Business Loans
Are you looking for a straightforward business loan (sometimes called a commercial loan)? We can help you find what you need without having to worry that you might not meet the criteria. Let us guide you through the process.
A commercial loan is for a fixed sum repaid over a fixed period (called the "term" of the loan).
We have specialist partners that can help you access the best interest rates, from lenders that will take a flexible approach and be sympathetic to difficult circumstances.
For help, call Sean on 03330 113622.
How Much Can You Borrow?
You may want to know how much you can borrow using a business loan. We will be able to tell you the maximum amount that you can borrow based on some simple details about your business.
Below we have set out the amounts you may be able to raise are as follows:
Unsecured Loans
- Up to £200,000.
- A guarantee from your company director(s) may be required.
Secured Loans
- Between £150,000 and £1,000,000.
- A charge over all company assets or property (typically a second or subsequent charge) may be taken.
Property loans, for property development and investment, up to £10 million.
What Is The Term Of A Commercial Loan?
This is the normal term of a commercial loan, the period over which the loan is repaid. This can range between 3 months and 10 years.
What Can The Money Be Used For?
You can use the money for almost any purpose. These are a few examples of possible uses:
- Paying tax or VAT.
- Financing management buyouts (MBO), buy-ins, acquisitions and business purchases.
- Purchasing stock or equipment.
- Improving your working capital and cash flow position.
- Expanding your business.
- Refurbishing property.
- Bridging loans for short periods.
How Do Business Loans Work?
A business loan tends to be a straightforward product that is widely understood. It works as follows:
- The lender agrees to lend you a fixed sum of money (the principal sum).
- An interest rate is set for the loan as is the term over which the loan (and the interest) and any other charges specified.
- The lender sends you the principal sum (normally transferred to your bank account).
- You then make regular repayments according to an agreed payment schedule (often called periodic payments or instalments).
- At the end of the term, your payments will have cleared both the principal sum, the interest and any charges.
Cash Flow Loans
If you already have an invoice finance facility (or are seeking one) you may be eligible for a cash flow loan to top up the amount of funding that you receive. This is a fixed sum, in addition to your normal factoring or invoice discounting funding levels, with the fixed sum repaid over a fixed period, called the term. Several of our invoice finance partners offer cash flow loans.
Unsecured Business Loans – Flexible Funding Without Security
For UK businesses seeking finance without pledging assets, an unsecured business loan could be the ideal solution. Unlike secured loans, which require property, equipment, or invoices as collateral, unsecured business loans are based on your company’s financial standing and creditworthiness.
What Is an Unsecured Business Loan?
An unsecured business loan is a type of commercial finance where lenders provide funding without requiring security against business assets. Instead, approval is typically based on:
- Business credit score
- Trading history and financial performance
- Turnover and profitability
- Personal guarantees (in some cases)
These loans are commonly used for cash flow management, expansion, hiring staff, or purchasing stock when businesses need fast access to funds.
Who Can Apply for an Unsecured Business Loan?
Unsecured business loans are suitable for:
- Startups & SMEs – Businesses without large assets to secure funding
- Growing Companies – Those needing working capital for expansion
- Service-Based Businesses – Firms that don’t have physical assets for security
While unsecured business loans are more flexible, lenders often charge higher interest rates to offset their risk. Loan amounts and terms may vary based on the lender’s assessment. Business lending unsecured by assets may give additional peace of mind as those assets are not at risk should you fail to repay unsecured lending.
Secured & Unsecured Business Loans vs. Invoice Finance – Which Is Better?
Many businesses compare secured and unsecured loans with invoice finance, a type of funding that releases cash tied up in unpaid invoices. Here’s how they differ:
| Feature | Unsecured Business Loan | Secured Business Loan | Invoice Finance |
| Security Required | ❌ No | ✅ Yes (defined assets) | ✅ Yes (invoices) |
| Approval Based On | Credit history & financials | Credit history, financials & assets | Invoice values & debtor quality |
| Repayment | Fixed monthly repayments | Fixed monthly repayments | Repaid when invoices settled |
| Speed of Funding | Typically few days to a few weeks | Typically days to weeks | Can be very fast (our record is 7 hours) |
| Best For | Exceptional expenses Smaller value loans Stronger financials |
Larger value loans Weaker financials |
Regular cash flow Poor financials or bad credit history Lack of assets besides invoices |
If your business has assets a secured loan might release more capital, if you have strong cash flow but no physical assets, an unsecured loan may be the right choice. However, if you issue invoices and want flexible funding without long-term debt, invoice finance could be more suitable.
Get Help Finding the Right Business Finance Solution
At FundInvoice, we help UK businesses find the right funding solutions - whether it's an unsecured business loan, secured loan, invoice finance, or alternative funding.
📞 Get a free, no-obligation quote today - call us at 03330 113622 or request a quote online.
Other Information
Further information about loans:
- Blog post - How To Get A Business Loan
- Article - How To Work Out How Much Finance You Need
- Article - How Business Loans Compare Between Lenders
- Post - Bridging Loan Pricing Example
