Recommended by the government’s development bank, which helps SMEs get finance
Best Business Loans for Startups
Discover the best business loans for startups in the UK. Explore funding options, and find trusted lenders for new businesses.
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Compare some of the best business loans for startups using the Funding Options lending panel
What is a Business Loan?
A business loan is a type of finance that helps companies — especially startups and new businesses — access the funds they need for growth, stability, or day-to-day operations. In simple terms, it’s when a bank, lender, or alternative finance provider lends money to a business, which is then repaid over time with interest.
The best business loans for startups in the UK come in many forms, including unsecured loans, secured loans, government-backed startup loans for new businesses, and revolving credit facilities. The right option will depend on your trading history, financial profile, and whether you can provide security.
When asking “what is the best business loan for startups in the UK?”, the answer often depends on whether you choose traditional banks, specialist lenders, or a broker who can access multiple funding options. By comparing the best banks for startup business loans alongside the best lenders for new business loans, startups and sole traders can find tailored financing solutions — whether it’s for working capital, expansion funding, refinancing, or managing cash flow.
Benefits of Taking Out a Business Loan
The best business loans for startups in the UK provide essential funding to manage cash flow, invest in growth, or stabilise operations. By exploring options through the best banks for startup business loans or comparing offers from the best lenders for new business loans, startups and new businesses can find the right funding solution. Here are the key advantages of tailored startup loan options:
Access to Working Capital
Cover day-to-day expenses, payroll, or stock purchases during quieter trading periods with flexible startup loans for new businesses.
Support for Growth
Use loan funding to expand premises, hire staff, or launch marketing campaigns to scale your business.
Flexible Use of Funds
Apply capital to equipment, vehicles, marketing, refinancing, or other business needs with the best business loans for startups.
Build Business Credit
On-time repayments can strengthen your credit profile, making it easier to secure future funding from the best banks for startup business loans.
Variety of Options
From secured and unsecured loans to government-backed schemes and revolving credit facilities, the best lenders for new business loans can help you find the right fit.
Quick Access to Funds
Many business financing options for SMEs offer fast approval, giving small businesses access to capital when it’s needed most.
About Funding Options
Funding Options is our trusted UK partner that helps entrepreneurs access the best business loans for startups. With one simple application, their Funding Cloud technology matches your profile to over 120+ lenders — returning tailored results in minutes without affecting your credit score.
Whether you’re asking “what is the best business loan for startups in the UK?”, comparing offers from the best banks for startup business loans, or exploring finance with the best lenders for new business loans, Funding Options makes the process simple. Their panel covers a wide range of funding, including unsecured and secured loans, government-backed startup loans for new businesses, revolving credit, invoice finance, merchant cash advances, bridging loans, and commercial property finance.
With Funding Options, startups, sole traders, and growing businesses can quickly find the right loan to manage cash flow, support growth, or launch new projects.
How to Compare the Best Business Loans for Startups
StartupDeals.co.uk has partnered with Funding Options to help you compare the best business loans for startups in the UK. With one simple application, their Funding Cloud technology reviews your profile and matches you with over 120+ lenders — including the best banks for startup business loans and specialist providers. This makes it easy to explore a wide range of funding options, from unsecured and secured loans to government-backed startup loans for new businesses. By comparing offers from the best lenders for new business loans, you can quickly find tailored finance solutions to cover working capital, growth, and cash flow, with a free process that takes only minutes and doesn’t affect your credit score.
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Choosing the Best Business Loan Type
When exploring the best business loans for startups in the UK, it’s important to consider your goals, cash flow, and whether you can provide security. These factors will determine which loan type is most suitable for your business, from unsecured and secured options to government-backed startup loans for new businesses. By comparing offers from the best banks for startup business loans alongside the best lenders for new business loans, you can identify the right funding solution to support growth, manage cash flow, or invest in new opportunities.
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?
Eligibility for the best business loans for startups in the UK depends on your business type, stage, and financial circumstances. While criteria vary across providers — from the best banks for startup business loans to the best lenders for new business loans — most will consider factors like trading history, revenue, and credit profile. With platforms like Funding Options, startups, sole traders, and growing companies can access tailored startup loans for new businesses that fit their needs.
- 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 is a business loan and how does it work for startups?
A business loan provides funding that startups and new businesses can use to cover working capital, growth, or expansion, which is repaid over time with interest.
What is the best business loan for startups in the UK?
The best option depends on your financial profile, trading history, and funding goals. Startups can explore loans from banks, government-backed schemes, or specialist lenders.
Who can apply for the best business loans for startups in the UK?
Most startups, sole traders, and small companies are eligible to apply, though requirements may vary depending on the lender and loan type.
What are startup loans for new businesses and how do they work?
Startup loans for new businesses are designed to help first-time founders and young companies access essential capital to cover setup costs, marketing, or cash flow.
Which banks are considered among the best banks for startup business loans?
Major UK banks such as Barclays, HSBC, and NatWest offer business loan products for startups, though approval often depends on your credit history and business plan.
Who are some of the best lenders for new business loans in the UK?
Alternative lenders like Funding Options’ partners can provide flexible loans for startups, often with quicker approvals and more tailored terms than traditional banks.
Do I need good credit to access the best business loans for startups?
Not always. While some banks require strong credit, alternative lenders may offer startup loans with more flexible requirements.
What documents are usually required to apply for a startup loan in the UK?
Typically, lenders may ask for identification, financial statements, bank records, and in some cases, a business plan for new startups.
How quickly can I access funding once my startup loan is approved?
Depending on the lender, funds can sometimes be released within 24–48 hours after approval.
10. Are government-backed startup loans for new businesses still available in the UK?
Yes — schemes such as the UK Government’s Startup Loan Programme continue to support entrepreneurs with affordable loans and mentoring.
FAQs: About Funding Options
Is Funding Options a lender or a broker for startup loans?
Funding Options is a broker, not a direct lender. They connect startups and new businesses with the best banks for startup business loans and the best lenders for new business loans through one simple application.
Does using Funding Options affect my credit score when applying for a startup loan?
No — Funding Options uses a soft credit check, so exploring the best business loans for startups will not affect your credit score.
How does Funding Options match my startup to lenders?
Their Funding Cloud technology reviews your business profile and matches you with over 120+ lenders, including banks and specialist providers offering startup loans for new businesses.
Are there any fees for using Funding Options to find a startup loan?
No — there’s no fee for comparing or applying. You can access tailored options for the best business loans for startups at no cost.
Can startups use Funding Options to find funding?
Yes — Funding Options specialises in helping small businesses and startups quickly compare the best lenders for new business loans to secure the right finance.
How fast can Funding Options help my startup secure funding?
In many cases, once approved, funds can be available within 24–48 hours — making it one of the quickest ways to access startup loans for new businesses.
What loan types for startups can I compare through Funding Options?
You can explore unsecured and secured loans, government-backed startup loans for new businesses, revolving credit, invoice finance, bridging loans, and more.
Is Funding Options safe for startups to use?
Yes — Funding Options is an FCA-regulated and trusted across the UK, ensuring startups can confidently compare the best business loans for startups in a secure environment.
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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