Large Business Loans for UK Businesses
Larger borrowing involves more than choosing a bigger number. As a business’s funding requirement grows, the structure of the funding, the type of lender and what the business needs to demonstrate can all become more important.
Some businesses need a single general-purpose business loan. Others find that part of the requirement belongs in asset finance, property finance, acquisition finance or another specialist structure. This page explains what can change as requirements grow, and Wize Finance can help you work out which route may fit and, where appropriate, connect you with a suitable funding provider.
Share the amount, what it will fund and the security or assets involved. The team reviews your enquiry and discusses how a larger facility could be structured.
What can change
- Who lends
- Structure
- What lenders assess
Is there a set size for a large business loan?
There is no universal threshold.
Lenders use the word “large” differently. Some banks apply it to borrowing in the lower six figures, while some specialist lenders reserve it for facilities of around £1 million or more.
So this page does not set a number. It looks at what starts to change as the size and complexity of a funding requirement increase: who lends, how the borrowing is structured, what a lender wants to understand, and whether a general business loan is the right type of finance at all.
If you already have a specific amount in mind, the Business Loans section includes guides to particular loan sizes.
How the lender landscape can change
Different types of lender tend to operate at different scales. As a requirement grows, the range of lenders that may consider it can change, and so can the way they assess it.
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Online and specialist lenders
Some online and specialist business loan providers work mainly in the lower and middle six-figure range. Others lend into the high six figures, or to around £1 million and beyond. Their processes can be more standardised, and what they offer may depend closely on the business’s trading figures.
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Banks and commercial lenders
Banks and other commercial lenders may consider substantially larger facilities, including multi-million-pound requirements. Their assessment may be more involved, with more emphasis on the business’s financial strength, its management, the purpose of the borrowing, forecasts and, where relevant, security. These are sometimes described as commercial business loans.
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Sector specialists
Some lenders focus on particular sectors or types of business. A lender’s appetite can depend on the sector and the transaction as well as the amount, so two businesses seeking similar sums may find different lenders interested.
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Lending supported by several assets
For some larger or more complex requirements, funding may be supported by several types of business asset together, such as receivables, stock, equipment and property. This is sometimes called asset-based lending. It works differently from a standard loan, and whether it is suitable depends on the business, its assets and the lender.
Borrowing around £1 million
Around £1 million is a meaningful point in some lenders’ product ranges, but it is not a universal market threshold. Some providers operate below or around this level, while banks and commercial lenders may consider considerably larger facilities. Once a requirement reaches this kind of scale, the type of lender and the structure of the funding can matter as much as the amount.
Does the requirement belong in a business loan?
At larger sizes, the purpose of the funding can say more about the right type of finance than the size alone. Working that out first can save time with lenders who are not suited to the requirement.
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General business investment
A larger business loan may be relevant where the requirement combines general business costs, such as expansion expenditure, implementation costs, fit-out, the working capital that goes with a wider project, or other defined general-purpose spending. Where no single asset, property or transaction makes up most of the requirement, this is the area the rest of this page focuses on.
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Machinery, equipment or vehicles
Where the requirement mainly relates to identifiable business assets, Asset Finance may be more suitable. It is a separate type of finance, in which the agreement is linked to the assets being funded.
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Commercial property
Where the requirement mainly relates to buying, refinancing or developing commercial property, Property Finance covers the routes designed for that.
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Buying a business or a management buyout
Where the funding relates to acquiring a business, or to a management team buying the business it runs, see Acquisition Finance.
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Refinancing existing borrowing
Where the main aim is to replace or restructure borrowing the business already has, this may be better treated as a refinancing requirement. Changing the structure or repayment period of existing borrowing can affect both the regular repayments and the overall cost, and it does not automatically save money.
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Cash tied up in invoices
Where the need comes mainly from customers taking time to pay, Invoice Finance may be worth considering.
Secured and unsecured borrowing at larger sizes
Some lenders offer unsecured borrowing into the high six figures and beyond, but availability varies and may narrow as facility size increases. See Unsecured Business Loans for how unsecured borrowing works.
Larger facilities may also involve agreed security. A loan does not need security just because it is large: whether security is involved depends on the lender, the product, the business and the purpose. For how secured borrowing works, see Secured Business Loans. For the questions worth asking about security and guarantees on a substantial facility, including what they cover and what they are worth relative to the borrowing, see £500,000 Business Loan.
Tell us what you need.
How larger facilities may be structured
At larger sizes, choices about structure can affect the total cost and flexibility of the borrowing as much as the headline rate.
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Longer repayment terms
Some larger commercial facilities can run over considerably longer periods than shorter-term business borrowing, particularly where the purpose and the life of what is being funded support it. A longer term can reduce the regular repayment, but it may increase the total interest paid and keeps the business committed for longer. Matching the term to how long the investment is expected to produce value is a useful starting point.
