Business Loans UK
Business Loans – Get £5k-£750k In 24 Hours
If you’re looking to raise funds for your business, you could take a secured or unsecured business loan. Get the best deal with ABC Finance.
Over 30,000 loan-seekers helped
5* Rated Business Loan Broker
Receive your funds in as little as days
Market-leading interest rates
Experienced Business Loan Advisors
No Broker Fees
Author: Gary Hemming CeMAP CeFA CeRGI CSP
20+ years experience in business loans
Our business loans allow you to borrow funds to enable your expansion plans, increase stock or simply boost your business business cash flow.
We make it easy to apply for a business loan, and our team of experts have access to the leading lenders in the loan market allowing us to compare options and find you the best deal quickly.
We offer the personal touch and review your business loan application to ensure we find the perfect deal for you.
Key Features
Loan Size
From £5,000 to £750,000
Interest rate
Rates from 5.5% - fixed rate or variable
Types
Unsecured or secured loans
Term
3 months - 72 months
Completion timescale
From 24 hours
Eligible borrowers
UK businesses - England, Wales, Scotland & Northern Ireland
Will I be eligible for a business loan?
To be eligible to apply for a loan with ABC Finance you must meet the following business loan criteria:
- Have a UK based business
- Have been trading for 6 months or more
- Be based in the UK
We can consider applications for business loans from all types of applicants. As we work with multiple business loan lenders and offer many different types of business finance, we can find a suitable option for most borrowers.
How to apply for a business loan
To apply for a business loan, talk to our team to find the best deal for your business. They will present the options loan available to you.
Once you’ve chosen a product, the lender will assess your business loan application and issue an agreement in principle that is personalised to your business.
You will complete the application form and send them any supporting information required for underwriting.
Once the underwriting process is complete, you get your loan offer, which you sign and return.
Your business loan application is complete and your funds are sent to your business bank account.
Business loans can be completed and the money in your account in as little as 24 hours, especially unsecured loans to a British business, so the application process is very simple.
Why work with ABC Finance?
At ABC Finance, we’ve been helping clients – from small business owners through to large organisations – take out business loans and manage their company finances since the year 2000.
We’ve helped over 30,000 loan seekers and work closely with each client to help them find the perfect solution.
Technology is key to how we operate and we use it to streamline our processes and make it easier for our clients to secure the funds they need to make their business thrive. For this reason, we're able to secure a business loan for our clients extremely quickly.
Whether you’re ready to apply for a business loan, or just looking for advice, our team of experts are on hand to help.
How to get started
To get started with your business loan application, fill out our form to get a quote.
One of our business loan experts will then be in touch to find out more about what you need and will look to get your loan application approved straight away – usually within 1 hour.
Once approved, we just need a few simple documents and then we’ll be able to focus on getting your business loan funds released in a quick manner. In most cases, we just need:
- A copy of your business bank statements (PDF’s from your online banking are accepted)
- Financial details for your business
- Some personal details about the business owners
Our business loan process is really simple and we’ve streamlined it further to make sure we can get your funds released quickly. If your business could benefit from a cash injection, get in touch today.
UK Business loan uses
A business loan can be used for almost any purpose. Common uses include the following:
Purchasing equipment
For companies in many industries, having up to date equipment is crucial to the success of your business. In this case, a loan can provide the funds needed to secure new equipment to take your business to the next level.
Funding business growth
When businesses grow, cashflow can become tighter than you’d like. Here, a loan could inject fresh working capital into your bank to fund the hiring of new staff, a big marketing campaign or simply to smooth your business cashflow.
Pay the amount owed on a due bill
When you’re facing a shortfall and find yourself unable to pay an upcoming bill, we can arrange a fast business loan to get funds into your account quickly. Whether you’re unable to pay a tax bill, wages, rent or an unexpected bill, we can arrange a business loan to help.
Purchasing stock
Increasing your stock can help to increase your turnover quickly. Either a traditional loan or a flexible, revolving credit facility could provide a fast cash injection for your business.
