Small Business Loans Sheffield

If you’re a business owner in Sheffield looking for a small business loan to cover cashflow, pay your VAT,  buy stock and raw materials, or give you the financial boost to expand, you’ll be spoilt for choice.

There are many types of business loan available and for every type of purpose. Read on to find out all you need to know about:

  • Sheffield small business loans
  • Sheffield business grants
  • Alternative business financing options
  • The credit score you’ll need
  • Applying for a business loan

What types of business loans are available in Sheffield?

There are many types of business loan available in Sheffield. Some have specific purposes, such as paying franchise costs, while others can be used to cover any type of business need. Depending on the loan you choose, you may be required to provide security, such as property or other hard assets. 

Working capital loans

Working capital loans pay for everyday expenses – things like wages, energy bills, inventory and more. Depending on the type of loan, added security may be required.  Working capital loans for Sheffield SMEs include:

Small business loan

Small business loans work like traditional bank loans. Borrow from £1,000 to £500,000 and pay the loan back in just a few months or over several years. Security may be required.

Invoice finance 

Instead of waiting 30, 60, 90 days or more, release the cash tied up in your outstanding invoices as soon as you issue them. You retain control of your sales ledger, and your clients need not know you are using your invoice to raise funds. No added security required.

Revolving line of credit 

A revolving line of credit works like a standard bank overdraft. You simply draw down funds from an agreed credit limit as you need them and then pay the funds back as revenues come in. Security may be required.

Merchant cash advance

Businesses that accept customer credit and debit cards can borrow against the value of their card sales. No security is required. Best of all, as you card sales increase, so your borrowing limit goes up.

Business credit cards 

Business credit cards work the same as personal credit cards, but they usually come with a higher credit limit and lower interest rates. Security may be required. 


If you’re seeking to start a new business in Manchester, you may obtain a startup loan. This is seed money to get a new venture off the ground. As well as private sources, Government funds are also available for this type of loan. Security may be required.

Loans to cover expansion costs

Development and bridging loans can be used to cover the costs of business expansion. Use the funds to pay for refurbishments and extensions to your operating premises. You may be able to borrow up to 90% of the project cost and repay the loan over 1 – 30 years. The property typically acts as security and there is no need to provide extra collateral.

Buying assets such as vans, and heavy machinery

Big ticket items such as vehicles and plant do not come cheap and buying them with cash can put a major dent in your cashflow. However, asset finance can cushion the blow. Buy vehicles, plant, and machinery over time and use the assets to build your business as you pay back the loan. In most cases, the asset acts as security for the loan and there is no need to provide extra collateral.

Franchise finance

When buying into a franchise group 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 very expensive, and franchisors rarely offer funding to cover joining and startup costs. A franchise loan allows you borrow from £1,000 to £5million to get you on the franchise ladder. Security may be required.

VAT loans

Late payment of your VAT bill can leave Sheffield SMEs facing penalties and interest. However, VAT loans are designed to help you pay the taxman on time. Avoid penalties and boost your business cashflow. The lender pays HMRC direct. Repay the loan over 3, 6, 9, or 12 months.

Commercial mortgage

Securing a commercial mortgage in Sheffield can provide businesses with the necessary funds to purchase commercial property or land within the city. Unlike unsecured business loans, which have a maximum limit of £250,000, commercial mortgages are more appropriate 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 interested in obtaining a commercial mortgage in Sheffield, our team of experts specialise in providing tailored advice and can help you identify the right loan product for your business. Get in touch with us today to learn more.

How do I find a business grant in Sheffield?

Business grants are a direct cash injection into your business. They are not loans and they do not need to be repaid. Additionally, although business grants are typically slow to secure and may come with restrictions on their use, they do not require security. 

Find a Sheffield business grant at: 

What alternative business financing options are there?

As well as the loans and grants detailed above, there are alternative ways to finance your business. However, these options vary in scope, restrictions, and the level of lender participation. Therefore, it’s important to do your research before making an application.

  • Venture capital: Private 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 investment: Capital for businesses, including startups, usually provided in exchange for convertible debt (a loan that can be converted to shares), or shares in the business.
  • Microloans: Very 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.
  • Crowdfunding: Fund 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 business loan in Sheffield

To speed the application process, have the following information ready before you apply:

  • Last 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. (If you are unfamiliar with this, you should consider hiring a business advisor to help produce your plan).

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 to get a business loan?

The credit score you need to qualify for a business loan in Sheffield will vary depending on the lender and type of loan. Typically, a score over 600 will be required to get approval. 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 Sheffield?

Typical interest rates on business loans in Sheffield range from 4% to 15% APR. Rates will vary depending on the lender, the type of loan, and your financial situation.

How long does it take to get funds?

Some loans can provide funds within a couple of days, others (such as development loan), can take much longer. One to three weeks to receive your funds is typical, but the timing will vary from lender to lender and the type of loan you choose.

How to find the right small business loan in Sheffield

There are many types of small business loan, with differing rules of application. Sheffield business owners 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 Sheffield.

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.

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