Recommended by the government’s development bank, which helps SMEs get finance
Best Business Loans UK
Discover some of the best business loans in the UK from banks and trusted lenders. Explore funding options tailored to startups, sole traders, and SMEs — all in one place.
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Compare some of the UK's best business loans from the Funding Options lending panel
What is a Business Loan?
A business loan is a type of finance designed to help companies access the funds they need for growth, operations, or stability. In simple terms, it’s when a bank, lender, or alternative finance provider lends money to a business, which is then repaid over an agreed period with interest.
Business loans come in many forms — including unsecured loans, secured loans, startup loans, and revolving credit facilities. The right option will depend on factors such as your trading history, financial profile, and whether you can provide security. By exploring some of the best business loans available in the UK, startups and SMEs can find solutions tailored to working capital, expansion projects, refinancing, or cash flow support.
Benefits of Taking Out a Business Loan
Business loans can give startups and SMEs the financial support they need to manage cash flow, invest in growth, or stabilise operations. Here are some of the key advantages when exploring business loan options in the UK:
Access to Working Capital
Cover day-to-day expenses, payroll, or stock purchases during quieter trading periods.
Support for Growth
Use loan funding to expand premises, hire staff, or launch marketing campaigns to scale your business.
Flexible Use of Funds
Apply loan capital to equipment, vehicles, marketing, or refinancing, depending on your needs.
Build Business Credit
Repayments made on time can help improve your business credit profile and future borrowing potential.
Variety of Options
From secured and unsecured loans to startup and revolving credit facilities, options can be tailored to fit.
Quick Access to Funds
Many business loans can be approved quickly, giving you access to capital when you need it most.
About Funding Options
Funding Options is our UK partner that helps businesses explore some of the best business loan options in the UK. With a single application, their Funding Cloud technology matches your business profile to over 120+ lenders, returning tailored results in minutes — without affecting your credit score.
Whether you’re looking at loans to support growth, manage cash flow, or launch your startup, Funding Options gives you access to a wide range and some of the best business loans and finance products on the market. These include unsecured and secured lending, revolving credit, asset and invoice finance, merchant cash advances, bridging loans, and commercial property finance.
How to Compare the Best Business Loans in Minutes
StartupDeals.co.uk has partnered with Funding Options to help you quickly explore some of the best business loans in the UK. With one simple application, their Funding Cloud technology reviews your business profile and matches you with more than 120 UK lenders, returning tailored finance options for startups, growth, and cash flow. The process is free, takes only minutes, and initial checks will not affect your credit score.
Tell us about your business
Share how much you need, what it’s for, and key details so we can compare business loans matched to your profile.
Compare quotes instantly
Funding Options compare your details against 120+ lenders so you can see tailored finance quotes in seconds.
Apply and get your funding
Apply for finance and initial checks won’t affect your credit score. Receive funds into your account.
Choosing the Best Business Loan Type
When exploring some of the best business loans in the UK, it’s important to consider your goals, cash flow, and the security you can provide. These factors will determine which loan type may be the most suitable for your business. Use the options below to compare different loan types and discover a wider range of business finance solutions.
Unsecured Business Loans
Borrow without collateral. Quick decisions; may require a personal guarantee.
Secured Business Loans
Backed by assets for lower rates and larger amounts.
Working Capital / Short-Term Finance
Cover day-to-day costs and short cash-flow gaps.
Revolving Credit Facility
Flexible line of credit — pay interest only on what you use.
Asset Finance
Hire purchase or leasing for vehicles, machinery and equipment.
Invoice Finance
Release cash tied up in invoices (factoring & discounting).
Merchant Cash Advance
Repay via a % of future card sales — flexible with turnover.
Commercial Property Finance
Commercial mortgages & development finance.
Bridging Loans
Short-term funding to bridge a purchase, sale or refinance.
Growth Guarantee Scheme
Government-backed lending via accredited providers.
Bad-Credit Business Loans
Options for thinner files or weaker credit profiles.
Startup Business Loans
Funding to launch or grow a new business—often unsecured, with flexible criteria for early-stage companies.
Who Can Apply for a Business Loan in the UK?
Exploring some of the best business loan options in the UK depends on your business type, stage, and financial circumstances. While every lender has different criteria, here are the common factors they consider:
- Business types
- Sole traders, partnerships/LLPs, limited companies, and in some cases nonprofits or social enterprises may be eligible.
- Stage of business
- Trading 6–24+ months: Wider choice of lenders and often sharper pricing.
