Loan Details
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About Business Loans
Types of Business Loans in the UK
  • Term Loans: Fixed amount borrowed and repaid over a set period with interest
  • Start Up Loans: Government-backed loans for new businesses (up to £25,000 per founder)
  • Asset Finance: Loans secured against business equipment or vehicles
  • Invoice Finance: Borrow against unpaid invoices
  • Merchant Cash Advance: Repaid as a percentage of card sales
Current UK Business Loan Rates (Typical)
  • Bank loans: 6-15% APR
  • Start Up Loans: 6% fixed
  • Alternative lenders: 8-30% APR
  • Peer-to-peer: 5-15% APR
Factors Affecting Your Rate
  • Business trading history
  • Personal and business credit scores
  • Annual turnover and profitability
  • Loan amount and term
  • Security/collateral offered
  • Industry sector risk
Tips
Before Applying
  • Check your business credit score
  • Prepare financial statements
  • Create a clear business plan
  • Compare multiple lenders
  • Understand total cost, not just APR
Reducing Your Rate
  • Offer security/collateral
  • Improve credit history
  • Show consistent revenue
  • Consider shorter terms
  • Use a broker to compare
UK Lending Sources
  • Start Up Loans: startuploans.co.uk
  • British Business Bank: british-business-bank.co.uk
  • High Street Banks: Barclays, Lloyds, NatWest, HSBC
  • Alternative Lenders: Funding Circle, iwoca, Capify