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Businesses Funding Business Loans

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Business loans: Secure funding for your business

  • Search from over 100 UK lenders
  • Check affordability without affecting your credit score
  • Business loans from £5,000 - £10m+
  • Get business loans in as little as 48 hours

What is a business loan?

A business loan is a type of funding offered to businesses, as opposed to an individual. They are intended to be used only for business purposes, and shouldn’t be used for personal needs. 

Business loans can be essential for growth. They can help businesses to expand, improve, and stay flexible without tapping into their day-to-day funds. Whether you're just starting out or you've been around for a while, a business loan can open up new opportunities and help you weather financial ups and downs.

Business owner that gets a business loan

How to get a business loan

To get a business loan, you’ll need to apply to a lender who will review your application.

Here’s how the process works when you apply for a loan with Capitalise:

  1. Sign up to check what business loans you’re eligible for using the funding calculator
  2. Search for a match from our marketplace of 100+ lenders
  3. Speak with one of our funding specialists and upload any requested documents to your application profile. 
  4. Apply to up to 4 lenders, all in one application 
  5. If approved, you can get funding in your account in as little as 48 hours.

If the application is successful and you accept the terms, your business will receive the funds, usually in a short period of time, depending on the lenders. Repayments are usually a monthly basis with a fixed repayment until the amount is repaid in full, including interest. 

What types of business loans are available?

There are various types of loans available for businesses. From traditional term loans, to specialised options like invoice financing, there’s something for every business need. Read through the common types below to find out the funding that fits your business now:

  • Invoice finance: Get immediate cash by borrowing against the payments due from your customers, freeing your business from waiting for invoices to clear.
  • Asset finance:  Allows you to buy or lease equipment immediately without full upfront payment, helping you manage your cash flow better.
  • Merchant cash advance (MCA): Ideal for businesses with lots of card transactions, this gives your business cash upfront in return for a cut of your future sales.
  • Peer-to-peer loans: These loans link you with individual investors via a lending platform, often leading to better interest rates and flexible terms.
  • Startup loans: Designed for new businesses, these loans provide the funds you need to get started and support initial growth.
  • Secured loans: These loans require collateral, such as a property or equipment, but you'll usually benefit from lower interest rates.
  • Unsecured loans: No collateral needed here, but expect higher interest rates since the lender is taking on more risk.
  • Short term loans: Great for quick financial needs like restocking inventory or covering a temporary cash shortfall, and typically paid back within a year.
  • Long term loans: These are for bigger investments and are paid back over several years.
  • Line of credit: This flexible financing option gives you a pool of money you can dip into when needed, perfect for smoothing out cash flow or handling unexpected costs.

Are there government business loans?

During the pandemic, the government offered several loan schemes to help businesses, such as the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and the Recovery Loan Scheme (RLS).

On 1st July 2024, the Growth Guarantee Scheme (GGS) came into effect and will be available until March 2026. This scheme provides access to 70% government backed finance for loan amounts up to £2 million. Capitalise works with a number of lenders accredited for GGS so that you can explore your options for a government backed loan. Contact us now to discuss how we can help your business secure a Growth Guarantee Scheme

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Check your business credit score before applying for funding

✅ Know your business credit score 

✅ Understand the factors impacting it

✅ Alerts on risks to your profile

✅ All features from as low as £19/month

Platform to track your business credit score

How to choose a business loan?

The right loan for you will depend on your business activities, how much money you need, and whether you have any assets for collateral. Carefully calculating the amount you borrow is important to avoid financial problems in the future. This can be done by reviewing your financial forecasts and budgets.

By taking the time to do this, you can make sure you are borrowing an appropriate amount. This will help you manage your finances more effectively and avoid potential difficulties down the road. You can use our business loan calculator to help make a well-informed decision and see how much you could afford to borrow. 

female business owner

What are the requirements to get a business loan?

The requirements to get a business loan will depend on the loan type and the lender you apply to.

Typically, to qualify for most business loans, you’ll need:

  • A business incorporated in the UK
  • A good business credit score
  • Sometimes, collateral to secure the loan.

