Small business loans UK are a type of commercial financing that help small firms pay for their ongoing operating expenses. A lender or high street bank will frequently offer the loan, which is either unsecured or secured against an asset.
Small business loans UK give new and small companies the financial push they might require to be successful. They can be used for a variety of things, ranging from controlling cash flow to corporate expansion, and they make it possible for organizations to expand while maintaining low expenses.
When business owners borrow money from a lender, the lender’s terms of agreement include a repayment schedule. The money is subsequently repaid with interest over a predetermined repayment period in regular monthly payments.
The Two Main Category of Small Business Loans Includes:
- Secured Business Loans
- Unsecured Business Loans
Secured Business Loans
Secured small business loans UK, gives access to capital on the condition that they provide “security” in the event that they are unable to repay the loan. This security covers corporate possessions including real estate and machinery. If the repayment is unsuccessful, the lender will seize these assets.
Small firms with access to valuable assets that they can use as collateral benefit most from these small business loans UK. Lenders will take into account the proposed asset when considering a secured loan application, and they might even request an asset assessment.
Unsecured Business Loans
Unsecured small business loans UK let entrepreneurs borrow money without pledging expensive company assets as collateral to the lender. For small enterprises that might not have assets to use as collateral for delinquent loan repayments, this is a popular funding alternative.
Small unsecured business loans frequently require a director’s personal guarantee and frequently have higher interest rates. This legally binding guarantee holds the business owner personally responsible for making loan repayments in the event that the company misses a payment.
Best Small Business Loans In The UK 2025
- British Business Bank
- HSBC
- Natwest Group
- Barclays
- Lloyds Banking Group
- Metro Bank
- Halifax
- Zopa
- Tesco Bank (small business loan)
- Santander
- Sainsbury
- ABC Finance
- Capify
- Hope Capital
1. British Business Bank
According to official numbers released, the British Business Bank’s small business loans UK program has granted £500 million to small firms in the UK since it was established in 2012.
According to recent information from the government-backed program, 63,920 loans for a total of £7,823 have been made to small businesses around the UK.
The variety of the UK start-up community is reflected in the fact that nearly two-fifths of those who obtained loans (39.3 percent) were women, one in five (22 percent) were from BAME communities, and more than a third (36.5 percent) were unemployed when they applied for small business loan UK.
2. HSBC
Small business loans UK range from $1,000 to $25,000. The APR representative is 7.1%.
Fixed monthly payments may reduce the negative effects of a significant purchase on your daily cash flow.
No additional fees for repayments. You can choose to postpone your first repayment for 3, 6, or the whole life of the loan by choosing the January Holiday Repayment option, which waives all January installments. Small business loans UK Terms of repayment ranges from one year to ten years
3. Natwest Group
A Small Business Loan UK might be the best choice if you need financial support or assistance recovering from the pandemic. It is simple and quick to apply online from Natwest. Subject to approval, borrow up to £50,000 or up to £1,000.
No costs for agreements or early repayment. You can choose to repay over a period of 1 to 7 years, depending on your credit situation. On request, terms of up to 10 years may be made available. Fixed interest rates. The application process is quick and easy online, and all business clients are eligible.
4. Barclays
Barclays unsecured loans let you pick the length of your small business loan UK payments. They have set interest rates and the choice of a six-month grace period for repayment. However, throughout these times, interest will continue to accrue. Small business loans UK from Barclays are available for terms of one to ten years.
On loans between £1,000 and £25,000, Barclays business loans have a typical APR of 7.9 percent. When you apply for a business loan over £25,000, the APR will be sent to you.
5. Lloyd Banking Group
Lloyds Bank, one of the “Big Four” banks in the UK, with a more than 250-year history. In addition to business bank accounts, savings, debit and credit cards, and business financing, Lloyds Bank also provides services for small, medium, and large corporations.
With a secured or unsecured loan, you can borrow between small business loan UK ranging from £1,000 and $25,000. Flexible repayment schedule, 9.3% APR, and terms of 1 to 25 years (variable or fixed) Fixed Rate starting at 9.3 percent APR and Base Rate (variable) starting at 9.8 percent APR. flexibility to act as needed. No fees for late repayment
6. Metro Bank
The first high street bank to launch in the UK in more than a century, Metro Bank, debuted in the summer of 2010.
They have straightforward borrowing options that can benefit your company. Your daily cash flow can be improved and freed up, and you can use the money to grow your company or buy new equipment.
They enable small businesses owners to discover the loan that works for them by offering small business loans UK with terms as short as 1 year and as long as 30.
With invoice financing, you can get up to 85% of your invoices within 24 hours; they’ll forward a portion of your invoice so you can concentrate on running your business rather than worrying about when your invoices will be paid.
7. Halifax
On loans requested between £7,500 and £25,000 for 1 to 5 years for small business loan UK, Halifax is offering an APR Representative of 3.9 percent. Different rates are offered for loans with different terms and quantities. Subject to permission, you are allowed to request up to two repayment holidays each year.
