allows you to repay flexibly through a percentage of daily card sales, ideal for retail and hospitality SMEs.
- Commercial mortgages – A commercial mortgage allows you to secure long-term funding for buying or refinancing business premises, often at lower interest rates.
- Asset finance – Asset finance is used to fund vehicles, machinery or IT equipment by spreading costs over time, keeping capital free for growth.
- Business overdraft – short-term borrowing linked to your bank account, useful for covering temporary cashflow gaps.
Choosing the right finance product for your business
To find the right business finance product, the first step is to understand your business and its needs.
For example, considering how much money you need to borrow, how long you would like to pay it back over and whether you want to repay it in full, or retain the ability to borrow over time.
This will help you to narrow down your options to those most suitable for your business needs.
If you’re struggling to find the right product or would like help, then our experts are on hand to consider options from across the market and make recommendations on the best option.
The pros and cons of this type of lending for businesses in the UK
The pros and cons are:
Pros
Fast and Flexible
Times have changed, and the major banks are no longer the go-to option for business funding. Most specialist lenders have online portals that show your eligibility, credit score impact and affordability checks, giving you an idea of approval rates upfront. Usually, loans complete in around five days, with clear terms, APR and repayment schedules provided before you sign.
Funding Is Becoming More Widely Available
Loans are much easier to come by than they once were. Across the alternative finance market, there are now more business loan products and funding options from specialist lenders than ever, often with competitive interest rates. There is a good chance that one of these solutions will give your business the working capital it needs, with flexible repayment terms and a quick application process.
Low Interest Rates
Business loan interest rates from specialist lenders are far lower than they have been historically, with rates starting from as low as 5.5% and low fees. The exact rate depends on your credit score, loan term and affordability checks, but we always always work to get you the best possible repayment options and rate. Interest costs are also tax deductible.
A Cash Injection Can Provide A Big Boost To A Business
A cash injection through a business loan can provide the working capital needed to expand, fund growth projects and increase profits, with flexible repayment terms tailored to your business.
Cons
Funding Is Harder To Come By For Start-ups
For established businesses, funding is becoming more widely available. But for start-ups, the application can be time-consuming and difficult. Funding is available but be prepared to provide a lot of information in order to be successful in securing business loans.
Personal Guarantees
The lender will usually require a personal guarantee, which means that you will personally be liable if the business defaults. Although personal guarantees can be insured, there is a cost associated with this, which drives up the costs of any business credit that your company takes out.
FAQs – rates, fees and eligibility
Here are some of the frequently asked questions that cover
What is a business loan and how do rates and fees work?
Business loans are a form of commercial finance product that are usually issued on an unsecured basis, these are known as unsecured business loans.
Business loans have traditionally been issued by the business’ own business bank. But, there are now numerous specialist lenders, who offer faster and more flexible finance.
The team at ABC Finance Ltd are on hand to find the lowest rates for your company.
Will I need to give a personal guarantee?
Yes, in almost all cases, a personal guarantee is required when taking out this type of finance. Where required, the PG is signed by the people behind the business, such as a Director or Shareholder.
While a personal guarantee will be required, this can be offset slightly by taking out personal guarantee insurance.
A PG may not be required for some smaller business borrowing, but this is judged on a case by case basis.
How long does it take to get the money?
We can get you a business loan in as little as 24 hours and get you pre-approved in as little as 1 hour.
That said, in most cases, it’s a good idea to choose a lender who takes a little longer to complete, but will offer a much better deal.
What interest rate will I pay?
Each application is judged on its merits and all applications are individually priced. For this reason, it’s difficult to give an exact interest rate, although we can offer rates from as little as 5.5%.
Some of the very fast providers charge much higher interest rates than some of the more traditional business lending providers.
Interest can be fixed rate or variable rate, connected to the Bank of England Base Rate.
What are typical loan terms for UK businesses?
In most cases, you can borrow over a term of 3 months to 6 years.
The maximum term will depend on a number of factors including your business details, affordability and your chosen lender.
If you require a longer finance term, a secured product may make this a possibility.
Am I able to take out this type of loan alongside other borrowing?
Yes, you can still take out this type of finance even if you have other borrowing, such as a business overdraft, credit cards, invoice finance or asset finance. In fact many companies take out business credit alongside other types of debt.
Each application is individually assessed for affordability and to ensure that the product offered is suitable.
Will applying impact my businesses credit score?
