Everything you need to know about a business loan in the UK

Starting a business requires more than just strategy. Most of the time businessmen are looking for quick cash loans to start their setups. However, there are a few things that every business owner must know while living in the United Kingdom.

It is important to know a few things if you are just starting your business or planning to start one, but you need to get a loan to support it. Getting a commercial loan is different than getting a residential loan and we are here to explain whether or not you qualify for that commercial loan.

What is a business loan?

A business loan is just like any other loan but it has a different set of terms and conditions. Businesses take out loans to grow, but when it comes to repaying the loans, they agree to a certain interest rate. But even as a business owner, not every business is capable of applying for a business loan.

Types of business loans

Before moving on to the qualification part, let us first focus on the different types of business loans available to the UK business owners. There are many types of loans available to the business owners but a few notable types are:


  • Short-term business loans
  • Long-term business loans
  • Secure business loans
  • Unsecured business loans

Short-term business loans

A short-term business loan, just as its name suggests, provides the business owner with a quick loan. They do not take months and provide the owners with immediate financing options. Additionally, the repayment of loan also lies between 3 months to a year.

Long-term business loans

It is possible to obtain large amounts of cash upfront with a long-term business loan. An asset such as a car or a house can be used as collateral for the loan. The repayment is done in monthly installments with interest over an agreed period of time.

Secure business loans

A secure business loan is not limited in terms of money or duration, but rather it is backed by a secure asset. It can also be in the form of a guarantee from a third party. It ranges from property to stocks and shares etc

Unsecured business loans

This type of loan does not require any assets for borrowing money. In this type of loan, the only important factor is the personal guarantee by which you promise to repay the loan should the business not be able to.
These types of loans are higher in interest rate than secure business loans

There are a few things to consider before applying for a business loan in the UK and these are:

  • You must be above 18
  • You must be a United Kingdom resident
  • Your planning for the UK-based business must be fully trading for less than 36 months

What if you have declined a loan?

There is a possibility that you might be declined the loan. However, if that happens all you need to do is go to the bank. You can ask for the bank referral scheme to look for another finance platform.

Which online platform is the best?

Business owners in the UK can find many online lending platforms to help them with their loans. However, the one that we have tested and know for sure is really helpful is Loans Desire. The professional teams at their company walk you through every detail of the loan process. From the repayment time to the interest rate, you will know about everything in detail.
Contact them for more information.