Your borrowing need
- How much you want to borrow
- What the funds are for (working capital, equipment, growth, refinance, acquisition)
- Preferred loan term
- Whether you have assets to offer as security
Business loans
Find the right business loan for your next move. Compare secured, unsecured and alternative funding from a panel of UK lenders. Free, no obligation.
- Secured and unsecured loans from £1,000 to £50,000,000
- Merchant cash advance and revolving credit also covered
- Independent commercial finance broker
- Single application, multiple lender decisions
Last updated: July 2026
What is a business loan?
Secured
Backed by a business or personal asset such as property, equipment or debtors. Lower rates and larger amounts, but the asset is at risk if you default.
Unsecured
No asset pledged, this may be backed by a director’s personal guarantee. Faster to arrange but rates are higher and limits are lower.
A business loan is a lump sum advanced to your business by a commercial lender, repaid over an agreed term with interest. It can be secured against an asset, or unsecured and backed by a director personal guarantee.
Businesses use loans for working capital, hiring, equipment and stock purchase, refurbishment, expansion, acquisitions or refinancing existing debt. Where the need is short-term and tied to unpaid invoices, invoice finance can sit alongside, or instead of, a term loan.
For example, a £100,000 unsecured loan over 3 years releases the full amount upfront and is repaid in equal monthly instalments. A secured loan against business property could fund a larger amount at a lower rate, over a longer term.
How the process works
Five steps from enquiry to drawdown.
- 01
Tell us what you need
Share your loan size, purpose and turnover band in a 60-second enquiry.
- 02
We match you to lenders
We shortlist lenders from the panel whose criteria fit your business profile and funding requirement.
- 03
You complete one application
We package your information once and present it to the shortlisted lenders, rather than you applying to each in turn.
- 04
Receive lender decisions
Indicative decisions usually arrive within a few working days, depending on loan size, security and lender appetite.
- 05
Drawdown the funds
You accept the offer that suits you best, sign the paperwork, and the lender releases funds to your business account.
What you'll need
A few details up front let us match you to lenders faster and get a more accurate decision.
Your business
- Companies House number and trading name
- Annual turnover
- Last 6 months of business bank statements
- Most recent year-end accounts, or management accounts if accounts are older than 15 months
Director information
- Director names and home addresses
- Date of birth
- Any specific assets available as security (property, equipment, debtors)
We do not run a credit search at the enquiry stage. A formal search may happen when you progress to underwriting with a lender.
Types of business loan
Different products suit different balance sheets, funding purposes and timing needs.
- Term loan
- A fixed lump sum advanced upfront and repaid in agreed instalments over a set term, typically 1 to 7 years. The standard business loan product. Suits one-off needs like working capital, equipment, refurbishment, expansion or refinancing existing debt.
- Merchant cash advance
- A lump sum funded against your future card sales. The lender collects a fixed percentage of your daily or weekly card takings until the agreed total is repaid. Suits ecommerce, retail, hospitality and other businesses with steady card revenue. Learn more about merchant cash advance
- Revolving credit facility
- A pre-agreed credit limit you can draw down, repay and re-draw as needed. Interest is only charged on funds in use. Suits businesses with variable working capital needs rather than a one-off funding requirement. Learn more about revolving credit facility
- Asset finance
- Funding to purchase or refinance specific equipment, vehicles or machinery. The asset itself usually serves as security, so rates can be lower than unsecured options. Suits significant kit purchases without using cash reserves. Learn more about asset finance
Secured vs unsecured at a glance
The main difference is whether the loan is backed by an asset, and how that changes rate, size and decision speed.
| Feature | Secured | Unsecured |
|---|---|---|
| Collateral required | Yes (property, equipment, inventory) | No, personal guarantee usually required |
| Typical loan size | £10,000 to £50,000,000 | £1,000 to £2,000,000 |
| Typical rate band | 5% to 12% p.a. | 8% to 36% p.a. |
| Typical decision speed | 1 to 4 weeks | Same day to a few working days |
| Application depth | Heavier, full financials, independent legal advice and asset valuation | Lighter, focused on credit and trading data |
| Default consequence | Loss of the pledged asset | Personal guarantee called on the director |
| Best suited to | Established businesses with assets, larger funding needs | Businesses without significant assets or needing speed |
Indicative ranges. Actual terms depend on your business profile, security available and lender.
Is a business loan right for your business?
Most UK SMEs with a trading history and a clear funding purpose can access some form of business loan.
-
Your business is UK-registered
FundingLinks arranges funding for UK-registered limited companies, LLPs and PLCs. We do not broker finance for sole traders.
-
You have a trading history
Most lenders want to see at least 6 to 12 months of trading. Some products are available to newer businesses backed by a strong director profile.
-
Your annual turnover supports the loan size
Lenders generally cap loan size to a multiple of monthly turnover. Higher turnover unlocks larger facilities and better rates.
-
A director can provide a personal guarantee
Most unsecured loans require a director personal guarantee. Secured loans may use a guarantee alongside the asset charge.
-
No recent unresolved CCJs or insolvency
Recent county court judgments, missed payments or insolvency events make most lending difficult. Specialist lenders may still consider, case by case.
Pros and cons of business loans
A loan is the right tool for many funding needs, but not all. Weigh the trade-offs before committing.
Pros
- Predictable repayment schedule on most term loans
- Funds available for a wide range of business purposes
- Secured options unlock larger amounts at lower rates
- Faster decisions than typical high-street bank lending
- Builds a credit track record with commercial lenders
Cons
- Personal guarantee usually required for unsecured loans
- Secured loans put a pledged asset at risk on default
- Repayments are due whether or not sales come in (unlike invoice finance)
- Rates can be higher than secured asset finance for newer businesses
- Merchant cash advance total cost can exceed a traditional term loan
How much does a business loan cost?
