ABOUT BUSINESS LOANS
WHAT IS A BUSINESS LOAN
A business loan is any kind of loan offered to a commercial entity, rather than an individual person and can range from as little as £1,000 up to several million. They are normally obtained on an unsecured basis and can be used for a variety of purposes i.e., to cover ongoing running costs, buy stock, increase staff or perhaps purchase new premises.
The cost of repaying the loan (repayment schedule) and the duration over which it is paid (term) can vary from one month to 10 years, depending on the type of loan and the lender. The loan rates will depend on a number of considerations ranging from but not limited to the amount required, the term of repayment and the business’ ability to repay the loan (affordability).
Traditionally, business loans have been issued by the business’ bank, however, there are now many other UK lenders who are able to provide more flexible finance in terms of the repayment schedule and the duration (term) of the loan period.
HOW WE CAN HELP
TYPES OF BUSINESS LOANS
NO ASSETS TYPICALLY REQUIRED
UNSECURED LOANS
HOW IT WORKS
BEST SUITED FOR
MANUFACTURING
TRANSPORT & LOGISTICS
CONSTRUCTION
AGRICULTURE
ASSETS REQUIRED AS COLLATERAL
SECURED LOANS
Secured business loans require physical assets, such as property, machinery, or invoices, to guarantee the financing. Because these assets lower the lender’s risk, businesses can typically unlock larger funding amounts and secure more competitive interest rates.
HOW IT WORKS
You borrow a lump sum of cash by leveraging the value of your business assets as security. If the business fails to repay the loan according to the agreed monthly schedule, the lender reserves the right to seize and sell those specific assets to recover the debt.
BEST SUITED FOR
PROPERTY DEVELOPMENT
HEAVY MACHINERY
DISTRIBUTION
FOR LARGER ESTABLISHED BUSINESSES
COMMERCIAL
Commercial loans fund the purchase, upgrade, and maintenance of vital physical assets like machinery, property, and technology. This structure supports major capital investments, including extensive equipment repairs and the construction of entirely new business premises.
HOW IT WORKS
Funding is delivered as a lump sum with repayment terms spanning 1 to 5 years, though major projects can extend up to 25 years. Because rates and schedules vary significantly, businesses should evaluate alternative options like Asset, Real Estate, or Invoice Finance before committing.
BEST SUITED FOR
MANUFACTURING
INFRASTRUCTURE
ENTERPRISE
ULTIMATE CASH FLOW FLEXIBILITY
REVOLVING FACILITY
A revolving loan facility gives your business continuous access to a pool of funds that you can draw down, repay, and withdraw again as needed. Unlike a rigid term loan, this structure adapts dynamically to your day-to-day operational capital demands.
HOW IT WORKS
You withdraw funds up to an approved limit, repay what you use, and immediately regain access to that credit line without re-applying. Because this is a highly flexible tool rather than a fixed-term loan, lenders often use variable interest rates that can fluctuate over time.
BEST SUITED FOR
RETAIL INVENTORY
SEASONAL BUSINESSES
FAST-GROWTH STARTUPS