How do business loans work?
Business loans work on a similar basis to personal loans. The lender releases the full amount borrowed to your business bank account once the loan application process is complete.
Once the funds are in your account, you’re able to spend them as needed, or even hold onto them if the idea is to give yourself a cash buffer.
In line with your loan agreement, you usually make monthly repayments for the agreed loan term until it is repaid in full. While some business loans offer alternative payment structures, monthly repayments are the most common.
What are the alternatives to a business loan?
If you’re looking to raise finance for your business but aren’t sure which product is the most suitable, it’s important that you consider the alternatives before you commit. The key alternatives are to a business loan are:
Invoice finance
Invoice financing allows you to release funds from your unpaid invoices. It can be broken down into 2 different products, invoice factoring and invoice discounting.
Invoice finance may be easier to qualify for as it is based on the financial strength of your customers, rather than your business credit score.
Invoice finance is a form of ongoing, revolving credit, and therefore works differently to traditional business loans.
Merchant cash advance
A merchant cash advance allows you to borrow against your future card terminal receipts. They’re a very fast way of borrowing money and are popular with businesses that take a lot of debit card and credit card payments such as shops, restaurants and pubs.
Unlike business loans, merchant cash advances use only your card receipts to decide your maximum borrowing, rather than your total company turnover.
Commercial mortgages
Commercial mortgages, also known as business mortgages are mortgages against business premises. For those who own their business premises, these mortgages may allow you to borrow larger amounts than would be possible using a business loan.
While the representative APR tends to be lower than is on offer with business loans, applications take a lot longer than a small business loan as eligibility criteria is stricter. In addition, a legal charge must be taken over the security property and more detailed underwriting is required.
Asset finance
Asset finance works in much the same way as a business loan, in that it allows you to secure an asset, or multiple assets without having to pay for it in full upfront.
Asset finance can be set up similar to a loan, or as a leasing arrangement. The key difference is your business assets are used as collateral, and as such, may be at risk, should you fall behind on your repayment schedule.
Business overdraft
An overdraft is a simple product that offers you a financial buffer should your bank balance hit zero. They're a simple form of lending that sits alongside the bank accounts at your business bank.
Business overdrafts are a form of revolving credit that work well to provide a temporary cash flow buffer where funds will be required and repaid quickly. When funds are drawn for a long time, they do tend to become expensive and longer term debt, such as an unsecured business loan should be considered at a better interest rate.
How to choose the right product for your business
To find the right business finance product, the first step is to understand your business and its needs.
For example, considering how much money you need to borrow, how long you would like to pay it back over and whether you want to repay it in full, or retain the ability to borrow over time.
This will help you to narrow down your options to those most suitable for your business needs.
If you’re struggling to find the right product or would like help, then our experts are on hand to consider options from across the market and make recommendations on the best option.
At ABC Finance, we like to work closely with our clients, making it easy to manage the financial side of their businesses.
We don't just offer business loans - we can assess multiple products for you to find the perfect solution for your company.
How To Apply For A Business Loan
Talk to our team to find the best business loan deal. They will present the options available to you.
Once you've chosen a product, the lender will assess your application and issue an agreement in principle.
You will complete the application form and send them any supporting information required for underwriting.
Once the underwriting process is complete, you get your offer, which you sign and return.
Your business loan application is complete and your funds are sent to your bank account.
abcfinance.co.uk
The pros and cons of business loans
Taking out this type of loan can drive an SME to the next level. But there are a number of pros and cons to consider before taking the plunge.
Pros
Fast and Flexible
Times have changed, and the major banks are no longer the go-to option for business loans. Most specialist lenders have online portals that let you know your chances of being accepted upfront, and loans usually complete in or around five days.
Funding Is Becoming More Widely Available
Loans are much easier to come by than they once were. Across the alternative finance market, there are more business loan products than ever. There is a good chance that one of those options will give your business the funds it needs.
Low Interest Rates
Business loan interest rates from specialist lenders are far lower than they have been historically, with rates starting from as low as 5.5%.