Your original term will be extended and you will pay more interest overall because interest is still levied for the months you don’t make any payments.
If you discover that you have extra money, they won’t charge you for paying more than the agreed-upon monthly amount.
Applying online is quick and simple, and there are no physical forms to fill out.
8. Zopa
In only 3 minutes, you can apply for Zopa’s personalized small business loans UK, letting you know exactly what you might be eligible for. The prices are frequently among the lowest available. Your credit score won’t be impacted if you use the link below to check your rates.
Your monthly payment for a £10,000 loan over five years will be £234.99 at a typical 15.4 percent APR. After five years, the total cost is £14,099.54, which comprises £0 in fees and £4,099.54 in fixed interest at a rate of 15.4 percent. The entire credit line is worth £10,000.
Your particular situation will determine the rate that is offered to you.
9. Tesco Bank
Tesco small business loans UK is offered between £7,500 and £25,000 for a period of 1 to 5 years. Loan durations of 1 to 10 years are offered, with amounts ranging from £1,000 to £35,000 available at various rates.
If you meet the requirements, you can request a two-month repayment delay at the beginning of your loan. This may enable you to repay your loan more quickly and save money overall.
Due to the two-month interest charge, this could help you save money on interest. The money might enter your account in as little as two hours. This will change based on how your application turns out. Your payments will be made on a day that works for you each month in the same amount.
10. Santander
Santander is aware of the need of giving businesses access to simple, flexible loans.
A Santander business loan can help you raise the money you need to fulfill your goals, whether you need to finance new inventory, renovate your space, or expand your enterprise.
The small business loan UK are adaptable since they don’t believe in limiting your alternatives; they can set your repayments up to be made over a 25-year period and offer both fixed and variable rate options.
Additionally, they have a committed and knowledgeable group of Relationship Directors who will take the time to get to know your company so they can provide the loan facility that satisfies your particular needs. Loans start at £25,00, and all sums are taken into account.
11. Sainsbury
Considering growing your company with a small business loan UK? Or whether you’re planning home improvements or purchasing a new work vehicle. A Sainsbury’s bank loan might provide the solution.
The following are the main aspects of applying for a loan with Sainsbury’s Bank:
When you borrow between £7,500 and £25,000 for 1 to 7 years, the representative APR is 3.4%. (depending on your loan value).
Pay back your loan in reasonable, fixed monthly installments over a period of one to seven years, depending on the loan’s size.
If you are a Nectar member, you may borrow up to £40,000; otherwise, you may borrow up to $25,000. There is no application or setup fee.
12. ABC Finance
The process is made incredibly simple by the company’s skilled staff. Your devoted counsel will oversee the application from taking your initial inquiry to the quick conclusion of funds in applying for a small business loan UK. They provide ongoing support to ensure you have the best chance of success because there may still be a lot of work to do after the application has been submitted.
They offer small business loans UK ranging from £500 to £1,000,000 or even more with the correct application. They ensure due investigation to make sure that any borrowing won’t put a hardship on your company.
13. Capify
Loans from £5,000 to as much as £150,000, or 75% of your average monthly revenue, are available through Capify Small Business Loans UK, which are intended to give small enterprises the money they require. Flexible terms are available for repayment, ranging from modest daily payments to sizeable weekly ones.
14. Hope Capital
A small business loans UK lender with a focus on bridging loans is Hope Capital. Hope Capital, a principal lender with a base in Liverpool, is said to have a team with in-depth expertise of the real estate industry.
The Small business loans UK they offer start at £100k and have a maximum LTV of 75%. In the UK, Hope Capital works with residential, commercial, and land-related property developments.
How do i get a loan to start a business in Uk?
Around 5.7 million small companies in the UK are run by people just like you. Many of them had the desire to work for themselves and jumped at the chance as soon as it presented itself.
Others started their own businesses because they had talents, goods, or services that they thought would bring in money. Some people may have started their own businesses as a result of layoffs or extended unemployment.
These 5.7 million businesses all have one thing in common, regardless of what they offer or do at some point anyone might need a small business loan UK.
Here are some of the greatest solutions to the conundrum of where to find funding for a new business:
- You can approach conventional lenders for business
- Partnerships
- Small business loans UK from either family and friends who could bail you out
- Crowdfunding
- Apply for business grants offered by either the governmentofr private sectors
- You can also explore the financial services listed above
Is it easy to get a business loan UK?
Yes, but because banks can sometimes be quite risk conservative, some new enterprises find it difficult to secure a small business loan UK.
The government established the Start Up Loan program for this reason. This offers individuals looking to launch a new business unsecured personal loans ranging from £500 to $25,000.
How much can i borrow to start a business UK?
A financial services firm loan ranges from £10,000 to £500,000, while the government’s recovery loan program is from £25,001 to £350,000.