You’ll also likely need to provide documentation as part of your application, this usually includes:

  • Annual financial statements if available 
  • Sometimes collateral to secure the loan.
  • Business bank statements

Business loan calculator: calculate repayments

Understanding what your monthly payments could be and the total cost of a business loan is easy with our business loan calculator. You’ll be able to instantly see how much you'll need to pay back, helping you plan and manage your finances effectively. Simply enter the amount you wish to borrow, the interest rate, and the term of the loan. The calculator will provide you with a detailed breakdown of monthly repayments and the total interest payable over the life of the loan. This tool is designed to give you a clear picture of your financial commitments before you decide to take out a loan and help you understand how much you could borrow. 

What do you need the funding for?

Funding for covering costs e.g. tax or payroll. These are typically unsecured loans.

For how long do you want to pay back your loan?

£ 25,000

Interest rate

Typical business loans to cover costs range from 7% - 16% APR depending on the duration, amount and lender.

Loan breakdown

Loan amount

£ -

Total interest amount

£ - 11% APR over a 3 years

Total repayable

£ -

Total monthly repayment

£ - / month

Interest rates and fees: what to expect

When you apply for a business loan, lenders will usually assess the creditworthiness of the business by looking at the business credit score, the business’ financial history, profitability and any assets owned. 

This evaluation helps the lender to determine the risks associated with lending to your business and determine what rates they offer. 
Some business loans will also include an initial arrangement fee, or early repayment fees.

These fees will always be outlined in the full loan agreement if you receive an offer. Working with a broker, like Capitalise, can help you understand all costs involved, so you’ll know exactly what to expect. We’ll work with you to ensure there are no surprises. 

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Apply for a business loan with Capitalise

frequently asked questions

Capitalise is a UK based platform, our mission is to help businesses to take control of their financial health. We support business owners through our FCA regulated platform, an easy way for businesses to access over 100 lenders and compare their loan products. Our advanced platform makes intelligent matches and ranks lenders, based on their past successes, to help businesses select the best funding solution.

Capitalise also enables businesses to check their own Experian business credit score to better understand their financial health. Plus businesses can check the credit profiles of the companies they work with to reduce risk.

The eligibility criteria for a business loan will depend on a number of factors, for example the type of loan you’re looking for and the lender you apply to. 

Lenders usually have a basic set of requirements to limit their risk. So, most will want to see:

  • A strong business credit score
  • At least six months of trading history

Depending on the loan, you might also need to show a certain monthly income or own valuable assets.

With a Capitalise for Business account, you can check if you're eligible for a business loan for free. 

A business loan can be used for a variety of purposes to support and grow your business. Here are some common uses:

  • Expansion into a new premise
  • Helping with cash flow management
  • Hiring and training employees
  • Marketing and advertising
  • Consolidating debt 
  • Purchasing inventory
  • Investing in new equipment.

Essentially, you’ll be able to use a business loan for any purpose, as long as it relates to the business’ needs and not for personal purposes.
 

Deciding to take out a loan to grow your business comes down to a few key points. First, you could look at how your business is doing financially and consider if it can handle the cost of a new loan? 

You can also think about what you’ll use the loan for, like buying new equipment or stocking up on inventory, and whether this will help you make more money.

For many businesses, a business loan is a great way to accelerate growth. But it’s important to consider your own individual circumstances to decide if it’s right for you. 

To qualify for a business loan from a UK lender, your business must be based in the UK. 

The amount you can borrow depends on factors such as your business's financial health, revenue,the strength of your business credit score, and the lender's policies. Use our Business Loan Calculator to estimate how much you can borrow, the total loan cost, and your monthly payments. This will help you to get an idea of how much you can afford to borrow. 

Capitalise gives you access to 100+ UK lenders so you can compare the best rates. With support from our team of funding specialists, you can get the best business loan rates available to your business. 

Compare business loans.

You can still get a business loan with bad credit, but it might be hard to get an unsecured loan. Options are available for businesses with bad credit, as some lenders will look at other factors, such as your assets or debtor book. At Capitalise, we work with over 100 lenders to help you find an option for your business. 

Yes, you can often repay your business loan early. If you can afford to do so, it can be a wise decision as it allows you to save money on interest. However, it's important to first check the details of your loan agreement. Some lenders may impose early repayment penalties, so you'll need to assess whether the interest savings outweigh the penalty fee.