Compare business loans

Compare Business Loans

Taking out a business loan is important for future business owners to be able to cover setup costs, along with current business owners who would like to make improvements to their existing business.

These costs are dependent on what kind of industry you operate in, but usually include commercial unit or office rental, specialist equipment, advertising, digital infrastructure, staff training & wages, insurance and stock.

Borrowing money as a small business owner, start up, sole trader or partner is a good way to make your business grow, while thinking about the continued success of a company you’ve helped to build from the ground up. With careful planning and the right offers, you can borrow money and use it to add value to your business, while paying it back at your own pace.

What types of business loan are available?

• Small Business Loan
• Unsecured Business Loan
• Business Credit Line
• Merchant Cash Advance
• Secured Business Loan
• Working Capital Loan
• Business Bridging Loan

These different types of business loan will appeal to varying business owners, depending on how much you need to borrow and what your current financial situation is. It’s worth understanding what each type of loan is before you make a firm decision, giving you an overview of different borrowing options and helping you decide which one is right for your business.

Secured vs Unsecured Business Loans

The biggest difference you may have encountered is between a Secured and an Unsecured Business Loan. The distinction is important for choosing a loan that fits your business and also indicates the level of risk that comes attached to borrowing money for your business.

A Secured Business Loan refers to the loan being ‘secured’ against a high-value asset such as property or equipment, which means that in the event of you not being able to repay the lender will simply take ownership of the secured asset by way of repayment. This makes this type of loan much riskier, as it can put your assets in danger of repossession.

An Unsecured Loan refers to a loan that is not secured against an asset, and is instead based on your ability to make repayments as a business or individual (if you’re a sole trader). This is a much more favoured way of borrowing as it means you aren’t putting business or personal assets at risk.

Applying for a business loan

The process in applying for a business loan will differ depending on whether you’re a new business such as a start up looking for funding, or an established business who would like to cover costs or make improvements.

New business application

As a brand-new business, you will have to do a little bit more work to get a business loan, as you will usually have to create a business plan to show a lender how you plan to grow and what your cash flow forecast might look like. Your application will also take into account your personal credit history and whether you have had trouble with borrowing in the past.

Existing business application

Your application as an existing business will usually involve your current turnover and previous financial records to indicate how much you will be able to pay back.

In addition, you might have further financial projections that will also indicate what sort of growth you will be looking to make in the near future. This will inform the lender how much you can afford to repay as a business so you aren’t borrowing too much, or too little.

Am I eligible for a business loan?

When applying for any sort of business loan you always need to check your eligibility first. This will allow you to have visibility over your credit history and whether you are viewed by providers as creditworthy or not.

Finding out your credit score should give you an indication over how likely you are to be accepted for a business loan. If you are a new business it will sometimes be your personal credit score you need to check, whilst established businesses can view a business credit score instead.

Remember that there are various credit report providers who will give you a score, each employing different grading systems to tell you if you have a good credit rating. Try to find one that will give you a detailed picture of your credit file and give you enough information for you to proceed with an application.

How to find the best loan for my business?

Take a look at our different business loan comparison tables to see what is available, alongside reading up on types of business loan to ensure you’re getting the right one.

Scroll to the tabs at the bottom of each table page to find relevant information, FAQs, product guides and a list of our current lenders or providers. This will help inform your decision and give you the relevant knowledge to continue with making an application for a business loan.