Commercial business loans in the UK

• Commercial term loan — a lump sum repaid over a fixed period, secured or unsecured, used for growth, equipment or acquisitions.
• Revolving credit facility — an agreed limit drawn and repaid as needed, priced only on what is used.
• Invoice finance — advances released against unpaid invoices, so funding scales with the sales ledger.
• Asset finance — funds vehicles, plant and machinery over their working life, secured on the asset itself.
• Merchant cash advance — repaid as a share of card takings, common in retail and hospitality.
• Commercial mortgage or bridging — property-backed lending for premises, refurbishment or a new site.

• Trading history and filed accounts — most commercial lenders prefer at least 12 to 24 months.
• Turnover and bank conduct over recent months, including returned payments.
• Existing debt, outstanding facilities and charges registered at Companies House.
• The purpose of the funds and how the borrowing repays itself.
• Security available, and whether directors will give a personal guarantee.

Two offers at the same headline rate can cost very different amounts once fees, term and repayment structure are included. Convert every offer to total repayable in pounds, then check the cash-flow shape: a facility that is cheaper overall but heavier month to month can still be the wrong choice. Our business loan calculator compares capital-and-interest against interest-only side by side.

Commercial lending is fragmented. Different providers specialise by sector, facility size, security type and trading age, and criteria change regularly. Backed is an independent introducer: we take one funding request and pass it to a funding partner or broker, rather than lending ourselves.

What is a commercial business loan?

A commercial business loan is borrowing taken by a company rather than an individual, used for trading purposes such as equipment, stock, premises, contracts or working capital. It can be secured on assets or unsecured with a director's personal guarantee.

How much can a UK limited company borrow?

Amounts commonly run from around £10,000 on short unsecured facilities to several million on secured or asset-backed lending. Affordability is usually assessed against turnover, existing commitments and the security available rather than a fixed multiple.

What is the difference between business lending and a business loan?

Business lending is the broader category: term loans, revolving credit, invoice finance, asset finance and merchant cash advances all sit inside it. A business loan is one product within that group, normally a lump sum repaid over a fixed term.

Do commercial lenders require security?

Not always. Secured lending is priced lower and usually allows larger amounts and longer terms. Unsecured facilities are quicker to arrange but almost always come with a personal guarantee from one or more directors.

Backed may introduce your company to one or more funding partners whose criteria may fit. Providers determine eligibility, approval, pricing and terms.

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• How to get a business loan in the UK — What lenders look at, the funding types available, and how to apply.
• How business loans work in the UK — Terms, rates, repayments and personal guarantees explained.
• Business loan calculator UK — Monthly payments, interest-only comparison and total cost before you apply.
• Business loans with bad credit — What is still fundable when the credit file is not clean.
• Invoice finance explained — Turning unpaid invoices into working capital.
• Merchant cash advance explained — Repaying from card takings, and when it makes sense.