Small Business Loans Birmingham

No matter if you’re seeking to expand production, start a business, pay taxes, cover cashflow, or buy vehicles, plant and machinery, there’s a small business loan for you.

Swoop Birmingham

Local Business
4.9 40 reviews
At Swoop we are keen to provide our customers with the best possible range of funding and savings solutions to help them protect the financial health of their businesses, whilst removing all of the jargon and empowering businesses to grow.
phone 0203 514 3044
location_on Suite 109, Somerset House, 37 Temple Street, Birmingham, B2 5DP
schedule open Monday to Friday, 08:30 am - 05:30 pm

Borrow from just a few £thousand all the way up to £5million, repay in weeks, or months, or years. 

Read on to discover all you need to know about small business loans in Birmingham:

  • Birmingham small business loans
  • Birmingham business grants
  • Alternative business financing 
  • The credit score you need
  • How to successfully apply for a business loan in Birmingham

What small business loans are available in Birmingham?

Business loans in Birmingham come in all shapes and sizes: 

Expansion loans

Development and bridging loans can make dreams to expand your business become a reality. Refurbish or extend your current operating facilities. Borrow up to 90% of the project cost. Repay over 1 – 30 years. The property acts as security. In most cases there is no need to provide extra collateral.

Start a small business

Entrepreneurs seeking to launch their own small business in Birmingham may get a financial boost with a startup loan – secure those difficult-to-find seed funds to get a new business up and running. Government funds may also be available for this type of loan. 

Buy vehicles, plant, and machinery

Asset finance can take the sting out of buying big-ticket business items, such as vehicles, plant and machinery. Buy over time and use the equipment as you pay for the equipment. The asset acts as security for the loan. In many cases, there is no need to provide extra collateral.

Working capital loans

Working capital loans can be used to pay wages, cover fuel bills, buy inventory and more. Depending on the type of loan you choose, added security may be required. 

Working capital loans for Birmingham SMEs:

Type of loanDetails
Small business loanWorks like a traditional bank loan. Borrow from £1,000 to £500,000.
Invoice financeRelease the cash tied up in your outstanding invoices.
Revolving line of creditWorks like a bank overdraft. Dip into the available funds as and when you need them. Pay back from incoming revenues.
Merchant cash advanceFor businesses that accept credit and debit card payments. Borrow against your card sales, the higher they are, the more you can borrow.
Business credit cardsWork like personal credit cards but are held by the business instead of an individual. Usually come with a higher credit limit than personal credit cards. Can be more costly than other forms of small business loan.

VAT loans

Slow paying customers can leave Birmingham business owners battling to pay their VAT bill, making them vulnerable to penalties and interest. VAT loans can be used to pay the taxman on time, avoiding penalties and allowing businesses to hold on to their available cash much longer. The lender pays HMRC direct. Repay the loan over 3, 6, 9, or 12 months.

Franchise finance

Buying into a successful franchise can be a good idea – you become part of a well-known brand, enjoy centralised marketing support, and have easy access to products and equipment. However, joining a major franchise group can be costly, and few franchisors offer funding to soften the financial blow. An independent franchise loan can solve this problem. Borrow from £1,000 to £5million. Repay over months or years. Additional security may be required.

Commercial mortgages

Acquiring a commercial mortgage in Birmingham can provide businesses with the necessary capital to purchase commercial property or land within the city. Unlike unsecured business loans, which have a maximum limit of £250,000, commercial mortgages are better suited for businesses requiring financing between £50,000 and £25,000,000.

Similar to a residential mortgage, the borrower typically obtains the loan amount from a bank or specialised lender and repays it through monthly instalments over a fixed term with added interest. However, the property or land value is usually higher with a commercial mortgage than with a residential mortgage.

If you’re considering obtaining a commercial mortgage in Birmingham, our team of experts specialise in providing tailored advice and can help you identify the right loan product for your business. Contact us today to learn more.

How do I find a business grant in Birmingham?

Business grants may take longer to secure than a loan and may come with restrictions on their use. However, unlike business loans, business grants do not need to be repaid or require security. 

Business grants in Birmingham may be found here: 

What alternative business financing options are there?

Alternative business financing options include venture capital, angel investment, microloans and crowdfunding. Structure, costs, and lender participation will vary with each option, so it is important to conduct your own research before you start an application.

Type of loanDetails
Venture capitalPrivate equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have high growth potential, or which have already demonstrated high growth.
Angel investmentCapital for businesses, including startups, usually provided in exchange for convertible debt (a loan that can be converted to shares), or shares in the business.
MicroloansVery small loans to borrowers who typically lack collateral, steady employment, or a verifiable credit history. Designed to support entrepreneurship. Also includes Peer to Peer loans, where private individuals provide funds directly to small businesses or other individuals. Interest rates on microloans can be more expensive than other types of borrowing.
CrowdfundingFund a project or venture by raising money with many small donations from a large number of people, typically via the internet. Funds raised are not a loan and do not need to be repaid as long as you use them for the purposes described in your presentation.

How to apply for a loan in Birmingham

Applications for most small business loans will typically require the following information:

  • Most recent three-years bank and tax records. (Business account for established businesses,  personal account for entrepreneurs launching a new small business).
  • Cashflow forecast.
  • Profit and Loss Statement and recent Balance Sheet. (Established businesses).
  • Details of any existing debt.
  • List of major customers and suppliers.
  • List of any assets, such as property or inventory.
  • Business plan – as detailed as possible.

Top Tip: Some lenders may ask for a personal guarantee by the business owners or directors to secure the loan. If they do, they will check their personal credit scores. Don’t get caught out by an error on your credit report, always check your business and personal credit scores before you apply.

What credit score do I need?

As well as your business credit score, some lenders will review your personal credit report. The credit score you need to qualify for a business loan in Birmingham will vary depending on the lender and type of loan. Generally, you will need a score of at least 600 in order to be approved. However, even if you’ve been turned down elsewhere, or have bad credit, it may still be possible to secure the funds you need.

What are the typical interest rates for a business loan in Birmingham?

Typical interest rates on business loans in Birmingham range from 4% to 15% APR and vary according to the type of loan you choose.

How long does it take to get funds?

The length of time from application to receipt of funds varies from lender to lender and the type of business loan you choose. Some loans can provide funds within a couple of days, others can take much longer. In most cases, you should allow one to three weeks to receive your funds.

How to find the best small business loan in Birmingham

There are many types of small business loan, with differing rules of application. Birmingham SMEs seeking funds may find themselves forever searching and making applications to lender after lender. The delays this can create could cause you to lose revenues and leave your business vulnerable to the competition. Instead, working with a broker, who can access small business loans from a wide range of lenders is a better way to go. No more cold calls and endless demands for information, simply tell us what you need and leave the rest to us. 

Get started with Swoop

Give your business the funds it needs to thrive. Register with Swoop to find the best rates, the best terms and the best small business loans in Birmingham.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.


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