A Cash Injection Can Provide A Big Boost To A Business
A cash injection from a business loan can free up the funds needed to take your business to a new level and dramatically increase your profits.
Cons
Funding Is Harder To Come By For Start-ups
For established businesses, funding is becoming more widely available. But for start-ups, the application can be time-consuming and difficult. Funding is available but be prepared to provide a lot of information in order to be successful in securing business loans.
Personal Guarantees
The lender will usually require a personal guarantee, which means that you will personally be liable if the business defaults. Although personal guarantees can be insured, there is a cost associated with this, which drives up the costs of any business loans that your company takes out.
Frequently asked questions
What is a business loan?
Business loans are a form of commercial finance product that are usually issued on an unsecured basis, these are known as unsecured business loans.
Business loans have traditionally been issued by the business’ own business bank. But, there are now numerous specialist lenders, who offer faster and more flexible finance.
The team at ABC Finance Ltd are on hand to find the lowest business loan rates for your company. We are passionate about supporting SMEs in the UK and want to save you time and money. Our service is totally impartial, and we recommend the most suitable products for you.
Will I need to give a personal guarantee?
Yes, in almost all cases, a personal guarantee is required when taking out a business loan. Where required, the PG is signed by the people behind the business, such as a Director or Shareholder.
While a personal guarantee will be required, this can be offset slightly by taking out personal guarantee insurance. This type of insurance policy is designed to pay out should your PG be called upon in the event that a business loan falls into default.
A PG may not be required for some smaller business borrowing, but this is judged on a case by case basis.
How long does it take to get the money?
We can get you a business loan in as little as 24 hours and get you pre-approved in as little as 1 hour.
That said, in most cases, it’s a good idea to choose a lender who takes a little longer to complete, but will offer a much better deal.
The difference in cost between lenders can be vast, so if funds aren’t required urgently, taking time to find the best deal can be a wise investment. All institutions have their own way of processing a business loan application and their own standards around credit checks, accounts, business account health and existing funding lines such as a bounce back loan or recovery loan scheme debt.
What interest rate will I pay?
Each application is judged on its merits and all business loans are individually priced. For this reason, it’s difficult to give an exact interest rate, although we can offer rates from as little as 5.5%.
Some of the very fast loan providers charge much higher interest rates than some of the more traditional business loan lenders.
Understanding the difference in costs, rates and how it could impact your business is key to running your business successfully.
Ultimately, while a lower interest rate is generally better, when making business investments in the future, it can still be profitable to borrow at higher interest rates.
We help you to judge the merits of any business loan offer, explaining the loan amount, rate charged, loan term and monthly payments to make sure that any offer we make is a great fit for the businesses that we work with.
Interest can come in the form of a fixed rate or variable.
How long can I borrow the money for?
With most business loans, you can borrow over a term of 3 months to 6 years.
The maximum loan term will depend on a number of factors including your business details, affordability and your chosen lender.
If you require a longer business loan term, a secured product may make this a possibility.
Am I able to take out this type of loan alongside other borrowing?
Yes, you can still take out this type of loan even if you have other borrowing, such as a business overdraft, credit cards, invoice finance or asset finance. In fact many companies take out business loans alongside other types of debt.
Each application is individually assessed for affordability and to ensure that the business loan product offered is suitable.
If these common sense checks are passed, then there is no reason that you can’t hold multiple products at the same time.
Will applying impact my businesses credit score?
When you apply for a business loan with ABC Finance, there is no impact on your credit score.
Our team of business financing experts first learn about your business and look for the best deal based on your circumstances and needs. At this point in the business loans process, no credit check is required.
If you’re happy with what we offer, we will take your application forward and at this point a credit check will be required. Where the chosen business loan lender undertakes a soft credit search, there will be no impact on your credit file.
When the loan is drawn down, or if a hard search is required, the application will then show on your credit file and could temporarily change your credit score.
Will I qualify if I have bad credit?
