How to get a business loan

Gross lending reached nearly £60B in the UK in 2023, with half of that funding going to smaller businesses. If you’re wondering how to find and apply for some of that funding, read on. 

What is a business loan?

A business loan is a sum of money extended to you for business purposes. This could include a cash flow injection to keep you ahead of upcoming expenses, a lump sum to facilitate the purchase of a new buy-to-let property, or some funding to power an exciting marketing campaign. 

Business loans can come in many different forms, but as a general rule of thumb, you’ll be expected to repay the loan plus interest and possibly fees on a recurring basis, usually these instalments will come out on a monthly basis. There are short-term business loans, which can provide funding for anywhere from 1 month to 24 months, and long-term loans, which can last up to 25 years, sometimes more. 

How to get a business loan 

The type of business loan you can get could depend on your circumstances, profitability, cash flow, and the lender. Processes vary from lender to lender, but here are some things you might like to do to get a business loan. 

Find a suitable lender and loan 

Start by considering your needs as a business. What do you need the loan for, how long do you need it for, and how much can you afford to repay? Once you have these things written down, it can make it easier to find a lender that will help you achieve your goals. 

Example: Let’s say you’re running a start up. You’re in your first year of business and you need around £10,000 to help you purchase stock, which you intend to sell within the next few months. You’d like to repay the loan within the next 2 years, spread out across monthly instalments. With this information, an expert in the field could tell you that a government backed start up loan (which is a type of personal loan) could be the most suitable type of business loan for your needs.  

Many businesses choose to use a broker like Funding Options by Tide to support them in their search for funding. At Funding Options by Tide, we’re able to gather quotes from over 120 lenders in our network, making us faster and more cost efficient than gathering quotes lender by lender. We’ve helped over 18,000 businesses get more than £800 million in funding. If you’d like to be next, start by getting a quote. 

Get ready to apply 

Once you’ve chosen your lender and loan, ask them what you’ll need to go ahead with an application. Some lenders only require company information and bank details to start an application, whereas others might request cash flow projections, an exit plan (this details how you plan to repay the loan, this is more typical with something like a bridging loan or auction finance), and a business plan. Gather together these documents to ensure the best chance your application will be effective. 

Submit your application

Depending on your lender, you may be able to submit an application digitally online, over the phone, or in person at your local branch. Applications can take anywhere from a few minutes to a few hours, and you could be waiting a few weeks for a response, particularly if you are applying for a larger loan. A broker like Funding Options by Tide could help you with your application. 

Stick to the repayment schedule 

If you’re approved, ensure you understand the repayment schedule perfectly. You’ll want to find out which day your payments will be due, whether you need to send the funds in or if the funds will be taken automatically, and what will happen if you’re ever late with a payment. 

Find a business loan with Funding Options by Tide

Are you looking for a business loan? If so, click the link below and submit your information and we’ll let you know if you’re eligible for up to £20 million in funding. We help connect eligible business owners and sole traders to funding solutions designed to suit their unique needs

Whether you’re interested in using a limited company to get a buy-to-let mortgage or taking out a fleet’s worth of Range Rover business leases, we work hard to simplify the loan application process. We provide expert support throughout and can even tell you whether or not you’re eligible without impacting your credit score, although a full application would have an impact on your score. 

Find a business loan.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.