When you apply for a business loan with ABC Finance, there is no impact on your credit score.
Our team of business financing experts first learn about your business and look for the best deal based on your circumstances and needs. At this point in the process, no credit check is required.
Will I qualify if I have bad credit?
Yes, you can still qualify for some products if you have a poor credit rating, including low credit score, defaults or CCJs. That said, your choice of lender will be significantly reduced and you may pay slightly higher business loan rates.
We offer a range of bad credit business loans for clients with a poor credit history. In some cases, we may be unable to offer an unsecured business loan for bad credit borrowers, although we may still have secured business loan options available.
What happens if I don’t keep up the repayments on my loan?
If you don’t keep up your repayments, as with any loan, the lender will seek to recoup their money through other means.
Whichever type of finance you have taken out, if you have signed a personal guarantee, the lender can take action against you personally to ensure that they are repaid. This is true of business loans, cash advances or even asset based lending. Missed payments could harm your credit score, both personally and your business.
For unsecured loans, the lender may take legal action to get their money back, enforcing their personal guarantee if necessary. This is because unsecured loans are not secured against any property.
For secured loans, the lender may seek to repossess the security property, before selling it to recoup their lost funds. If you face difficulty in meeting your repayments, it’s important that you approach your lender immediately and look to come to an agreement.
Of course, we try to avoid this by taking extra care during the approval process to ensure that any money borrowed can be repaid. This is one of the key advantages of working with ABC Finance.
When should I apply?
It's best to apply before the funds are needed to avoid being impacted negatively should you face delays.
If you need support in deciding when to reply, get in touch today and our business loan experts will be happy to talk it through with you.
Who are the best lenders?
As the market continues to grow, so does the number of lenders in the loans market. The main ones are:
- High Street Banks
- Highly Specialist Independent Commercial Lenders
- Challenger Banks
There are key differences in the application process when applying with each of these. The easiest to qualify for are specialist independent lenders.
What documents do I need to apply?
When applying for a commercial loan for your business, there are a few essentials that you must provide:
- Your company name and registration number
- Business bank statements (some lenders can access this directly, with consent using open banking purely for the purposes of arranging the loan)
- Accounts including a profit and loss statement and balance sheet (some lenders can connect directly to your accounting software provider)
For startup businesses, a business plan will be required that breaks down analysis of your current situation, business goals and income projections for the future.
Are commercial loans regulated in the UK?
No, business corporate loans are not regulated in the UK.
That said, some companies in the industry are regulated and will usually operate to higher standards as a result.
For example, banks are regulated by the Prudential Regulation Authority. As a leading loans business, we are regulated by the Financial Conduct Authority as we offer regulated as well as unregulated borrowing options.
We treat all of our customers the same whether they're an individual or business, and whether they're taking looking at mortgages or unregulated business financing.
Are there specific loans available for startups?
Yes, there are specific finance options available for startup businesses, including the government start-up loans scheme.
These services offer strong value with low APR and are a good option for those who want to avoid approaching investors, preferring traditional loans.
The start-up loans scheme gives you a dedicated loan officer who helps you throughout the process. That said, as an unsecured loan, the criteria can be strict and the application process is tough to pass.
For those who are happy to offer collateral for their commercial loan, then secured lending is the best option for most borrowers.
Is a commercial loan right for my business?
Taking out a loan for your business is an individual decision that will depend on the current circumstances of your business, the ways in which you could use the funds raised and any future expected changes to your company or industry.
Whether you’re a small business, medium sized, large or even an entrepreneur with multiple businesses, deep analysis is required before taking out a loan. The key to this research is to guide you on the borrowing options available and the benefits of each one.
Consider your current status and the flexibility that your business operations would have from a cash injection. A business loan can be a key tool for your company when used properly.
To understand the potential costs of borrowing money, use a business loan calculator to calculate your monthly loan repayments. Also consider future events, such as the likelihood of early repayment and how any early repayment fee could impact costs.
How do banks like NatWest or the British Business Bank assess my credit rating, current account activity, and existing overdrafts when approving a business loan?
On application for business funding, major banks such as NatWest or the British Business Bank typically review your credit rating, recent credit score checks, your accounts, and the way your current account is managed.
They check payments, financials, profit and loss, balance sheet and cash flow, while also checking for reliance on overdrafts or other short-term credit facilities.
You’ll usually have to provide management accounts, accounting software exports, to show recent trade and corporate activity.