Yes, you can still qualify for some business loans if you have a poor credit rating, including low credit score, defaults or CCJs. That said, your choice of lender will be significantly reduced and you may pay slightly higher business loan rates.
We offer a range of bad credit business loans for clients with a poor credit history. In some cases, we may be unable to offer an unsecured business loan for bad credit borrowers, although we may still have secured business loan options available.
What happens if I don’t keep up the repayments on my loan?
If you don’t repay your business loan, as with any loan, the lender will seek to recoup their money through other means.
Whichever type of loan you have taken out, if you have signed a personal guarantee, the lender can take action against you personally to ensure that they are repaid. This is true of business loans, cash advances or even asset based lending.
For unsecured loans, the lender may take legal action to get their money back, enforcing their personal guarantee if necessary. This is because unsecured business loans are not secured against any property.
For secured business loans, the lender may seek to repossess the security property, before selling it to recoup their lost funds. If you face difficulty in meeting your repayments, it’s important that you approach your lender immediately and look to come to an agreement.
Of course, we try to avoid this by taking extra care during the approval process to ensure that any money borrowed can be repaid. This is one of the key advantages of taking out a business loan with ABC Finance.
When should I apply for a business loan?
Judging the perfect time to apply is a key financial decision. If you apply before the funds are needed, you’ll be paying interest that isn’t needed and won’t use the funds efficiently.
Equally, leaving things to the last minute is never a sound financial plan, and can force you to choose a less than ideal product.
Planning ahead and understanding your individual needs and the needs of your SME is key when considering business loans. If you need support in making this decision, get in touch today and our business loan experts will be happy to talk it through with you.
Who are the best lenders?
As the market continues to grow, so do the number of lenders in the loans market. The main ones in the business loan market are:
- High Street Banks
- Highly Specialist Independent Commercial Lenders
- Challenger Banks
There are key differences in the application process when applying for business loans with each of these. The easiest to qualify for are specialist independent business loan lenders.
What documents do I need to apply?
When applying for a commercial loan for your business, there are a few essentials that you must provide:
- Your company name and registration number
- Business bank statements (some lenders can access this directly, with consent using open banking purely for the purposes of arranging the loan)
- Accounts including a profit and loss statement and balance sheet (some lenders can connect directly to your accounting software provider)
For startup businesses, a business plan will be required that breaks down analysis of your current situation, business goals and income projections for the future. This extra step is what puts a lot of start-up businesses off business loans as it can be a little more complex.
Are commercial loans regulated in the UK?
No, business corporate loans are not regulated in the UK.
That said, some companies in the industry are regulated and will usually operate to higher standards as a result.
For example, banks are regulated by the Prudential Regulation Authority. As a business loan broker, we are regulated by the Financial Conduct Authority as we offer regulated as well as unregulated borrowing options.
We treat all of our customers the same whether they're an individual or business, and whether they're taking looking at mortgages or business loans.
Are there specific loans available for startups?
Yes, there are specific business loan finance options available for startup businesses, including the government start-up loans scheme.
These services offer strong value with low APR and are a good option for those who want to avoid approaching investors, preferring traditional loans.
The start-up loans scheme gives you a dedicated loan officer who helps you throughout the process. That said, as an unsecured business loan, the criteria can be strict and the application process is tough to pass.
For those who are happy to offer collateral for their commercial loan, then secured lending is the best option for most borrowers. These are known as secured business loans.
Is a commercial loan right for my business?
Taking out a loan for your business is an individual decision that will depend on the current circumstances of your business, the ways in which you could use the funds raised and any future expected changes to your company or industry.
Whether you’re a small business, medium sized, large or even an entrepreneur with multiple businesses, deep analysis is required before taking out a loan. The key to this research is to guide you on the borrowing options available and the benefits of each one, not looking only at business loans.
Consider your current status and the flexibility that your business operations would have from a cash injection. A business loan can be a key tool for your company when used properly.
To understand the potential costs of borrowing money, use a business loan calculator to calculate your monthly loan repayments. Also consider future events, such as the likelihood of early repayment and how early repayment fees could impact costs.
