Business loans for UK companies

A business loan is capital borrowed for a commercial purpose and repaid over an agreed period with interest and any applicable charges. The agreement sets the repayment schedule, term, security, fees and consequences of missed payments.

A secured loan uses property or another agreed asset as security. An unsecured loan does not pledge a specified asset in the same way, but the provider may still request a personal guarantee. Secured assets can be at risk following default.

Depending on provider criteria, purposes may include working capital, stock, contract mobilisation, business tax liabilities, repairs, expansion, premises, acquisition or refinancing. The purpose should be specific, lawful and commercially credible.

NBS Finance handles business-loan enquiries from £5,000 to £1 million. The amount a provider may offer depends on the purpose, turnover, affordability, profitability, trading history, credit profile, existing commitments and available security. The amount requested should connect to a clear use and realistic repayment plan; an enquiry does not guarantee approval or the full amount.

Common unsecured and short-term routes available to NBS Finance run from about 3 months to 5 years. Qualifying property-backed secured finance can extend substantially longer, in some cases up to 30 years. The quote must confirm the exact term. A longer term can reduce each repayment but usually increases the total interest paid.

The rate is driven by risk and structure: amount, term, repayment frequency, trading performance, affordability, business and director credit history, security and the provider's criteria. Total cost can also include arrangement, valuation, legal, documentation and early-settlement charges. Compare the annual rate, every fee, total repayable and security—not only the monthly payment.

Start with the legal business name, £5,000–£1 million amount required, exact purpose, deadline, trading history and turnover. Prepare the latest 3 months of business bank statements, with 6 months preferred, plus recent accounts or management figures, existing borrowing, identification and purpose evidence such as a tax bill, contract, quotation or supplier invoice.

There is no single reliable completion time. Timing depends on the provider, proposal, information supplied, underwriting and whether valuation, legal work or additional security is required. Do not commit the business to a purchase or payment date until written terms and completion are confirmed.

Not always, but personal guarantees are common for unsecured limited-company borrowing. A guarantee is legally binding and can make the guarantor personally liable if the business defaults. Before signing, obtain the exact guaranteed amount, facilities covered, expiry or release terms and enforcement provisions, and take independent legal advice.

It can make an enquiry, but previous declines, arrears, defaults or other credit issues may reduce the available options or change the price, term and security. Different providers use different criteria; accurate disclosure helps avoid wasted applications. Approval is never guaranteed.

Yes, where the agreement permits early settlement or refinancing. The existing provider calculates a written settlement figure, which can include outstanding capital, interest, notice requirements and early-repayment charges. Compare that figure and every new fee with the remaining cost of the existing agreement before replacing it.

If the purpose is a specific vehicle or machine, asset finance may fit the purchase more closely. If the gap is caused by eligible unpaid B2B invoices, invoice finance may be more relevant. The right starting route depends on the underlying need, not the most familiar product name.