- New/pre-revenue: Fewer options, usually smaller amounts, but some startup-focused loans are available.
- Financial profile
- Lenders look at cash flow, debt levels, and bank history. A weaker credit profile isn’t always a rejection, but it may affect available options or pricing.
- Directors & owners
- Most lenders require UK residency checks, ID verification, and credit checks on directors or major shareholders. Personal guarantees are common, particularly for unsecured loans.
- Security & guarantees
- Unsecured: Quicker, simpler, and often require a personal guarantee.
- Secured: Backed by assets (property, vehicles, receivables, equipment), allowing larger amounts and lower rates, but assets may be at risk if repayments aren’t met.
- Use of funds
- Loans can support working capital, hiring, equipment/vehicles, marketing, refinancing, or consolidation. Some restricted uses may apply depending on the lender.
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FAQs: Business Loans (UK)
What are business loans and how do the best business loans in the UK work?
Business loans are financing products designed to help UK businesses access capital for growth, equipment, cash flow or expansion. The best business loans in the UK typically offer competitive interest rates, flexible repayment terms, and fast approval times. Depending on the lender, funds can be unsecured or secured against business assets. High street banks, challenger banks, and online lenders all offer top business loans, each with varying eligibility criteria and features.
Why should a small business or startup consider applying for a business loan?
Small businesses and startups often need funding to invest in stock, staff, or marketing. Applying for the best business loans can provide the working capital required to fuel growth without diluting ownership. Whether you choose high street lenders or online platforms, the top business loans give you structured repayments, sometimes with repayment holidays or flexible terms tailored to your revenue.
Who can take out a business loan?
Eligibility for top business loans in the UK depends on the lender. Most providers require your business to be registered as a sole trader, partnership, or limited company. Some of the best lenders for business loans also cater to startups with less than 12 months of trading, while traditional banks offering the best business loans often require strong credit history and financial records.
What is meant by the “best business loans” in the UK?
When people ask “what is the best business loan in the UK?”, they’re usually referring to loans that combine low interest rates, quick approval, and flexible repayment. The best business loans balance affordability with accessibility—meaning even smaller businesses or those with lighter trading history can apply. The “best” loan will vary depending on whether you prioritise speed, price, or long-term support.
Which banks are considered the best banks for business loans in the UK?
Some of the best banks for business loans in the UK include Lloyds, NatWest, Barclays, HSBC and Santander, all of which offer traditional business finance products with fixed or variable rates. However, many businesses are now turning to digital-first providers like Starling Bank or Tide, which offer fast-access business loans for SMEs with minimal paperwork.
Who are some of the lenders for the best business loans outside the high street banks?
Outside of high street banks, there are several best lenders for business loans such as Funding Circle, iwoca, Capify, Fleximize, and YouLend. These providers specialise in top business loans with streamlined applications, making them popular choices for businesses needing quick approvals or alternative financing options.
How can I compare the top business loans and find the best business loan for my company?
To compare top business loans, look at the interest rate, repayment term, fees, approval time, and whether the lender offers unsecured or secured funding. Online comparison platforms and brokers can help you line up the best business loans in the UK based on your turnover and credit score. Always choose a lender that aligns with your cash flow needs and growth plans.
Can sole traders be eligible for the best business loans in the UK?
Yes — sole traders can apply for the best business loans, but decisions will be based on the individual lender eligibility criteria. Some banks may require a minimum monthly income or proof of trading history. Fortunately, many alternative lenders offer top business loans for sole traders, even if you don’t have high turnover or a perfect credit score. Funding options like unsecured loans and merchant cash advances are popular with sole traders.
Do I need good credit to access the best business loans?
While excellent credit increases your chances of being approved for the best business loans, there are also top business loan options for bad credit. Some best lenders for business loans assess your affordability using cash flow or card sales rather than credit scores alone. However, if your credit is weaker, expect higher interest rates or shorter repayment terms.
What documents are usually required to apply for the best business loans?
Most lenders ask for proof of identity, recent bank statements, business accounts or forecasts, and details of directors. The exact paperwork depends on whether you are applying for a secured or unsecured loan.
How quickly can I access funds after approval?
Some lenders release funds within 24–48 hours once an application is approved, particularly for unsecured loans. Secured loans may take longer due to valuations and legal checks.
What interest rates should I expect on business loans in the UK?
Rates vary depending on the lender, loan type, and your business profile. Generally, unsecured loans carry higher rates than secured loans, but shopping around or comparing lenders can help you access more competitive options.
