Business Loans (2)
06 May

6 Outstanding Tips for Getting the Best Business Loans in the UK

Getting the best business loans in the UK doesn’t have to be hard, even if you’re still very new to running your own business or don’t have enough credit history to qualify for the most advantageous loans. 

You just need to know which avenues to go down and what questions to ask along the way. This guide will show you how to navigate through each part of the process, from researching your options to submitting your application and following up with lenders.

1) Decide what type of loan you want

One of your first steps should be to decide what type of a UK business loan you want: unsecured or secured. This will help you determine where to go and whom to speak with. Unsecured loans tend to carry lower interest rates, but they also carry higher risk because they’re not backed by collateral. 

Secured loans are typically tied to an asset that acts as collateral; if you fail to make payments on a secured loan, your lender can take possession of that asset. If you need money quickly, an unsecured loan might be a better option—but if there’s any chance that you might default on payments, it’s probably best to pursue a secured loan instead.

2) Get your finances ready

Before even applying, it’s important to have your personal finances ready and to know what you can afford. Only then will you be able to effectively evaluate your options, which will depend on how much money you need, how long you’ll need it and whether you plan on paying back with interest or if you prefer a longer-term payback period. 

For example, some business loans UK are available for up to 20 years while others might only last five years. You should also consider any fees associated with each loan as well as any possible tax breaks that could help offset those costs over time. 

It’s also worth noting that business owners who don’t already own their own homes may not qualify for certain types of loans—for example, many mortgages require that borrowers have at least 20 percent equity in their homes before they can take out a loan against it.

3) Consider all options

When you need to get a business loan, there are several options available to you. The most obvious route is to visit your local bank and apply in person; however, that might not be your best bet. If a traditional bank won’t give you what you need, don’t lose hope! 

Many other financial institutions will offer loans at competitive rates—you just have to know where to look. For example, peer-to-peer lending sites like Finance Hub can help you find an individual who’s willing to lend you money with a lower interest rate than a bank would charge. 

It’s also worth looking into funding websites like Kickstarter or GoFundMe; if people believe in your idea enough to fund it ahead of time, they may also be willing to lend you money once it becomes profitable.

4) Evaluate your business plan

To get started on your business plan, list out all of your big-picture financial goals: You should have at least three—how much money you want to make, how much money you want to spend, and how much money you need to start your business. Then write down a few milestones that will help you achieve each goal. 

For example, if one of your goals is to earn $100,000 a year by year five, you might set up a milestone for $50,000 in year two and another for $60,000 in year four. These milestones are important because they’ll give you concrete things to work toward, which can help keep you motivated as you go through some tough times (which we’re sure there will be). 

Finally, think about what kind of resources it would take to reach these goals. Are there certain skills or tools that would be helpful? Is it time for investment? Brainstorming these questions now can save you from some serious heartache later on.

5) Get advice from other businesses

One of the best things you can do to learn how to start a business is simply talking to other business owners. Ask them how they got started, what their secrets are, and what you can expect from your new venture. Learn from others’ successes and failures so that you don’t make those same mistakes as you get going. 

Plus, networking with other businesses allows you to build relationships that could come in handy down the road. After all, a lot of businesses rely on referrals when it comes to bringing in new customers—and knowing someone who already has customers could be invaluable when it comes time to grow your customer base.

6) Create backup plans

It’s good to plan a course of action, but it’s also important to create backup plans. This is especially true when you are working towards your first business loan. If your UK business loan doesn’t go through, what will you do? 

There might be more red tape than you initially thought and not everyone gets approved on their first try. Make sure that if one avenue doesn’t work out, there are other avenues available to you. 

You can always approach investors or seek additional financing from another lender if needed. No matter how prepared you think you are, things happen – so have backup plans in place!


With so many UK business loans out there, it can be hard to know which one is right for you. However, if you take the time to understand your needs and explore all of your options, you’ll be able to find a loan that meets them. Visit Finance Hub (A hub of all business loans in the UK) to get the business loan of your choice.

And remember: A good business plan is key when applying for loans—it helps demonstrate that you are a serious entrepreneur and ensures lenders have all of their questions answered before they’re willing to dole out their money. So, don’t forget to write one!