Business loan options
The lowest headline rate is not always the best outcome. The purpose, repayment period, security and way cash enters the business all affect which structure is suitable.
A lump sum repaid over an agreed term, normally through fixed regular payments. Useful when the cost and return of a project can be planned with reasonable confidence.
Often considered for: Growth investment, premises, stock, refurbishment or a defined project.
Check carefully: Total cost, early repayment terms, security and whether repayments fit cash flow.
Finance designed to support day-to-day cash flow or a short timing gap rather than a single long-lived asset.
Often considered for: Wages, tax, suppliers, seasonal demand or the delay between completing work and being paid.
Check carefully: Shorter terms can create higher regular repayments. Match the term to the actual cash-flow gap.
Funding linked to machinery, equipment or vehicles. Hire purchase and leasing structures spread the cost rather than requiring the full purchase price upfront.
Often considered for: Vehicles, production equipment, technology and other identifiable business assets.
Check carefully: Ownership, deposits, maintenance responsibilities, balloon payments and end-of-term conditions.
A facility based on unpaid business-to-business invoices. A proportion of eligible invoice value may be released before the customer pays.
Often considered for: Businesses with reliable B2B customers and a material debtor book.
Check carefully: Service fees, concentration limits, recourse, customer notification and disputed invoices.
A flexible limit that can be drawn, repaid and used again, subject to the provider's terms. Interest is usually charged on the amount drawn.
Often considered for: Recurring short-term working-capital needs where the balance changes over time.
Check carefully: Availability can be reviewed or reduced. Compare drawdown fees, interest and facility charges.
Facilities structured around purchasing stock, materials or fulfilling customer orders, including some domestic and international trade arrangements.
Often considered for: Businesses with confirmed orders or a repeatable stock-to-sale cycle.
Check carefully: Supplier terms, order evidence, gross margin, currency exposure and the time to convert stock into cash.
Government-backed route
The scheme can support term loans, overdrafts, asset finance, invoice finance and asset-based lending. It does not replace the lender's assessment and is not always the cheapest or most suitable route.
Understand the scheme70%
Guarantee to the accredited lender
It is not a guarantee to the business. The borrower remains responsible for the full debt and must meet the lender's criteria.
Initial funding check