Business Loans for UK Businesses
Borrow for working capital, stock, growth or refinancing, and find out which type of business loan fits what the money is for.
Wize Finance can help you access suitable business funding through its referral route, including loans, asset and invoice finance and specialist funding. You can enquire as a sole trader, company or other business structure, before or after you start trading. The provider decides eligibility and any offer.
Tell us how much you need, what it's for and how your business is set up. The team reviews your enquiry and discusses which types of loan may fit.
- Not sure which loan suits you? See how to choose ↓
- Know how much you need? Go to loan amounts ↓
What lenders look at
- Time trading
- Affordability
- Purpose
What is a business loan?
A business loan is money your company borrows for business purposes and repays, with interest or charges, on terms agreed with the lender.
The most familiar form is a term loan: a lump sum repaid in regular instalments over a set period. A revolving facility, such as a business line of credit, lets you draw funds up to an agreed limit, repay and draw again. Some related options work differently again: a merchant cash advance, for example, is an advance repaid from a share of future card takings rather than a loan in the traditional sense.
Whichever structure you choose, affordability is an important part of a lender’s decision, but it isn’t the only one. Lenders also weigh trading history, financial performance, existing borrowing, credit profile, the purpose of the funding, any security or personal guarantee, and their own criteria.
- trading history
- financial performance
- existing borrowing
- credit profile
- the purpose of the funding
- any security or personal guarantee
- their own criteria
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A loan isn’t the only way to fund a business, and it isn’t always the best one. If the money is for a specific piece of equipment, is tied up in unpaid invoices, is for property, or you’d rather not take on debt at all, a different type of finance may suit you better. When a business loan isn’t the right fit ↓
Start with your situation, not a lender.
Tell us about your company once. We’ll help you understand which types of finance may fit before explaining the next step.
Choosing the right business loan
The right loan depends less on the product name and more on your situation. Five questions narrow it down.
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What is the money for? A one-off project or purchase may suit a fixed-term loan with predictable repayments. Covering day-to-day costs or uneven income can suit something more flexible.
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How much do you need, and for how long? Borrow for the need, not the most a lender might offer. A longer term can lower each repayment but may mean paying more in total, depending on the product.
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How established is the business? Companies with a trading record and filed accounts may have more options. Early-stage companies may have fewer, with availability depending heavily on lender and product criteria. Startup Business Loans · Government Business Loans
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Fixed term or flexible facility? A term loan gives you a set amount and a set repayment schedule. A Business Line of Credit lets you draw, repay and draw again up to a limit. A Merchant Cash Advance is an advance rather than a loan, repaid as a share of your card sales, so repayments rise and fall with takings.
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Can the business offer security? Secured borrowing is backed by an asset, which can open up larger amounts or longer terms but puts that asset at risk. Unsecured borrowing needs no asset, though a director may be asked for a personal guarantee. Secured vs unsecured ↓
If you’re still unsure, that’s fine. The most useful place to start an enquiry is simply telling us what the money is for.
Start your enquiryTypes of business loan
The main loan structures
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Borrowing without pledging a specific business asset. Lenders assess the business’s trading, financial performance and affordability. Depending on the lender, a personal guarantee may still be requested.
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Borrowing backed by an asset, often property. Can suit larger or longer-term needs. The asset is at risk if repayments aren’t kept up.
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For the everyday costs of running the business: payroll, suppliers, seasonal dips, or the gap between paying out and getting paid.
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Repaid over a shorter period for a defined, temporary need. Repayments may be higher than over a longer term, but the borrowing is cleared sooner.
For more specific needs
Business loan options for more specific needs
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Product: Small Business Loans
Suits a business that… is a smaller business looking at which loan options fit its size (a guide by business size, not a separate product)
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Product: Fast Business Loans
Suits a business that… needs funding on a tight timeline and wants to know what affects speed
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Product: Merchant Cash Advance
Suits a business that… takes regular card payments and prefers repayments that follow takings
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Product: Business Line of Credit
Suits a business that… needs ongoing access to funds rather than a one-off sum
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Product: Stock Finance
Suits a business that… needs to buy stock ahead of selling it
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Product: VAT Finance
Suits a business that… wants to spread the cost of a VAT bill
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Product: Franchise Finance
Suits a business that… is buying into or expanding a franchise
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Product: Business Refinancing & Debt Consolidation
Suits a business that… wants to replace or combine existing business borrowing
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Product: Startup Business Loans
Suits a business that… is at an early stage or has limited trading history; availability depends heavily on lender and product criteria
What does a business loan cost?
