How to get a business loan in the UK

"Business loan" covers a family of products rather than one thing. The routes a provider may consider depend on the purpose, company circumstances and its own criteria.

• Unsecured term loan — a fixed lump sum repaid over a set period, no asset pledged. Usually needs a personal guarantee from a director.
• Secured term loan — backed by property or other assets, typically larger amounts and longer terms.
• Revolving credit facility — a limit you draw down and repay as needed, useful for uneven cash flow.
• Invoice finance — advances against unpaid invoices, so the money tracks your sales ledger.
• Asset finance — funds a specific vehicle, machine or piece of equipment, secured on that asset.
• Merchant cash advance — repaid as a percentage of card takings, common in retail and hospitality.

Different lenders weight these differently, but almost every commercial decision comes back to the same short list:

• Trading history — how long the company has been active at Companies House and filing accounts.
• Turnover and its stability — steady revenue reassures more than a single strong month.
• Bank statements — most lenders read the last 3–12 months to see real cash movement.
• Affordability — whether the repayment fits alongside existing commitments.
• Existing debt — other loans, facilities and any outstanding charges registered against the company.
• Director profile — credit history and, in most unsecured cases, willingness to give a personal guarantee.
• Purpose — a specific use of funds with a clear return is far easier to underwrite than "working capital".

• Your Companies House registration number and the company's active status.
• Recent business bank statements.
• Latest filed accounts, and management figures if the accounts are dated.
• A number and a reason — how much, what for, and when you need it.
• A named decision-maker who can answer questions on the company's finances.

A specific requirement, such as stock for a confirmed order, gives a provider more useful information than a broad description such as "growth".

Timelines vary by provider, product, due diligence and the documents available. Secured and asset-backed facilities may also require valuations or legal work. Ask the provider for its expected process and timing for the specific application.

Submitting an enquiry to Backed does not itself run a credit search. A funding partner may carry out its own checks later and should explain the type of search and seek any consent required as part of its process.

Much of the market above is aimed at incorporated businesses. Sole traders and ordinary partnerships have options, but they sit outside what we handle — our check is for UK limited companies and LLPs registered at Companies House.

Tell us what your company needs to fund. Backed may introduce it to one or more funding partners whose criteria may fit. Backed is an independent introducer, not a lender, and providers determine eligibility, approval, pricing and terms.

Submit a funding enquiry

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• How business loans work in the UK
• Business loan repayment calculator
• Business loans with bad credit
• Invoice finance explained
• Merchant cash advance explained
• Asset finance and equipment leasing