Quick Answer
A Business Loan in the UK typically ranges from £1,000 to £50,000. Most lenders offer 1–7 year repayment terms. Compare rates with our free tool or check eligibility without affecting your credit score.
- Shortest affordable term wins — low monthly ≠ cheap
- Early repayment is a legal right and usually worth it despite small fees
- Soft-search eligibility checkers first, then apply once
- Representative APR binds only 51% of borrowers — your rate may differ
Insider Notes
Consolidation is a tool, not a cure. Rolling cards into a loan lowers the rate but re-opens the credit lines. The failure mode is well documented: consolidated debts plus re-spent cards.
The representative APR is marketing, not a quote. Only 51% of accepted borrowers must get that rate — the rest can be charged substantially more. Personalised pre-approval rates are the only numbers worth comparing.
Match the borrowing tool to the purchase: 0% purchase cards beat loans for short-term spending, money-transfer cards can undercut small loans, and loans win for structured, longer-term borrowing. Run the numbers per purchase, not per instinct.
Business Loans — UK Guide 2025
A business loan is an unsecured personal loan used specifically for business purposes. Lenders may offer lower rates when the purpose is specified.
How Business Loans Work
You borrow a fixed amount and repay it in monthly instalments over an agreed term. The interest rate (APR) is fixed for the duration of the loan, so your payments stay the same each month.
Best Lenders for Business Loans (2025)
| Lender | Rep. APR | Max Amount | Term |
|---|---|---|---|
| Barclays | From 5.5% | £50,000 | 2–5 years |
| Santander | From 5.9% | £25,000 | 1–5 years |
| Tesco Bank | From 6.1% | £35,000 | 1–5 years |
| Post Office | From 6.5% | £25,000 | 1–5 years |
Eligibility Requirements
- Aged 18 or over and a UK resident
- Regular income (employed, self-employed, or pension)
- UK bank account
- Acceptable credit history (varies by lender)
Tips to Get the Best Business Loan Rate
- Check your credit score before applying
- Use soft-search eligibility checkers first
- Compare Total Amount Repayable, not just APR
- Consider a shorter term if you can afford higher monthly payments
- Avoid unnecessary add-ons like Payment Protection Insurance
Calculate Your Loan Repayments →
Frequently Asked Questions
Unsecured protects your home but costs more and caps around £25–50k. Only secure debt against your home when the rate saving is decisive and payments are certain.
Don't reapply immediately. Get your credit reports (all three bureaus are free), fix errors, register on the electoral roll, and wait 1–3 months before trying a better-matched lender.
Representative APR only has to be offered to just over half of accepted applicants. Nearly half of borrowers pay more — which is why a soft-search personalised quote matters.
Yes — the Consumer Credit Act guarantees it. Lenders can charge up to 1–2 months' interest, but early repayment usually still wins.
There's no single threshold — each lender scores differently. A 'good' band on any bureau opens most doors; below that, use eligibility checkers before applying.
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