Are government-backed loan schemes still available for UK SMEs?
Yes — there are government-backed schemes, such as the Recovery Loan Scheme, designed to support small businesses. These can sometimes make borrowing more accessible by reducing risk for lenders.
FAQs: About Funding Options
Is Funding Options a lender or a broker?
Funding Options is not a direct lender. It acts as a broker, matching businesses with more than 120 UK lenders through its Funding Cloud platform. This means you can compare multiple finance providers in one application.
Does using Funding Options affect my credit score?
No — when you first check your eligibility with Funding Options, only a soft search is carried out. This allows you to view potential loan offers without leaving a mark on your credit file. A full credit check may only occur if you decide to proceed with a lender.
How does Funding Options match my business to lenders?
Funding Options uses technology called Funding Cloud, which reviews your business profile and requirements. It then connects you with lenders most likely to approve your application, helping you save time while exploring some of the best business loan options in the UK.
Are there any fees for using Funding Options?
There are no upfront fees for using Funding Options. In most cases, the service is free for businesses, as the platform earns a commission from lenders when funding is successfully arranged.
Can startups use Funding Options?
Yes — startups can apply through Funding Options, although the loan types and amounts available may depend on your stage of business. Some lenders specialise in early-stage or pre-revenue businesses, offering products tailored to new ventures.
How fast can Funding Options help me secure funding?
Depending on the loan type and lender, funding can be arranged quickly. In some cases, unsecured loans are approved and paid out within a few days, while secured finance may take longer due to additional checks.
What loan types can I compare through Funding Options?
Funding Options covers a wide range of finance products, including unsecured and secured loans, startup loans, asset and invoice finance, revolving credit, merchant cash advances, and commercial property finance. This makes it easier to compare options side by side.
Is Funding Options safe to use?
Yes — Funding Options is an FCA-regulated credit broker in the UK. It works with authorised lenders and uses secure technology to handle your application, ensuring your data is protected throughout the process.
FAQs: About Startup Deals
Do StartupDeals provide business loans directly?
No — StartupDeals does not lend money directly. We work as an introducer partner with Funding Options, who connect UK businesses to more than 120 lenders through their regulated platform.
Is StartupDeals paid by Funding Options?
Yes — if you are successfully matched with a lender and take out finance, StartupDeals may receive a commission from Funding Options. This comes at no extra cost to you as the customer.
Can I trust StartupDeals when applying for a business loan?
Yes — StartupDeals is a trusted affiliate partner of Funding Options. Funding Options is FCA-regulated, and all loan applications are handled securely by them, ensuring compliance and transparency.
Why does StartupDeals recommend Funding Options?
At StartupDeals, our goal is to help startups, sole traders, and SMEs access the tools and services they need to grow. We recommend Funding Options because they provide access to a wide network of over 120 UK lenders — from high street banks to specialist and alternative finance providers. This means that instead of applying to lenders one by one, businesses can complete a single application and quickly see tailored funding options side by side.
Funding Options also uses secure technology to match businesses with lenders most suited to their profile, making the process faster and more efficient. For startups, this can be particularly valuable, as many lenders on the platform specialise in supporting early-stage businesses.
By partnering with Funding Options, we can introduce our audience to a trusted, FCA-regulated broker where they can explore some of the best business loan options in the UK, compare rates and terms, and find funding that may fit their circumstances — all in one place.
Does StartupDeals decide if my business loan is approved?
No — StartupDeals does not make lending decisions. All applications are assessed by Funding Options and their panel of lenders. Approval depends entirely on the lender’s criteria.
Is StartupDeals regulated to provide credit?
StartupDeals does not provide credit directly and is not a lender. We act as an introducer to Funding Options, who are FCA-regulated and work only with authorised UK lenders.
Will it cost me extra to use StartupDeals?
No — you won’t pay any additional fees by applying through StartupDeals. If you proceed with a loan, StartupDeals may receive a commission from Funding Options, but this does not affect the cost of your finance.
Who handles my data if I apply for a loan?
Your loan application and personal data are handled securely by Funding Options, not StartupDeals. They use regulated systems and strict data protection measures to keep your information safe.
Does StartupDeals provide financial advice?
No — StartupDeals does not provide personalised financial or lending advice. We introduce businesses to Funding Options so they can compare loan options. All content on StartupDeals.co.uk is created to be impartial and informative. It is designed to help startups and SMEs explore tools, services, and funding options available in the UK. The information is not intended as financial advice. For tailored guidance, you should seek advice from a qualified financial professional.
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