Two charges typically apply, plus any specific fees set by the lender.
Interest rate
Rates depend on whether the loan is secured or unsecured, the loan size, the term, and your trading and credit profile. Secured loans typically sit at the lower end of the band, unsecured loans for newer businesses at the higher end.
Arrangement fee
Most lenders charge a one-off arrangement fee at drawdown, typically a percentage of the loan amount. Some products waive the fee on smaller facilities. We confirm the all-in cost before you commit.
Exact pricing depends on the loan type, security available, trading history, credit profile and lender appetite at the time of enquiry. We surface the full cost alongside the rate so you can compare like-for-like.
How FundingLinks finds your business loan
We help you compare the market without sending your details to unsuitable lenders.
- 01
Tell us what you need
Share your business details, loan profile and funding requirement.
- 02
We compare lenders
We compare offers from 100+ UK lenders, including high-street banks, challenger banks and specialist lenders.
- 03
Choose the right offer
Review the options and choose the loan that fits your business.
- 04
Draw funds
Once approved, funds can be in your account, often within 24 to 48 hours.
Why businesses choose FundingLinks
Specialist support for UK SMEs looking to compare business loans and alternative funding.
- 100+
- UK lenders compared
- 500+
- SMEs funded
- 35+ years
- Combined commercial finance experience
Whole-of-market panel
100+ UK lenders, including high-street banks, challenger banks, specialist lenders and alternative finance providers. We are an independent broker, not tied to any single lender.
Specialist, founder-led support
Founded by Sam Wells and Chris Findlow, with 35+ years' combined experience in commercial finance. You speak to specialists, not a call centre.
Clear process, secure portal
Track your enquiry, review lender offers and exchange documents in one secure portal. No email chains, no spreadsheets, full visibility from enquiry to drawdown.
Free to compare, success-based fees
No upfront charge to use FundingLinks. Fees apply only if you proceed with a facility, and they are agreed in writing before you commit.
Business loan FAQs
Direct answers to the questions business owners usually ask before comparing loans.
How quickly can I get a decision on a business loan?
Decision times vary by lender and loan size. Unsecured loans often have a same-day or next-day decision, while secured loans involve more due diligence and typically take longer. We surface decision speed alongside rate and term so you can weigh the trade-off.
Will I need to provide a personal guarantee?
Most unsecured business loans in the UK require a personal guarantee from a director. Secured loans usually have collateral instead, although a personal guarantee may also be requested. We flag the requirement on each lender shortlisted.
Do you charge fees to the borrower?
We are paid by the lender on completion. We will set out how any facility and our role are costed before you proceed.
What information do I need to apply?
For most enquiries we ask for the basics: business name, director name, contact details, turnover band, funding requirement and reason for funding. We will request more detailed financials only when we have shortlisted lenders that need them.
What is the difference between a secured and unsecured business loan?
A secured loan is backed by a business or personal asset such as property or equipment, which the lender can take if the loan is not repaid. An unsecured loan has no asset pledged, so lenders rely on creditworthiness and a director personal guarantee. Secured loans typically offer larger amounts at lower rates; unsecured loans are quicker to arrange.
Can a startup or new business get a loan?
Some lenders fund businesses with as little as 6 months trading, particularly on unsecured term loans and merchant cash advances. Government-backed schemes can also be relevant for newer businesses. Eligibility usually depends on the director profile and the funding purpose.
How is a merchant cash advance different from a term loan?
A term loan has fixed repayments over a set period. A merchant cash advance is repaid as a percentage of your daily card sales, so repayments move with takings. Total cost on a merchant cash advance can be higher, but it suits businesses with strong card volumes and uneven cash flow.
What can I use a business loan for?
Common uses include working capital, hiring, stock and equipment purchase, refurbishment, marketing, expansion, acquisitions and refinancing existing debt. Some lenders restrict use of funds, others are open. We confirm the lender appetite on each enquiry.
Will applying impact my credit score?
A FundingLinks enquiry does not run a credit search. Lenders we shortlist may run a soft search to indicate eligibility, with a hard search possibly at full application stage. We make the search type clear at each step.
How long are typical loan terms?
Unsecured term loans typically run from 1 to 5 years. Secured loans can extend to 10 years or longer where backed by property. Merchant cash advances are usually repaid within 6 to 12 months. Revolving credit facilities are typically renewed annually.
Can I repay early without penalty?
Early repayment terms vary by lender. Some allow penalty-free early repayment, others charge a percentage of the remaining balance or recover unearned interest. We highlight the early repayment terms before you sign.
Are business loans regulated?
Most commercial business loans to limited companies are unregulated, which gives flexibility on structure but means borrowers should still expect transparent terms. Lending to sole traders and ordinary partnerships can fall under FCA consumer credit regulation, so FundingLinks works only with UK limited companies, LLPs and PLCs.
Related products
Other funding options that can work alongside, or instead of, a business loan.
Ready to find the right loan?
Get an indicative quote in 60 seconds. No obligation, no impact on credit score.
Written by
Sam Wells
Director, FundingLinks
Sam Wells co-founded FundingLinks alongside Chris Findlow, after more than 10 years in invoice finance and alternative lending, including senior broker and partnership roles at Kriya. He helps SMEs access competitive funding by matching them with the right lender, product and structure for their stage of growth.
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