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Key features of a small business loan

• Suitability: Businesses looking to raise between £10,000 - £750,000 for a UK SME
• Purpose: Any purpose, including working capital, debt consolidation, growth, stock and more.
• Amount: Loans range from £10k to £750k, depending on the lender.
• Term: Between 6 months and 6 years.
• Cost: Interest rates start from 6.9% per annum
• Security: Our lenders may ask for a personal guarantee

How to use small business finance to grow your business

If your small business wants to scale and improve operations, the right finance could be the answer.

A small business loan could provide the financial support you need to invest in growth without straining cash flow. Here are some ways a small business loan can help your business grow:

Grow your team

Expanding your workforce can be one of the best ways to scale your business, improve productivity, and increase your services.

Whether you need to hire sales professionals, skilled technicians, or customer service representatives, a small business loan can provide the funding needed to cover recruitment costs, salaries, and training.

Investing in the right people allows you to expand operations, enhance customer experience, and drive long-term growth.

Manage day-to-day expenses

Cash flow fluctuations can be challenging, especially for small businesses that experience seasonal demand or long payment cycles.

A small business loan can act as a financial buffer, helping you cover essential expenses such as rent, payroll, and supplier payments during slower periods.

This ensures your business remains operational and can take advantage of opportunities without financial constraints.

Expand premises or open a new location

If your business has outgrown its current space or you’re looking to move into your first office, securing small business financing can help fund office expansion, renovations, or even the opening of new locations.

A well-located and well-equipped workspace can help attract more customers, grow your workforce, and create a stronger brand presence in your industry.

Upgrade equipment and invest in technology

Keeping up with industry advancements is crucial for business growth and staying competitive. A small business loan can help you invest in new equipment, upgrade outdated technology, or implement software solutions to improve efficiency.

Whether purchasing machinery, upgrading IT infrastructure, or adopting automation tools, access to funding ensures your business stays competitive and can operate at peak efficiency.

Financing options for your small business loan

The right funding is essential for small businesses looking to grow, manage cash flow, or invest in new opportunities.  

Small businesses rely on flexible funding solutions to take advantage of new opportunities, scale quickly and stay competitive in their industry.

Understanding your borrowing options can help you choose the best solution for your business and future plans.

Unsecured business loans

Unsecured business loans can provide fast access to funding without using collateral. This makes them ideal for small businesses that don’t have significant assets or who don’t want to tie up their property or equipment as security.

These loans can be used for almost any business purpose, from purchasing stock to covering short-term operational costs.

Some lenders may ask for a personal guarantee. This means the business owners could be personally liable for repayments if the company defaults.

Secured business loans

Secured business loans require collateral, like property, equipment, or other valuable business assets.

This can allow you to borrow larger amounts at lower interest rates, making them ideal for small companies looking to make significant investments or secure long-term growth funding.

Because the lender has security over the asset, the risk is lower, but failure to keep up with repayments could result in the loss of the asset.

Merchant cash advance

A merchant cash advance offers a flexible way to borrow money based on your business’s future card sales.

Instead of fixed monthly repayments, you repay a percentage of your daily card transactions, making it useful if your business has fluctuating incomes.

This type of financing is beneficial for retail, hospitality, and service-based businesses that process regular card payments.

Repayments adjust in line with business performance, so you will repay less during quieter periods, helping to ease cash flow pressure.

Invoice finance

Invoice finance can allow your business to release cash tied up in unpaid invoices, meaning you won’t have to wait 30, 60, or even 90 days for customers to pay.

Lenders can advance up to 90% of the invoice value upfront, with the remaining balance received once the client settles the invoice, minus lender fees.

Invoice finance can help your business maintain a healthy cash flow, especially if your industry has long payment cycles.

Asset finance

Asset finance could help your business buy equipment, machinery, or vehicles without making a large upfront investment. Instead, you spread the cost over time, maintaining cash flow while getting access to the assets you need.

The equipment itself acts as security for the loan, often resulting in lower interest rates compared to unsecured borrowing.

Asset finance is a good option if your business wants to expand or upgrade without impacting day-to-day working capital.

Revolving credit facility

Like a business overdraft, a revolving credit facility gives your business ongoing access to funds. You can access funds when you need to, repay, and borrow again within an agreed credit limit.

Interest is only charged on the amount you use, making it a flexible and cost-effective way to manage your finances, cover unexpected expenses, or support seasonal fluctuations in cash flow.