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How to get a business loan

PUBLISHED ON: 27/01/2024

The right type of loan can kick-start your business or provide the financial support that enables growth. Not all business loans are made equal, however, and it’s important to know your options and how to source the best deals.

You can find a business loan yourself online or with your bank but it won’t necessarily meet your business’s specific needs. It’s advisable, therefore, to seek support from independent experts with access to the entire commercial loans market.

This type of borrowing is typically available from around £5,000 up to £500,000 and can be either a secured or an unsecured business loan. A secured loan means that you have to provide an asset that the lender can use as collateral.

Secured business loans typically have lower interest rates than unsecured loans, but you do risk losing the asset if your business cannot repay. So how do you get the right business loan for your business?

Use an independent business finance brokerage

Independent business loan brokers have no affiliation with a particular lender and can conduct a whole-of-market search to find the most competitive quotes. This won’t damage your credit score as only ‘soft’ searches are made on your business at this stage.

UK Business Finance offers a free brokerage service that will lead you to the most appropriate commercial loan for your business. We’ll ensure you meet all eligibility requirements before applying, and can also make the application on your behalf.

How to obtain a business loan

Consider your business’s funding needs

Think about why you’re applying for funding and how much money you’ll need. If you don’t apply for sufficient borrowing it could compromise your growth plans, but applying for too much will incur higher fees and interest rates.

Support your application with a business plan

A business plan that demonstrates how you’ll repay your loan helps to reassure lenders that your company can afford the borrowing and won’t renege on payments. This can lead to lower interest rate loans being offered and generally more favourable terms.

Gather together all relevant documents

In addition to your business plan, which should include financial forecasts, you may also need to show the lender your business bank statements and accounts, business and personal tax returns, and proof of your identification. You may be required to provide a personal guarantee in order to underpin any business loan you may take out.

Approach a business loan broker

We’ll ask you why you want the funding and approximately how much you need, and then scour the market for the most suitable business loans, checking your eligibility. Once we’ve arrived at a shortlist of possible business loan options we can guide you towards the one that best matches your needs, and that’s affordable for your business. We’ll then make the application on your behalf, sending any required supporting documents that have been requested by the lender.

For more information on how to get a business loan, please get in touch with UK Business Finance. We offer a free, no-obligation service and operate a nationwide network of offices so you’re never far away from professional funding support.

Contact us for more information

  • Fully Independent
  • Whole Market Access
  • Matchmaking Process