Business Loan Guides
Compare business loans by cost, eligibility, repayment, and speed — plain-English guides to help you choose the right lender and apply with confidence.
Business loans explained
Use these guides to compare business loan options by cost, eligibility, repayment structure, speed, and lender fit before you apply — so you walk into a funding decision already knowing the answers.
What to compare before you borrow
Total cost of borrowing
Look past the headline rate at the APR, arrangement fees, and the total amount repayable over the full term.
Repayment structure
Fixed monthly payments, a share of card takings, or a flexible facility — match it to how your revenue actually arrives.
Eligibility & trading history
Most lenders weigh time trading, turnover, and credit profile. Knowing yours up front avoids wasted applications.
Speed to funding
Some lenders pay out in 24–48 hours, others take weeks. If timing matters, prioritise lenders built for speed.
Security & guarantees
Check whether the loan is secured against assets or needs a personal guarantee before you commit.
Early repayment terms
If you might clear the balance early, confirm whether there are exit fees or interest savings.
Latest guides
How Do Merchant Cash Advances Work: The Complete UK Guide for 2026
A merchant cash advance (MCA) gives your business a lump sum of capital upfront, which you repay through a fixed percentage of your daily or weekly card sales — not through fixed monthly instalments. There's no interest rate in the traditional sense; instead, a "factor rate" determines the total repayment amount from the start.
Business Loan for Self-Employed UK: 2026 Complete Guide
Self-employed people in the UK can access business loans in 2026, but the process differs from standard applications. Lenders assess income using SA302 forms, bank statements, or Open Banking data rather than payslips.
150 UK Small Business Grants Available Right Now
There are currently over 150 UK small business grants available right now, spanning innovation, sustainability, regional development, creative industries, and more. These grants are non-repayable, meaning you keep the money without paying it back.
Business Loan Repayment Examples: Real Payment Scenarios for UK SMEs
Business loan repayments typically range from £200 to £5,000 monthly for loans between £10k-£1m, depending on loan amount, term length, and interest rates. Most UK SMEs pay 6-25% annually with terms from 6 months to 7 years, with unsecured loans averaging 12-18% and merchant cash advances offering daily repayments based on card sales.
Business Loans With No Credit Check: What UK Borrowers Should Know
A genuine UK business loan with no credit assessment at any stage is unusual. Some lenders and brokers can begin with a soft-search eligibility check, while revenue-based finance, merchant cash advances and invoice finance may place more weight on trading data than on a credit score.
Why Do Small Businesses Fail? UK Survival Rates (ONS Data)
The often-quoted 90% failure rate doesn't match UK data: ONS figures show 38.4% of businesses born in 2019 were still active five years later, so roughly six in ten closed within five years. Most small businesses fail due to cash flow problems, lack of market demand, insufficient capital, and poor financial planning.
Unsecured Business Loans: Fast Funding Without Putting Up Collateral
Unsecured business loans provide funding from £10,000 to £500,000 without requiring collateral like property or equipment. UK lenders assess your business cash flow, credit history, and trading record rather than taking a charge over specific assets, although most will ask a director for a personal guarantee.
Bad Credit Business Loans UK: What Lenders Check and Realistic Options
Yes, you can get a business loan with bad credit in the UK, but your options narrow and the terms usually cost more. Lenders look at the company's credit file, the director's personal credit history, current trading performance, and cash flow, not credit score alone.
Start Up Loans UK: How the Government-Backed Scheme Works and Who Qualifies
Start Up Loans are unsecured personal loans backed by the UK government, delivered through the British Business Bank, for people starting or growing a business that has traded for less than five years.
Business Loans questions
The important details before you check eligibility.
What should a business compare before choosing a loan?
Compare total repayment cost, repayment frequency, eligibility criteria, security requirements, application speed, and whether the loan fits the way the business earns revenue.
How much can a business typically borrow?
Loan sizes vary widely by lender and depend on turnover, trading history, and affordability. Facilities commonly range from a few thousand to several hundred thousand pounds, with larger amounts available to established businesses.
Do I need to be a homeowner to get a business loan?
Not always. Some lenders ask for a personal guarantee that can take homeownership into account, but many business loans don't require you to own property.
Will checking my options affect my credit score?
An initial eligibility check is often a soft search that doesn't affect your score. A full application may involve a hard credit check, so confirm with the lender before you proceed.
How quickly can the money arrive?
It depends on the lender and how ready your paperwork is. Some online lenders approve and fund within a day or two, while traditional lenders can take longer.
Are business loan requirements the same in every market?
No. Eligibility, terminology, credit checks, and lender expectations vary by market, so each Funding Fred guide is written for the relevant country.
Ready when you are
Explore business funding options
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