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
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Bank lending to UK non-financial businesses has fallen to approximately 59% of GDP — a level not seen since 1998, making Q2 2026 a 28-year low point for business bank lending.
Growth Guarantee Scheme: Latest Guidance for UK Business Loans (August 2026)
The Growth Guarantee Scheme (GGS) is a UK government-backed programme that helps SMEs access business loans, asset finance, and invoice finance when conventional lenders say no.
UK Commercial Real Estate: Refinancing Price War Heats Up in Q2 2026
A £33 billion wave of maturing UK commercial real estate loans is forcing lenders to compete aggressively on price in Q2 2026. Senior loan margins on prime offices have been cut by around 45 basis points over the past year, according to Bayes Business School research.
Funding Circle Claims Two-Thirds of UK SME Loan Scheme Payouts
Funding Circle, one of the UK's largest non-bank SME lenders, has claimed approximately two-thirds of all payouts made under the British Business Bank's Growth Guarantee Scheme (GGS) and its predecessor Recovery Loan Scheme. Of the 937 settled lender claims totalling £55.03m by 31 December 2025, Funding Circle's share amounts to roughly £35–37m.
Business Loans for Stock and Inventory: Fast Funding for UK Retailers
Business loans for stock and inventory provide £10k to £1m funding specifically for purchasing, maintaining, or expanding product inventory. Unlike traditional bank loans that focus on credit history, these loans assess current trading performance and use inventory as security, with approval decisions in 24-48 hours rather than weeks.
Business Loans for VAT or Tax Bills: Fast UK Funding Solutions
HMRC doesn't negotiate payment deadlines, but your bank account shouldn't suffer for it. Business loans for VAT or tax bills provide immediate funding to meet HMRC demands while preserving your working capital for day-to-day operations.
Business Credit Score: The UK SME Owner's Guide to Better Funding Options
A business credit score measures your company's creditworthiness on a scale from 0-100, directly affecting loan approval rates and interest costs. Unlike personal credit, it tracks payment history with suppliers, outstanding debts, and company financial stability.
Cash Flow Business Loans: Fast UK Funding for Working Capital Gaps
Cash flow business loans are unsecured funding solutions designed to bridge temporary gaps in your working capital, typically ranging from £40,000 to £120,000 for UK SMEs.
Different Type of Business Loans Available in UK: Fast Funding Options for 2026
The different type of business loans available in UK range from traditional bank term loans requiring perfect credit to fast unsecured loans and merchant cash advances that approve within hours. Modern funding platforms now offer flexible criteria and smart tech solutions, while government-backed schemes provide lower-cost options for established businesses.
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
Start a short eligibility check and compare selected business funding options. It only takes about 2 minutes, with no hard credit check to start.