The cost depends on how much you borrow, for how long, whether it’s secured, how the lender views the business’s risk, and the type of product.
When you compare offers, look at:
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Interest rate and APR, where quoted
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Total amount repayable: the clearest single figure for comparing like with like
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Arrangement or completion fees: sometimes deducted from the money you receive
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Early repayment charges: what it costs to clear the loan ahead of schedule
A lower monthly payment spread over a longer term can mean paying more overall, so compare the total cost, not just the monthly figure.
Products repaid from card takings are priced differently. See Merchant Cash Advance for how that works.
Documents to have ready
Lenders decide what they need, and requests vary by lender, product and amount. It helps to have these to hand:
Being prepared won’t guarantee an approval, but it can avoid back-and-forth once a lender starts reviewing your application.
What happens after you enquire
What affects how long it takes Missing or out-of-date documents, extra questions during underwriting, security valuations, and legal work for secured loans or personal guarantees can all add time.
Wize Finance
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You tell us about your business. What the money is for, roughly how much you need, and some basic company details. The short enquiry asks roughly how much you’re looking for, which business it’s for and how to contact you.
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We take an initial look. We check what you’ve told us against the kinds of funding that could fit. After you submit your details, the Wize Finance team reviews your enquiry and contacts you to discuss your funding needs and next steps.
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We refer you to an appropriate funding route. Where appropriate, your details can then be shared with a suitable funding provider.
The lender
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You apply to the lender. The funding provider may ask for documents and more detail about the business.
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The lender reviews your application. This is underwriting: checking accounts, bank statements, credit history and affordability. It may come back with questions.
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The lender decides. The lending decision is the lender’s, not Wize Finance’s. An offer may be for a different amount or on different terms from what you asked for, and an application can be declined.
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Funding. Once you accept an offer and complete the agreement, plus any security or guarantee paperwork, the lender releases the money.
Credit searches
Depending on the product and process, a lender may carry out two different kinds of check.
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Business credit checks look at the company’s own credit file: its filing history, payment behaviour, any county court judgments and existing borrowing. They form part of how a lender assesses the company and don’t follow quite the same soft/hard framework as personal credit.
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Personal credit searches on directors look at a director’s own file, particularly where a personal guarantee is involved. A soft search is visible only to the individual and doesn’t affect their score; a hard search is recorded and can be seen by other lenders, and several in a short space of time can count against an applicant.
Which checks happen, and when, varies by lender. Before you submit a full application, it’s reasonable to ask what checks will be carried out and whether any personal search will be soft or hard.
How Wize Finance works
We don’t lend money or make credit decisions.
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Our role is to understand what your business needs, explain the options in plain terms, and introduce you to a suitable funding provider.
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The lender’s role is to assess your application, decide whether to lend, set the terms, and provide the money.
How much do you need?
What a lender offers depends on its overall assessment of the business, including affordability, not just the amount you ask for. If you already have a figure in mind, these guides explain what to expect at each level.
Need a different amount? Tell us in your enquiry. These pages are guides to common loan sizes, not limits. Large Business Loans
What can a business loan be used for?
A range of legitimate business purposes, subject to lender criteria. Common reasons include:
Some needs have better-suited options. If you’re buying equipment or vehicles, Asset Finance can use the asset itself to secure the funding. If you’re buying or developing property, Property Finance is built for that.
A business loan must be used for the business. Using it for personal spending can put you in breach of the loan agreement.
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Working capital: covering wages, suppliers and running costs through quieter periods
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Stock: buying ahead of a busy season or a large order
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Recruitment: taking on staff before the revenue they’ll bring in arrives
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Expansion: new premises fit-out, new locations or new markets
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Tax and VAT bills: spreading a large liability (VAT Finance)
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Refinancing: replacing or combining existing business borrowing (Business Refinancing & Debt Consolidation)
What lenders look at
Every lender sets its own criteria, and they can differ between products. There’s no single checklist, but these factors commonly shape a decision:
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Time trading: how long the company has been operating
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Turnover: how much the business brings in, and how consistently
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Affordability: whether cash flow can cover repayments alongside existing commitments
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Existing borrowing: what the business already owes and to whom
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Credit history: the company’s and, often, the directors’
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Purpose: what the money is for and how it will be repaid
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Sector: some lenders are more comfortable with some industries than others
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Security and guarantees: whether an asset or a personal guarantee can be offered
Lenders look at these together, and each weighs them differently. We can help you understand what lenders may focus on for your business.
