Business Loans for UK Businesses

A business loan gives your company a lump sum to invest in growth, cover day to day operations or handle an unexpected cost, repaid over an agreed term. Sadi's Commercial Finance compares business loans across a panel of more than 300 UK lenders, so you see what the market will actually offer rather than what one bank happens to say.

We are an NACFB and FIBA member firm. Where a business loan is not the right answer, we will tell you, and point you at the product that is.

Who business loans are for

  • Established SMEs funding working capital or a seasonal gap
  • Companies expanding, opening a second site or hiring ahead of growth
  • Businesses buying stock, equipment or a competitor
  • Owners consolidating expensive short-term borrowing
  • Firms covering a VAT or corporation tax bill without draining cash reserves

Secured and unsecured business loans

Unsecured

No asset is pledged. Decisions are faster and there is no valuation to wait for. Amounts are smaller, terms shorter, and pricing reflects the extra risk the lender is taking. A personal guarantee from the directors is almost always required, which is normal rather than a warning sign, but you should understand what it means before signing.

Secured

Backed by an asset, usually property, sometimes plant or debtors. Larger amounts, longer terms and better pricing, at the cost of a valuation, legal work and a slower process. If you own commercial premises, secured borrowing is almost always the cheaper route.

Which to choose

It usually comes down to how fast you need the money against how much it costs. If the funding buys an opportunity that disappears in a fortnight, unsecured speed is worth paying for. If it funds something structural, secured borrowing costs less over the life of the loan.

How much you can borrow

Unsecured business loans commonly run from around £10,000 up to several hundred thousand, and higher for strong trading businesses. Secured lending is driven by the value of the asset rather than turnover, so it can go considerably further. Most lenders size an unsecured facility against annual turnover, and affordability is tested on your ability to service the repayment out of trading profit.

What lenders assess

  • Trading history. Two years or more is the comfortable position. Some lenders will consider 6 to 12 months, usually at a higher rate or a lower amount.
  • Turnover and profitability. Not just the headline figure, but whether the business can service the repayment without strain.
  • Credit profile. Both the company and the directors. Adverse credit does not automatically stop a deal, it narrows the lender list.
  • Existing debt. What else is being serviced, and whether anything sits ahead of the new lender.
  • Sector. Some lenders avoid particular sectors entirely, which is a common reason a direct application fails.
  • Purpose. A clear, specific use of funds is treated very differently from a vague one.

What business loans cost

Business lending is priced on risk, so there is no meaningful published rate. What you can budget for is the shape of the cost:

  • Interest. Set by the lender against your trading strength, security and term. The spread between the best and worst offer on the same deal can be substantial, which is the whole argument for comparing.
  • Arrangement fee. Common, and often deducted from the advance rather than paid separately.
  • Early repayment. Some lenders charge to settle early, some do not. Worth checking if you expect to repay ahead of term.
  • Valuation and legal costs. On secured lending only.
  • Broker fee. Disclosed to you in writing before you commit to anything.

These are indicative and vary by lender and circumstances. Actual terms are confirmed in the formal offer.

How long it takes

Unsecured facilities can complete in days once documentation is in, and sometimes within 24 to 72 hours for a clean case. Secured lending follows the property timetable, so expect weeks rather than days. The delay is almost never the decision, it is waiting on bank statements, filed accounts and management information. Having those ready is the single biggest thing you can do to speed it up.

When a business loan is not the right answer

A term loan is not always the best tool, and a broker who only sells loans will not tell you that. If the problem is customers paying slowly, invoice finance is usually cheaper. If you are buying equipment or vehicles, asset finance spreads the cost against the asset. If the need is unpredictable rather than a fixed sum, a revolving credit facility costs you nothing when undrawn. If card takings are your main income, a merchant cash advance flexes with turnover.

How to get a business loan with Sadi's Commercial Finance

  1. Speak to a specialist. Tell us how much you need and what it is for. A specialist reviews it and comes back to you the same working day.
  2. Share your trading position. Turnover, trading history and current borrowing, so we can gauge realistic options rather than guess.
  3. We search the panel. Secured and unsecured options across more than 300 lenders, not a single bank's offer.
  4. Compare terms. We present the deals that fit your goals and handle the paperwork through to underwriting.
  5. Drawdown. Once terms are agreed, funds are released, often in days rather than weeks on straightforward cases.

Business loans we have arranged

A Midlands-based manufacturer needed £100k to expand production. We secured an unsecured loan with a 3-year term and no early repayment fees.

We also arranged a £250,000 term loan under the Government Growth Guarantee Scheme for a UK tech-enabled service business. Read that case study, or browse all our case studies.

Why use a broker for a business loan

Applying directly to your own bank gives you one answer from one risk appetite. Applying to several yourself leaves a trail of credit searches that makes each subsequent lender more nervous. A broker submits once, to the lenders whose criteria you actually fit.

Jaff Sadi spent more than 25 years inside UK high street and commercial banking before founding the firm, on the side of the desk that approves and declines these applications. That is the difference between a case that reaches credit and one that gets through it. One specialist handles yours from first call to drawdown.

Frequently asked questions

How much can I borrow?

It depends on turnover, trading history, security and the purpose of the loan. Unsecured lending is commonly sized against annual turnover, while secured lending is driven by the value of the asset.

Should I choose a secured or unsecured business loan?

Unsecured is faster and needs no collateral but costs more and is capped lower. Secured unlocks larger amounts and better pricing but takes longer because of valuation and legal work.

How quickly can funds be released?

Unsecured facilities can complete in days, sometimes within 24 to 72 hours on a clean case. Secured lending follows the property timetable and takes weeks.

Do I need a personal guarantee?

On unsecured business lending, almost always. It is standard practice rather than a red flag, but understand what you are signing before you do.

Can I get a business loan with less than two years of accounts?

Often yes. Some lenders consider businesses trading for 6 to 12 months, usually at a higher rate or for a smaller amount. Newer businesses may find asset finance or invoice finance easier to access.

Will applying damage my credit file?

Multiple direct applications in a short period leave multiple searches, which makes later lenders more cautious. Going through a broker means the case is placed once, with lenders whose criteria you already fit.

Can I get a business loan with bad credit?

Frequently. Adverse credit narrows the lender list and affects pricing rather than ruling you out, particularly where there is security or strong trading behind the application.

Can I repay early?

Usually, but terms differ. Some lenders charge an early repayment fee and some do not, so it is worth confirming before you commit if you expect to settle ahead of term.

Related guides

Speak to a specialist about what you need, or apply for funding online.