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Can you get a business loan for £100k?
Many UK lenders offer business loans of £100,000, which is a common borrowing level for small businesses looking to fund growth, support cash flow, or cover larger one-off costs.
A £100k loan is generally considered mid-sized finance, meaning it’s accessible to a wide range of SMEs, not just larger companies.
This amount can be borrowed through various types of business finance, and the right option will depend on your circumstances and the way your business operates.
What type of business loans can you use to borrow £100k?
Several forms of business finance can support a £100k funding requirement, including:
- Unsecured business loan: A lump-sum loan that doesn’t require property or asset security. Approval is typically based on trading history, profitability and credit profile. Many businesses can access a £100k unsecured loan, provided they have stable revenue and can demonstrate affordability.
- Secured business loan: A loan backed by residential or commercial property. Because the risk is lower for the lender, secured loans often make it easier to borrow £100k or more, with longer terms and potentially lower rates. Your business will need a suitable UK property to be eligible.
- Revolving credit facility: A flexible credit line that you can access as needed, up to a set limit. Some businesses may qualify for a facility of £100k, depending on turnover and financial position. You only pay interest on the funds you use, making it useful for ongoing or unpredictable costs.
- Asset finance: Funding used to buy equipment, vehicles or machinery worth £100k, with the asset itself acting as security for the loan. This option spreads the cost over time and can be ideal if you’re investing in high-value assets without paying up front.
- Merchant cash advance: A flexible funding option for businesses taking card payments. You can typically borrow up to 2x of your average monthly card takings. This means you could access £100k if your monthly card revenue is strong enough (for example, £50k–£100k per month).
- Growth Guarantee Scheme (GGS): The GGS is a government backed scheme designed to help small UK businesses access finance. It’s available through accredited lenders, who are backed by a 70% guarantee, which reduces their risk.
What can you use a £100k business loan for?
A £100k business loan can support a range of goals, from day-to-day cash flow needs to longer-term investment projects.
This level of funding is often used by small businesses to manage day-to-day costs, advance growth plans, or cover high, one-off expenses that are difficult to cover through regular trading.
Lenders are generally open to a wide range of commercial uses as long as the funds support business performance.
Common ways businesses use a £100k loan include:
- Cash flow support
- Purchasing equipment or vehicles
- Hiring new staff
- Expanding into new premises
- Increasing stock levels
- Marketing and growth campaigns
- Refurbishments and upgrades
- Investing in technology or software
A £100k loan offers flexibility, so the best use will depend on your priorities and how quickly you need the funds.
How to apply for a £100k business loan
To apply for a UK business loan of £100k, here are the steps you need to follow:
- Complete your application online by providing your business details, turnover, and how much you want to borrow
- Submit your paperwork, including bank statements from the last 3–6 months and your latest company accounts
- Get a decision within 24 hours, with funds often sent within 48 hours
- Receive the funds in your business bank account
When you apply for a £100k business with Aurora Capital, we can provide you with a decision in minutes with no impact on your credit score.
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How the process works
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Once you have fully submitted your proposal, one of our funding specialists will discuss the available options and help get you funded.
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Frequently asked questions
How much does a £100k business loan cost?
The overall cost of a business loan depends on factors like:
- The loan’s annual percentage rate (APR)
- Any fees and charges
- Your business credit score
- The term of the loan
Interest rates and fees differ between secured and unsecured loans, and lenders base terms on things like your trading history, credit profile, and affordability.
The length of your loan term also influences the total amount you pay. A longer term may mean lower monthly repayments, but it will also mean you’ll pay more interest overall.
To help you understand how much a £100k loan could cost, use our business loan calculator.
Can a start-up borrow £100k?
Most lenders prefer businesses to have at least several months of trading history before offering a £100k loan, so it can be more challenging to borrow as a start-up.
However, some early-stage businesses may still be able to access £100k through secured loans, or other funding options tied to assets or contracts. Start-ups often explore alternative finance or smaller loans before scaling to £100k.
How long can I borrow £100k for?
Repayment terms for a £100k business loan vary depending on the type of finance and your business’s financial profile.
Unsecured loans can range from 1 month to 6 years, while secured loans can offer longer terms of up to 15 years, as the lender has additional protection.
The right term for your business will depend on affordability, cash flow and how quickly you expect the funding to deliver a return.
Can I borrow £100k if I have bad credit?
It may be possible, but your options will be more limited. If your business or personal credit score is low, lenders may still consider a £100k loan if you can provide security or offer a personal guarantee.
Bad credit shouldn’t automatically prevent you from borrowing £100k, but additional checks, security or guarantees may be required.
How fast can I get a £100k business loan?
It’s possible to receive a £100k loan quickly, especially through an unsecured loan, where approvals can take as little as 24 to 48 hours.
The speed will depend on how prepared you are, the strength of your business’s finances, and how quickly you can provide the required documents. Secured loans may take longer due to the need for valuations and legal checks.
Can I get an unsecured business loan for £100k?
Yes, many businesses can get an unsecured business loan of £100,000 or more, provided they have a strong trading history, stable revenue and a solid credit profile.
Lenders assess your business’s finances and credit score to decide whether you can afford a £100k loan without any tangible security.
What can you use a £100k business loan for?
A £100k business loan can support a range of goals, from day-to-day cash flow needs to longer-term investment projects.
This level of funding is often used by small businesses to manage day-to-day costs, advance growth plans, or cover high, one-off expenses that are difficult to cover through regular trading.
Lenders are generally open to a wide range of commercial uses as long as the funds support business performance.
Common ways businesses use a £100k loan include:
- Cash flow support
- Purchasing equipment or vehicles
- Hiring new staff
- Expanding into new premises
- Increasing stock levels
- Marketing and growth campaigns
- Refurbishments and upgrades
- Investing in technology or software
A £100k loan offers flexibility, so the best use will depend on your priorities and how quickly you need the funds.
Is your business eligible for a £100k business loan?
Before approving your loan application, the lender will assess your financial situation to determine how much your business can borrow.
They need to be confident that you can repay the loan. To do this, they check things like:
- Your borrowing history
- Your business credit report
- Your current debts
- Your revenue
This will help them determine how reliable your business is and your history of repaying credit. There are also other eligibility criteria that most lenders have, which will generally include:
- You must be over 18 years old
- Your business has been trading for at least six months
- Your business has a turnover of more than £10k per month
- Your business is trading and registered in the UK
- Your business has a UK business bank account
Don’t see your question? Send us a message or call us on 01371870815 to speak to one of our funding specialists quickly.
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