Compare business loans
We'll compare hundreds of business loan providers, to find the right finance for your business
Minimum turnover is £100,000 with 1 year trading
This service is provided by our trusted partner Think Business Loans. They are a credit broker and not a lender. Rated 5* 'Excellent' on Trustpilot.
Coronavirus update:
We can help with the recovery Loan Scheme. Our comparisons will include RLS funding where available.
We compare a vetted panel of trusted UK business finance lenders
Business loans explained
When you're setting up or growing a business, loan finance can be very useful to help with the costs.
A business loan is different from a personal loan in that you will need to provide information about your business, its turnover, and its profit.
Business loans can be for the short term or the long term, but all involve paying a set amount of interest on a lump sum borrowing amount.
Different loans are available for different circumstances. So it helps to have a clear idea of exactly what you need the money for before you compare business finance loans.
What is business finance?
Business finance is a catch-all term that covers a range of funding options open to businesses of all sizes, including business bank accounts, overdrafts, loans, commercial mortgages, and everything in between.
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Do I need a business loan?
Like any form of borrowing, business finance comes with costs. Therefore, it's important to think carefully about whether you need a business loan, or whether you could find alternative ways to start up your business or fund your business expansion.
If you only need to borrow a small amount of capital, for example to buy computer equipment for your business start-up, then you may find a business bank account overdraft or credit card borrowing are more flexible ways of borrowing money for your business.
However, if you need a lot of money for expansion, or you need to hire staff for your start-up, then you may end up needing to take out a formal business loan.
Bear in mind that you need to have a repayment plan, and your business also needs to have a good credit rating. The better your business credit rating, the more attractive the loan rate is likely to be when your business loan application is approved.
Securing a business loan
Put simply, there are two types of loan – secured and unsecured.
What are the different types of loan?
Put simply, there are two types of loan – secured and unsecured.
Secure loans
Secure borrowing means that you are borrowing against an asset – this might be a business premises, or even your own house if you are a very small business.
Your property could be repossessed if you do not keep up with repayments on a secured loan. Therefore, although interest rates are generally lower on secured loan, you're taking a greater share of the risk.
Unsecured loans
With an unsecured loan, the money isn't borrowed against an asset, but is based on your business or personal credit rating. The lender is taking a greater share of the risk and therefore the overall interest rate on this type of borrowing is likely to be higher.
How do I find a business loan?
If you already have a business bank account with a bank or building society then they may offer you a business loan.
However, this might not necessarily be the cheapest option. By shopping around you could find a better deal from an online bank or alternative lender.
Uswitch has partnered with Think Business Loans to provide our business finance comparison service. Think is part of Bionic, the UK’s leading business switching service. We’ll work with high street banks, challenger banks and alternative lenders to match you with the right business finance solution.
Before you start shopping around for a business loan it helps to be clear about why you need to borrow the money, how much you need to borrow, how long you will need to repay the loan, how much interest you can afford and what type of business loan you will need.
Business start-up loans
Every business needs money to get off the ground, but it can be difficult to find funding when you’re a start-up, as lenders have no way of knowing how your business handles credit or even if it’s viable.
In this instance, it’s worth looking into the government’s Start Up Loan scheme, which provides access to unsecured personal loans and offers free support and guidance to help write your business plan. If your application is successful, you’ll also be eligible for up to 12 months of free mentoring.
Other forms of business loans
Asset finance – This is a type of secured finance whereby you borrow money against the value of any assets your business has.
Working capital - This is a type of short-term loan used to help with cashflow and other day-to-day running costs.
Bridging loans - Most often used in property and development projects, this short-term funding option can cover the costs while you wait for funds to clear from the sale of property or an asset.
Commercial mortgages – This is a long-term loan used to help fund the purchase of a business property.
Peer-to-peer loans – Also known as P2P loans, this is when your business borrows money from investors, instead of a bank.
Invoice finance - Often used to help with cashflow, this is when a lender buys your unpaid invoices and provides you with a percentage of its total value.
How do I find a business loan?
If you already have a business bank account with a bank or building society then they may offer you a business loan. However, this might not necessarily be the cheapest option. By shopping around you could find a better deal from an online bank or alternative lender.
Uswitch has partnered with Think Business Loans to provide our business finance comparison service. Think is part of Bionic, the UK’s leading business switching service. We’ll work with high street banks, challenger banks, and alternative lenders to match you with the right business finance solution.
Before you start shopping around for a business loan it helps to be clear about your needs:
why you need to borrow the money
how much you need to borrow
how long you will need to repay the loan
how much interest you can afford
what type of business loan you will need
Explore related products
What's the cheapest way to borrow money?
If you're looking to borrow money and keep the costs down you could choose a loan with a low interest rates or a credit card with 0% interest.
What happens if I can't repay my loan
If you can't repay your loan, you will get a default notice warning you that if it happens again you could be referred to a collection agency or taken to court.
Loans explained: all you need to know
We have brought together all you could ever need to know about loans in this one-stop-shop guide.
