Business Loans

Fundably provides access to bespoke business loans for a variety of business needs. Whether you're looking to expand your operations, invest in new technology, manage cash flow, consolidate debt, complete a management buyout (MBO), a management buy-in (MBI), to refinance or to seize a growth opportunity, we have a solution for you.

Fundably offers personalised support and a straightforward process that lets you focus on what you do best – growing your business. Apply today to get a financing solution that aligns with your business objectives, with competitive rates and flexible terms.

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Check your eligibility for business finance with our online application, without affecting your credit score and with no obligations.

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What are Business Loans?

A business loan is a designated amount of money lent to a company for specific business purposes. The borrower repays the principal sum along with interest over a predefined period. Business loans can support various aspects, from purchasing inventory before a busy season to acquiring new equipment or machinery for growth and operational needs.

Similar to personal loans, to acquire a business loan, an application must be submitted to a lender who evaluates your business's eligibility and determines the interest rate. Upon accepting the offer, your business receives the funds and begins repaying them monthly, along with interest, over the agreed period.

Eligibility hinges on several factors, including your business's trading history, assets, cash flow, and credit history.

Common types of Business Loans

  • Revolving Credit Facilities: A flexible financing option where a business can withdraw, repay, and redraw funds within an agreed limit, much like a credit card. Ideal for managing cash flow and unexpected expenses.
  • Overdrafts: A facility allowing businesses to draw more money than they have in their account up to an agreed limit, providing a safety net for short-term financial needs or unexpected costs.
  • Merchant Cash Advances: Provides immediate funds based on future credit card sales. Suitable for businesses with a high volume of card transactions, offering repayment through a percentage of daily card sales.
  • Asset Refinancing: Involves using the equity in a company's assets (like machinery or vehicles) as security for a loan. It's a way to unlock cash tied up in assets, often used for expansion or improving cash flow.

Apply for a Business Loan in 5 minutes with Fundably - and get instant tailored feedback

Applying for a bespoke business loan via Fundably takes around 5 minutes. Simply complete the application form and connect your data and our platform will instantly match you with the most relevant credit products - and we'll send you tailored feedback via email. Fundably matches businesses with appropriate lenders and products from a wide pool of lenders, offering a range of financial solutions, including unsecured loans, secured loans and short-term and long-term facilities.

Borrowing limits

Businesses can potentially borrow between £50,000 and £10 million, with repayment terms stretching from one month to 15 years. A business loan calculator can help estimate the cost of the loan based on the amount, interest rate, and term length.

Is a Business Loan suitable for you?

Consider a business loan if your business needs a cash boost for equipment purchase, expansion, or managing cash flow dips. Loans can strengthen your business position and help achieve goals.

Timeframe for obtaining a Business Loan

The process to secure a business loan can range from a few hours to several weeks, depending on the loan type and lender. Secured loans generally require more time to process than unsecured loans.

Secured Small Business Loans

These loans necessitate collateral, such as property or equipment. The collateral reduces the lender's risk, often resulting in lower interest rates and favourable terms. Benefits include less emphasis on credit scores, fixed interest rates, potential for early repayment, and generally lower costs compared to unsecured loans.

Unsecured Small Business Loans

These loans do not require collateral and are suitable for rapidly growing or asset-light businesses. Benefits include quicker processing, access to capital for growth, and coverage for unforeseen expenses, though they typically require a personal guarantee.

Advantages and Disadvantages of Business Loans

Pros include access to capital for growth, retaining full control over your business, flexibility in fund usage, and fixed repayment rates. Cons comprise strict eligibility criteria, potentially higher interest rates for newer businesses, partial loan approvals, and negative credit impacts for defaults.

Alternatives to Business Loans

Alternatives include merchant cash advances, asset finance, invoice financing, and revolving credit facilities. Each option caters to different business needs and circumstances.

Obtaining a Business Loan with Poor Credit

While a bad credit rating might lead to higher interest rates or rejection, it doesn't entirely preclude you from obtaining a loan. Certain products cater to businesses with less-than-ideal credit histories.

Enhancing Loan Approval Chances

Improving your chances involves checking your credit report, organising finances, ensuring up-to-date business accounts, and creating a detailed plan for the loan's use.