How to get a business loan in the UK

At Christie Finance, we help business owners across the UK access the right funding — from first-time entrepreneurs to established operators in hospitality, healthcare, retail, and beyond.

What is a business loan?

A business loan is a form of finance that provides a lump sum to help fund your company’s needs. You repay the loan, plus interest, over an agreed term. Loans can be secured (backed by assets such as property or equipment) or unsecured (based on your creditworthiness and business performance).

Choosing the right loan depends on what you’re funding, your business structure, and how quickly you need access to capital.

Step-by-step guide: How to get a business loan in the UK

Getting approved for a business loan requires careful preparation, comparison, and understanding of what lenders look for. Follow these key steps to improve your chances of success.

Step 1: Determine why you need a business loan

Before applying, be clear about your funding goals. Lenders will want to know how you intend to use the money and how it will benefit your business. Common reasons include:

• Purchasing equipment or vehicles
• Expanding or refurbishing premises
• Buying another business or franchise
• Managing cash flow or seasonal fluctuations
• Hiring staff or funding marketing campaigns

Having a clear purpose strengthens your case and helps you identify the most suitable loan product.

Step 2: Understand your funding options

There’s no one-size-fits-all solution. The UK business finance market offers several options depending on your needs:

1. Unsecured Business Loans

An unsecured business loan doesn’t require property or assets as security. It’s ideal for established businesses with a strong financial track record that need quick access to working capital.

2. Asset Finance

If you’re purchasing machinery, vehicles, or equipment, asset finance allows you to spread the cost while keeping cash free for other operations.

3. Commercial Mortgages

A commercial mortgage can be used to buy or refinance business premises. It’s typically secured against the property and offers longer repayment terms.

4. Revolving Credit Facilities

A revolving credit facility gives flexible access to funds when needed — similar to an overdraft, but often with lower rates and higher limits.

5. Government-Backed Loan Schemes

Under initiatives such as the Growth Guarantee Scheme Loan, eligible SMEs can access loans with partial government backing to encourage lender confidence.

6. Merchant Cash Advances

For businesses with strong card sales, a merchant cash advance allows repayments to flex with your turnover — ideal for retail and hospitality operators.

Discover how a merchant cash advance works as an alternative to a traditional business loan in our detailed merchant cash advance guide.

Step 3: Check if your eligible

Eligibility criteria vary between lenders, but most consider:

• Trading history: Many lenders prefer at least 12–24 months of trading.
• Credit history: Both business and personal credit profiles are assessed.
• Affordability: You’ll need to show consistent revenue and cash flow to support repayments.
• Purpose and security: If the loan is secured, lenders will value your assets.

If you’re a start-up, alternative funding such as asset finance or government-backed schemes may be more accessible.

Step 4: Prepare your application

Preparation is key to securing approval. Have the following ready:

• Up-to-date management accounts and financial statements
• Business plan outlining growth strategy and loan purpose
• Bank statements (usually last 6–12 months)
• Proof of identity and business ownership
• Details of assets or collateral (for secured loans)

The more evidence you provide of stability and repayment ability, the stronger your application will be.

Step 5: Compare lenders and terms

Don’t just look at the interest rate — compare:

• Loan term and total repayment cost
• Fixed vs variable rates
• Early repayment charges
• Flexibility for future borrowing

Explore typical business loan rates in today's market so you can sense check quotes as you work through your application.

Working with an independent finance broker like Christie Finance ensures you access the most competitive options from a wide panel of lenders, not just high-street banks.

Step 6: Apply and receive your funds

Once approved, funds can often be released within days, depending on the type of loan and lender. Be sure to review the loan agreement carefully, understanding all fees, repayment terms, and obligations before signing.

Alternative ways to finance a business purchase or growth

If you’re exploring funding for expansion or acquisition, consider our specialist services:

• Commercial Bridging Finance – short-term finance to bridge gaps between purchases and sales.
• Development Loan Calculator – estimate borrowing capacity for property-based projects.

Each option can complement your business loan strategy depending on your goals and timescales.

Why work with Christie Finance?

For over 45 years, Christie Finance has helped thousands of UK businesses secure the funding they need. We understand every business is unique, so our independent advisers take time to tailor finance solutions to your goals — guiding you from first enquiry through to completion.

Whether you’re applying for your first loan or refinancing existing debt, we’ll help you make informed, confident decisions

Ready to get started?

If you’re exploring how to get a business loan in the UK, let our experts guide you through your options.

Contact our team today to discuss your funding needs and find the right solution for your business.