Wize Finance works with UK sole traders, limited liability partnerships (LLPs), limited companies and PLCs. Which products and lenders are available can depend on how your business is set up. If you’re a sole trader, see Sole Trader Business Loans.
Secured, unsecured and personal guarantees
What is a personal guarantee? A personal guarantee is a promise by a director, or another individual, to repay the company’s debt personally if the company can’t. Whether one is required varies by lender and product, and it can apply to unsecured as well as secured borrowing, so “unsecured” doesn’t automatically mean there’s no personal exposure.
Before signing one, check what it covers, whether it’s capped at a set amount, and how long it lasts. It’s worth taking independent advice.
Secured and unsecured loans compared
Secured loan
- Security taken
- Secured loan Specified security, such as property or other business assets, where the lender requires it
- Personal guarantee position
- Secured loan A guarantee may also be requested, depending on the lender and product
- Typical structure
- Secured loan Can suit larger amounts or longer terms, subject to lender criteria
- Key implication for the borrower
- Secured loan The secured asset may be at risk if repayments aren’t kept up
Unsecured loan
- Security taken
- Unsecured loan No specific asset is pledged as security
- Personal guarantee position
- Unsecured loan A guarantee may be requested; requirements vary by lender and product
- Typical structure
- Unsecured loan Amount and term depend on the lender’s assessment of the business
- Key implication for the borrower
- Unsecured loan No asset is pledged, but a director may still have personal exposure if a guarantee is given
More detail: Secured Business Loans · Unsecured Business Loans · Business loans without a personal guarantee
When a business loan isn’t the right fit
A loan is one way to fund a business. Depending on what you need, another structure may work better.
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If you're… Buying equipment, machinery or vehicles
Consider Asset Finance: funding secured on the asset you’re buying
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If you're… Waiting on unpaid customer invoices
Consider Invoice Finance: releasing cash tied up in what you’re owed
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If you're… Buying, developing or refurbishing property, or bridging a short gap
Consider Property Finance: lending designed around property
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If you're… Looking for funding you don’t repay
Consider Business Grants: usually competitive and tied to specific purposes
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If you're… Willing to sell a share of the business for growth capital
Consider Equity Finance: investment in exchange for ownership
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If you're… Buying another business
Consider Acquisition Finance: funding structured around a purchase
Not sure which fits? Explore all business finance options
Business loan FAQs
How does a business loan work?
Your company borrows an agreed amount and repays it, usually with interest, over an agreed term. A revolving facility such as a line of credit works differently, and related funding such as a merchant cash advance is an advance repaid from card takings rather than a loan.
How much can my business borrow?
It depends on the lender’s assessment: affordability is important, alongside trading history, financial performance, existing borrowing, credit profile, purpose, any security available and the lender’s own criteria. Our loan amount guides ↑ cover common sizes. Wize Finance can help with funding requirements from £10,000 to £10 million.
What do lenders consider when deciding?
Typically time trading, turnover, affordability, existing debts, credit history, the purpose of the loan, the sector and whether security or a personal guarantee is offered. Each lender weighs these differently.
Will an enquiry affect my credit score?
Lenders may check the company’s credit file, a director’s personal file, or both. A soft personal search doesn’t affect a director’s score; a hard search is recorded and visible to other lenders.
Do I need security or a personal guarantee?
It depends on the lender and product. Secured loans involve specified security; unsecured loans don’t, but a lender may still ask a director for a personal guarantee. Read what any guarantee covers before you sign.
How long does it take to get funded?
It varies by lender, product and how complete your application is. Secured loans and anything needing a valuation or legal work can take longer.
Can a new business get a loan?
Options for early-stage businesses are more limited and depend heavily on lender and product criteria, but some exist, including government-backed start-up lending. See Startup Business Loans and Government Business Loans.
Is Wize Finance a lender?
No. Wize Finance reviews your circumstances, discusses the options with you and, where appropriate, introduces you to a suitable funding provider. The lender assesses your application, makes the decision and provides the funds.
Ready to talk about funding?
Tell us what your company needs the money for and roughly how much, and we’ll explain the next step.
You don’t need to know which lender — or even which type of finance — is right before you enquire. Tell us what you’re trying to achieve, and Wize Finance will review your circumstances, discuss the options with you and, where appropriate, connect you with a suitable funding provider.