Costs and fees
What interest rate will I pay on a business loan?
By Sam Wells · 21 July 2026
There is no single rate. It depends on whether the loan is secured, your trading history and profitability, the term, and the lender's view of risk. Stronger, established businesses with security get the keenest pricing, while newer or unsecured borrowing costs more. Comparing lenders is the only reliable way to know what you actually qualify for.
Anyone who quotes you a headline rate before understanding your business is guessing. Pricing is set case by case, and the main levers are:
- Secured or unsecured. Secured lending, backed by an asset, almost always prices lower than unsecured, because the lender carries less risk.
- Trading strength. Established, profitable businesses with a clean history get better rates than newer or loss-making ones.
- Term and amount. How long you borrow for and how much both feed into the price.
- The lender. Banks, challenger banks and specialist lenders all price the same deal differently, and their appetites move over time.
That last point is the reason to compare rather than accept the first offer. The same business can be quoted noticeably different terms by different lenders, and the cheapest advertised rate is often not the one you would actually be offered.
Rather than chase a number, the useful step is to let us put your profile in front of the lenders most likely to suit it, then compare the real offers, including any fees, side by side. That shows you the genuine cost of borrowing for your situation, not a marketing rate.
Written by
Sam Wells
Director, FundingLinks
Co-founder and Director at FundingLinks with over 15 years of leadership experience in commercial finance. He works directly with SMEs across the UK to structure funding across the whole lender market.
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