A business loan provides a lump sum that you can invest in your business, which is then repaid over an agreed term with interest. It’s one of the most flexible forms of commercial finance and can be used for a wide range of purposes, from covering short-term cash flow gaps to funding major expansion projects. Business loans are available on both a secured and unsecured basis, depending on how much you need to borrow and what security you can offer.
We’ll help you understand what different lenders are actually looking for, rather than sending you off to complete application after application and hoping one is successful. By matching you with the right lenders from the outset, we aim to improve your chances of securing the finance your business needs.
| Feature | Unsecured Business Loan | Secured Business Loan |
|---|---|---|
| Security required | None, based on business performance | Secured against property or other assets |
| Typical amounts | Smaller to mid sized amounts | Larger amounts, reflecting the security offered |
| Speed to fund | Often faster, sometimes within days | Usually slower, given valuation and legal work |
| Typical cost | Generally higher rates reflecting the risk | Generally lower rates given the added security |
Gross bank lending to UK SMEs runs to around £68 billion a year, according to the British Business Bank, yet a significant number of smaller businesses never apply for finance at all, often assuming they won’t be approved. It’s worth having a proper conversation before ruling it out.
Depending on your business and what you need, we can look across a wide range of providers, including:
The most common reason for a claim in 2024 was musculoskeletal conditions, such as back and joint problems, which made up 34% of all income protection claims. Mental health conditions were also among the leading causes, which is worth knowing if you’re weighing up whether this type of cover is relevant to you.
A homeware retailer needed to buy stock ahead of their busiest quarter but didn’t want to wait for sales to fund it. We arranged an unsecured business loan sized to the stock order, with repayments structured to ease slightly during quieter trading months, ensuring the finance matched the way the business actually generated its income.
A logistics company wanted to open a second depot and needed a larger loan than an unsecured facility could provide. We arranged a secured business loan against existing company assets, enabling the business to borrow the required amount at a lower interest rate than an equivalent unsecured loan. This resulted in significant savings over the life of the loan.
It depends heavily on your turnover, trading history, and whether the loan is secured or unsecured. Unsecured business loans are typically available for smaller borrowing amounts, while secured loans can provide significantly higher funding when backed by suitable business or property assets. We’ll give you a realistic borrowing range once we’ve assessed your business and its financial position.
In almost all cases, yes. Mortgage lenders will usually accept a buildings insurance policy from any reputable insurer, provided it meets their minimum cover requirements. It’s worth comparing policies rather than automatically accepting the one recommended by your lender.
A business loan provides a fixed lump sum that is repaid over an agreed term, while invoice finance releases cash tied up in unpaid customer invoices as they are raised. Depending on their funding needs, many businesses choose to use both products together.
For limited companies, borrowing is usually assessed and recorded in the company’s name. However, many lenders require directors to provide a personal guarantee, which means they may become personally liable if the business is unable to repay the loan. We’ll always explain exactly what any guarantee means before you commit to borrowing.
