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Business loansLast updated: 04 Nov 2026
Grow your business with a small business loan
Compare small business loans from 130+ UK lenders without affecting your credit score, and get up to £1 million in as little as 48 hours.
Why get a small business loan with Capitalise?
200,000 UK businesses trust us
Business credit data powered by Experian
£2bn in funding approved
FCA regulated since 2016
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What is a small business loan?
A small business loan is a type of finance that allows a business to borrow money and repay it, with interest, over an agreed period. Businesses can use a loan for a range of purposes, from managing cash flow and covering day-to-day costs to investing in equipment, hiring staff or funding expansion. Through Capitalise, you can compare funding options from a panel of 130+ lenders and borrow up to £1 million with just one application. This makes it easier to explore different options and find finance that suits your business needs.
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How do small business loans work?
Once approved, you receive the money as a lump sum and repay it in regular instalments, usually monthly, covering part of the amount borrowed plus interest. The amount, interest rate and term depend on the lender and the type of business loan you choose. Secured loans are backed by an asset, such as property or equipment, which the lender can claim if you don't repay. Unsecured business loans need no collateral, so lenders rely on your credit score, revenue and cash flow instead.
What can you use a small business loan for?
Improve cash flow
Upgrade your equipment
Hire more staff
Refinance existing loans
Purchase more stock
Expand into a new location
Small business loan calculator
Enter the loan terms below to see your estimated repayments.
How much do you want to borrow?
£
£50,000
£1,000£2 million
How long do you want to pay your loan back for?
2 years
3 months10 years
What is the annual interest rate?
17%
0.1%99%
Please note that some lenders may charge additional arrangement fees, which are not included in this calculation and should be considered when comparing total borrowing costs.
Loan amount£50,000
Total interest£9,333
Annual interest rate17%
Monthly interest rate1.417%
Daily interest rate0.0466%
Factor rate1.1867
Flat rate9.33%
Effective APR17.00%
Daily repayment£82.41
Annual repayment£29,667
£2,472 monthly repayment
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Who is eligible for a small business loan?
To be eligible for a small business loan, most UK lenders expect your business to:
Lenders may also look for positive cash flow, or a clear plan to reach it. If your business doesn't meet every criterion, our funding specialists can still help, though meeting them gives you more options and a better chance of approval.
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How do you apply for a small business loan?
You can apply for a small business loan with Capitalise in five steps:
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What documents will I need to apply for a small business loan?
Typically, you'll need to provide the following documents when you apply for a small business loan:
What are the different types of small business loans?
Types of small business loans | Pros | Cons | Best for |
|---|---|---|---|
No personal guarantee small business loans | No risk to your personal assets | Can come with higher interest rates | Businesses without sizable assets |
Business lines of credit | Flexible use | Potential for high fees | Ongoing operational expenses |
Invoice finance | Immediate cash flow from unpaid invoices | Depends on client payments | Businesses with delayed payment cycles |
Asset finance | Spread the payments of expensive equipment | Depends on the value of the asset | Acquiring high-value equipment |
Merchant cash advance | Easier on cash flow as repayments are based on sales | Higher cost of borrowing | Businesses with high credit card sales |
Short term small business loan | Quick access to funds | Higher monthly repayments | Short term financial needs |
Long term small business loan | Lower monthly payments | Longer debt commitment | Large, long term investments |
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APPLY FOR A SMALL BUSINESS LOAN
Apply for a small business loan today
Compare your options from 130+ business lenders and receive dedicated support from our experts when you apply for a loan with Capitalise.
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frequently asked questions
Page last reviewed on by Nick Richardson