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Fixed or variable rates
Larger facilities may be offered with fixed pricing, variable pricing linked to a reference interest rate, or a choice between the two. A fixed rate gives more certainty about repayments over the agreed period. A variable rate can change when the reference rate changes, so repayments may rise or fall during the term.
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Repaying early
Early-repayment terms can differ between fixed and variable facilities, and between lenders. If the business may want to repay early, for example after selling an asset or once a project is generating income, it is worth checking how early repayment would be treated before choosing a structure.
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Interest-only periods
Some commercial lenders may offer an interest-only period in specific circumstances, subject to their own assessment.
What lenders may assess on a larger application
On a larger application, a lender may look beyond the figures to the people running the business and the plan behind the request. Each lender sets its own criteria.
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The management and ownership
A lender may want to understand who runs the business, the experience of the management team and the track record of the owners. For a significant facility, confidence in the people delivering the plan can carry real weight.
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The plan for the money
A lender may want a clear explanation of:
- what the money will fund
- why the business needs it
- when the investment is expected to produce value
- how the borrowing is expected to be repaid
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Forecasts
For larger or more complex applications, forecasts may help a lender understand how the business expects its finances to develop over the period of the borrowing.
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Business performance and cash flow
A lender may consider turnover, profitability, cash flow and existing commitments, and whether the size of the borrowing appears proportionate to the business. There is no single figure that applies across lenders.
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Sector
Some lenders specialise in particular sectors. The sector can affect which lenders are interested and the structure they offer.
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Security
Where security is involved, a lender may also assess what is offered (see “Secured and unsecured borrowing at larger sizes” above).
Preparing for a larger business loan application
Depending on the lender, product and transaction, it may help to have:
Not every application will need all of these. On a larger request, the plan, the people and the existing borrowing may need explaining in more depth than the routine documents.
One facility or several?
At larger sizes, a useful question is whether one facility could support several parts of the requirement.
One larger facility can sometimes simplify agreements, repayments and security arrangements. It may also involve broader security, more detailed reporting or different lender conditions. Separate facilities may fit each purpose more closely, but they can mean more agreements, fees and repayment schedules, and interactions between security arrangements.
At larger scale, asset-based lending may sometimes provide one facility supported by several types of asset.
Neither structure is automatically better. What matters is how each would work across the whole requirement, so it's worth setting out every part when you enquire.
How Wize Finance works
Wize Finance uses the information you provide to understand the funding requirement and, where appropriate, introduces the business to a funding provider. The lender assesses the application and makes the lending decision.
For larger or more complex requirements, the information needed to understand the funding structure may be more detailed.
- Your company
- Wize Finance introduces the business to a funding provider
- The lender assesses the application and makes the lending decision
After you submit your details, the Wize Finance team reviews your enquiry and contacts you to discuss your funding needs and next steps. Where appropriate, your details can then be shared with a suitable funding provider.
What to compare
For a larger facility, compare where applicable:
- the regular repayment commitment
- total amount repayable
- pricing or rate
- whether the rate is fixed or variable
- repayment term
- fees
- repayment frequency
- early-repayment conditions
- what security is being taken
- any guarantee requirements
- any conditions that apply during the facility
- the total commitment across existing and proposed borrowing
Third-party costs, such as legal and valuation fees, are covered in the £500,000 Business Loan guide.
Large Business Loans: frequently asked questions
What counts as a large business loan?
There is no fixed definition. Some lenders use the term for borrowing in the lower six figures, while others reserve it for facilities of around £1 million or more. What matters more than the label is how the size and complexity of the requirement affect the type of lender, the structure and what the lender wants to understand.
Can a large business loan be unsecured?
It can be. Some lenders offer unsecured borrowing at larger amounts, but availability depends on the lender, the product and the business, and options may narrow as the amount grows. Larger facilities may also involve agreed security, depending on the arrangement.
How long can a large business loan run?
Terms vary considerably between lenders and products. Some larger commercial facilities can run over considerably longer periods than shorter-term borrowing, particularly where the purpose and the life of what is being funded support it. A longer term can lower each repayment but usually increases the total interest paid.
What do lenders look at when considering a larger business loan?
Depending on the lender, they may look at the experience of the management team, the business’s financial performance and cash flow, the plan for the money and how it will be repaid, forecasts, existing borrowing and, where relevant, security. The sector can also affect which lenders are interested.
Should property, equipment or a business acquisition use a large business loan?
Not necessarily. Requirements that are mainly for commercial property, machinery or vehicles, or buying a business, may be better suited to property finance, asset finance or acquisition finance. A general business loan is most relevant where the requirement combines several general business costs.
Planning a larger funding requirement?
Tell us roughly how much the business needs, what the funding is for, and whether the requirement includes property, equipment, an acquisition or refinancing. That context can help identify the most appropriate route.