A business loan is a way of borrowing money from a lender to fund your business. They’re available for a variety of business needs, whether you want to take advantage of opportunities to grow or boost your cash flow.
The term business loan is a broad one and they can work in a few different ways in terms of eligibility, application and repayment. Generally, you’ll apply to borrow an amount of money upfront, then pay it back in instalments over an agreed period with interest on top.
A loan like this can come in handy for a range of business types, ages and sizes. Lenders range from high-street banks to alternative business funding providers like Nucleus. We’re making it quicker and easier to get the finance you need.
Types of small business loans
Business loans in the UK are either unsecured or secured.
Unsecured loans are loans that businesses can apply for without using company or personal assets to back them up. They’re a quick and easy option if you lack assets or prefer not to offer them. Lenders will focus more on your credit history and financial performance instead.
Getting a secured business loan involves offering an asset such as property, stock or equipment as ‘security’ for the lender. This means that if your business can’t make the repayments, the lender can use your asset to recoup their money. You can usually borrow more money at better business loan rates with security because the risk is lower for the lender this way. We offer a range of options within these two categories to help you find business finance that suits you.
Business Growth Loans: Unsecured short-term business loans up to £25K Cash Flow Finance: Unsecured loans of up to £250K with repayment terms of up to five years Property Finance: Loans of up to £20m secured by property, repaid over up to seven years