Business Loans

The process is simpler than most people think. First, work out how much you need and what for, lenders want a clear purpose. Then pull together your basic paperwork: last 2-3 years accounts if you have them, recent bank statements, and management figures. A broker will then match you to the right lender, submit the application, and handle the back-and-forth. Most straightforward business loans complete within 1-4 weeks, some unsecured loans fund within 48 hours.

Through the alternative lending market rather than the high street. Specialist lenders look beyond the credit score at the business today, its cash flow, and its ability to service the debt. Minor adverse credit, COVID-era issues, or an old CCJ doesn’t automatically rule you out. Being upfront about your credit history from the start is crucial, it helps a broker target the right lenders first time rather than leaving a trail of declined applications on your file.

The two main routes are the British Business Bank Start Up Loans scheme (up to £25,000 per founder, fixed rate, government-backed), and asset-backed or secured lending where security covers the lack of history. Personal guarantees are almost always required for startups. If there’s a homeowner in the family willing to support, a loan secured on their property often unlocks more. Mainstream unsecured business loans without any trading history are very rare.

A business loan is cash into your account that you can spend on anything, repaid over an agreed term. Asset finance is specifically tied to a piece of equipment, vehicle, or machinery, the lender owns or has security over the asset itself. Because the asset acts as security, asset finance is often easier to get approved, cheaper, and accessible to newer businesses. The rule of thumb: if you’re buying a specific identifiable item, asset finance usually beats a business loan. If you need flexible cash for mixed purposes, a business loan is better.

Yes, unsecured business loans are widely available, usually for smaller amounts and shorter terms. Lenders will typically base the decision on trading history, turnover, profitability, and director credit. Even on an ‘unsecured’ loan, lenders almost always require a personal guarantee from the directors. Larger loans (usually above £150-250k) almost always require security, whether that’s property, debtors, or other business assets.

Typically up to about one month’s turnover for fast unsecured lending, sometimes more if the business is profitable and well-established. For larger amounts, you’ll usually need to provide security, or accept a longer underwriting process with a traditional lender. Anything above £150,000-£250,000 on an unsecured basis is unusual unless the business is strong and mature.

Pretty much any legitimate business purpose. The most common uses we see are working capital, stock purchase, paying a VAT or tax bill, hiring staff, marketing spend, premises costs, equipment, and funding expansion. Lenders do expect a clear purpose, ‘general business use’ is fine, but ‘I need £50k’ without more context is harder to underwrite.

Unsecured business loans can fund within 24 to 48 hours once paperwork is in. Larger or secured loans typically take 1-4 weeks depending on how quickly valuations, legals, and underwriting can be completed. Having your accounts, bank statements, and ID ready speeds things up considerably, most delays are paperwork, not underwriting

Business loan rates vary widely, typically from around 7% for well-secured loans up to much higher for higher-risk or short-term deals. The rate depends on the lender, term, security offered, and trading history. Business loan rates will usually be higher than residential mortgages because the risk to the lender is higher, that gap is normal, not a rip-off.

Some lenders allow early repayment with no penalty, some charge a fee, some charge interest up to a minimum period. This is one of the areas where going through a broker helps, we’ll flag early repayment terms upfront so you’re not surprised later. If flexibility matters to you, say so at the start and we’ll focus on lenders with flexible redemption terms.

As a baseline: last 2-3 years of filed accounts (or projections if you’re newer), last 3-6 months of business bank statements, management accounts if you have them, director ID and proof of address, and details of any existing borrowing. For secured loans, you’ll also need property or asset details. Having everything ready in advance typically halves the time to completion.