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Providing you with a business loan for new small business ideas

The right new business loans for your needs

New business loans FAQs

If you are just starting out on your journey as an entrepreneur, you’re probably full of ideas and ambitions for your business. We do provide new business loans, as long as you have at least four months trading history behind you.

Working with business owners at the very beginning of their business lifecycle is exciting. We love supporting our partners’ dreams and aspirations and we try to help them make these a reality. If you have several months of really strong sales and fantastic potential for growth, why not talk to us about our new small business loans?

Several years ago, trying to get a new business loan from a bank was a non-starter. Unless you had years of trading behind you and clear profits, banks would rarely consider lending to small businesses. Then along came online direct lenders like us, who pride ourselves in offering a more human-touch approach to small business loans.

Instead of looking at accounts and financial performance alone, we also look at your business’ potential and your business plan. When applying for new business loans, we ask that you show us a business plan to help us understand where your business is going over the coming months and years and where you can expect your finances to be.

This, alongside financial and credit information, enables our experienced lending team to make decisions. We want to offer new business loans UK entrepreneurs can use to grow their businesses and we understand this can be risky for both parties. This is why we always treat our customers with respect and understanding. We know how challenging running a business is but we also know how great financing can help promising ideas become great businesses.

We offer two main new business loans to our customers. You may be considered for either of these loan types, but this will depend on your trading history and business finances to date.

Variable rate new business loans

These are our shorter-term loans that our consumers use to meet immediate costs. If it’s flexible working capital you need, this could be the right kind of new business loan for you. Here are the terms:

Borrow between £5,000 and £100,000

Repay over 1-6 months

Rates start at just 2.5%

Fixed rate new business loans

These are longer-term loans, repayable over a slightly longer period of time, giving you more time. Interest rates are also fixed for the entire period, which means you have the peace of mind of knowing exactly what your loan repayments will be each month. If these new business loans sound right for you, here are the terms:

Borrow between £5,000 and £100,000

Repay over 1-24 months

Rates start at just 2.5%

The actual amount you can borrow through one of our new small business loans, and the length of your loan terms, will be arranged and agreed when you apply. This will be based on your financial situation and your own credit file, as well as that of your business.

We require our new business loan applicants to be able to show us their business finances for at least four months. This is to enable our underwriters to gain an impression of how the business is doing in terms of sales and performance. If our team of experts see some potential in your business, we may ask to see your business plan and other documents and you may have your application approved.

Yes. You can apply quickly online or over the telephone. We will be on hand to talk you through your new business loan options with you and discuss your projections for the future of your business.

As well as four months trading accounts, we will ask to see your business bank statement and ID to allow us to look at your credit records.

Providing you are approved for a new business loan, you could have the funding in your account on the same day. We usually make our funding decisions within four hours of receiving applications, although this can sometimes increase if we need more documentation from you, for example.

Unless you have been trading for at least four months, you may have to look for other sources of funding. Alternatives could include invoice financing, bank overdrafts, crowdfunding or friends and family.

There is always a level of risk involved when taking out a loan and a new small business loan is no different. We make sure that our borrowers can afford the repayments we agree before they sign up to one of our new business loans. We also encourage any of our customers who are struggling to make payments to talk to us to try to work out a new payment plan that works for them.

If you miss payments, you do risk damage to your credit rating, which could make it difficult to secure business funding in the future. However, because we offer unsecured new business loans only, your home or business premises are not at risk.