Typically up to 25% of your annual turnover, or £10,000-£50m (from start-up to commercial)
1-5 years (5-20 years for a commercial loan)
Varies according to lender, your business profile, amount and whether fixed or variable rate (e.g. from 7-30%)
There are different loans to suit your situation, from start-up to established
A traditional business loan is a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. Lenders include high-street banks, challenger banks, online lenders and small local specialists. There are many different types of loan but the two overall categories are secured loans and unsecured loans.
Business loan is a broad category, and can refer to lots of different products including:
Within these different types of business loan – of course there is some overlap between them – you’ll find some that better suit your particular situation, e.g. you might be looking for start-up finance, equipment finance or working capital finance.
Depending on how long you think you’d take to repay the loan you can consider:
There is a huge range of lenders offering loans to businesses, and they all have different eligibility criteria, application processes and interest rates.
It’s often possible – though more challenging – to get a business loan if you have a poor credit rating. You may need to offer security or a personal guarantee.
It’s worth noting that if you take out a short-term loan you’ll pay higher interest, but you may pay more interest overall with long-term financing, because you’re borrowing for a longer period of time.
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