Business loans for UK businesses
A business loan is money your business borrows now. It pays the money back each month, with interest.
- We are a broker, not a lender.
- We can ask over 120 lenders for you.
- There is no fee to apply.
- Our FCA number is 1058283. We are members of the NACFB.
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Written by Martin Mackenzie, Sales Director. Checked .
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Business loans. In this video we are going to discuss business loans. A business loan is money borrowed now, and paid back over time. Lenders charge for the money, so more is paid back in all. We arrange loans from 3 months up to 10 years. A loan can pay for stock, or what a big job needs. A big bill you want to spread. Growth, or a gap in the year. There are three main kinds. A term loan is for a bigger plan. A short term loan is for a short need. The third is credit you can dip into when you need it. A business loan can be secured or unsecured. Unsecured means nothing is held against it. A secured loan is held against what you own. The lender can take it if paying stops. It could be a business asset, like a van. Or a building. Lenders also ask things of a director. Our page explains what. A limited company often has the most choice. That is when its director owns their home. A new business with a director who rents may have fewer lenders. So may a sole trader. Fewer is not none. It just means the right lender matters more. One. Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search. Two. A person in our team reads your application. Three. If you go ahead, you sign a consent form. Then we run a soft search on the company. We send your case to the lenders that suit it. Each one does its own credit check. Four. We tell you what the lenders say. If one says yes, we send a quote. Then you sign. Five. The lender pays the money into your business bank account. We are a broker, not a lender. We have a panel of over 120 lenders. Over 30 of those arrange business loans. Lenders often want to see six months of business bank statements. Our page has a free checklist of the rest. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
What is a business loan?
We arrange loans from 3 months up to 10 years. Most term loans last 2 to 5 years.
What can a business loan pay for?
Small business loans can pay for almost anything the business needs. For example:
- stock, or materials for a big job
- a tax or VAT bill you want to spread
- growth, like a new shop or more staff
- the deposit on a vehicle or a machine
- cash to tide you over a gap in the year
What kinds of business loan are there?
We arrange three main kinds. A term loan is for a bigger plan. A short term loan is for a short need. Revolving credit is money you can dip into when you need it.
| Term loan | Short term loan | Revolving credit | |
|---|---|---|---|
| What it is for | A bigger plan, like growth or a large bill | A short need, like a gap in cash | Ups and downs in cash through the year |
| How long | Most last 2 to 5 years | A short time, months not years | A limit you can use again and again |
| How you get it | One lump sum | One lump sum | Take what you need, when you need it |
| How you pay it back | The same amount each month | Each month, over a short time | Pay back what you used, then use it again |
Is a business loan secured or unsecured?
A business loan can be secured or unsecured. Unsecured business loans have nothing held against them. A secured loan has a charge over something. That means the lender can take it if the payments stop. It can be secured on different things. That could be a business asset, like a vehicle or a machine. It could also be property, like a building.
Will I need to give a personal guarantee?
Most likely, yes. Most lenders ask a director for a personal guarantee. That is a promise to pay if the business cannot. The director then has to pay what is owed from their own money. In the end, that could put their home at risk. We tell you before you sign what each lender asks for.
When is a business loan not the right choice?
Buying a vehicle, a machine or equipment? Then asset finance is often the better fit, because the asset backs the finance. Need cash for something else? A business loan. Own assets with no finance on them? Asset refinance can raise cash from them. We arrange all three, so we can set them side by side for you.
Need money to buy property? We do not arrange that, but we can introduce you to an expert we trust. And if a loan would stretch your business too far, we will tell you straight.
How do I get a business loan through a broker?
A broker finds the lender for you. Here is what happens, step by step.
- Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search.
- A person in our team reads your application. We get back to you within a day.
- If you want to go ahead, you sign a consent form. Then we run a light credit check on the company, often known as a soft search. We choose the lenders that suit your case, and send each one a full written case, called a proposal. Each lender then does its own credit check.
- We tell you what the lenders say. If a loan is approved, we send you a quote with the figures. Then we take you through signing the loan documents.
- The lender pays the money into your business bank account.
If one lender says no, do not take it as the last word. Another lender may see your case in a different way.
Who can get a business loan, and how much?
At Mackenzie Commercial Finance, we broker business loans for limited companies and LLPs from £15,000. Sole traders and small partnerships need over £25,000.
For less than that, please speak to us before you apply. We only arrange smaller amounts in person, at our office, in the IV postcode area.
We set no top limit of our own. Lenders set different limits. We have a panel of over 120 lenders, and more than 30 of those arrange business loans. So we can spread a big need across several.
How long must my business have been trading?
Most lenders prefer a business that is well set up. Most ask for at least a year of trading. Some will look at a business after a few months. A few will look at a brand new business, when the plan stands up. Our free business plan template puts your plan in the shape a lender reads.
Who has the most lenders to choose from?
A limited company whose director owns their home and gives a personal guarantee has the widest choice. A new business with a director who rents has fewer lenders to choose from. So does a sole trader, of any kind. Fewer is not none. It just means the right lender matters more.
What if I have bad credit?
Many people told they have bad credit get a loan with no problem. It is often about how the case is set out for the lender. We never promise a yes, but we will tell you straight.
What should I get ready before I apply?
Lenders ask about two things: your business, and the loan. This free checklist has both. Fill it in, then print it or save it as a PDF. Nothing you type here is sent to us.
How do you get paid, and what does the finance cost?
The lender pays us a commission, only once your finance is in place. There is no fee to apply, and no fee up front. Apply by phone, by email, or online with Donnie, our in house AI agent, in under 5 minutes.
If you stop before your finance is in place, you owe us nothing, unless you agreed the rare inspection fee. The lender pays our commission to our principal, the firm we work under. It is already inside any figures we give you.
Most lenders pay a share of the amount borrowed. It is up to 10% of what you borrow, and often less. It depends on the lender. You see it before you sign. Lenders pay different amounts, so the one we find may not pay us the most, or the least. A dealer who arranges finance is a broker too.
Lenders' own fees vary. As a guide, a fee to set up the agreement is about £100 to £500. It is often paid with the first payment. Some charge about £30 to £50 a year. On hire purchase, about £100 to £300 to own the asset at the end.
Do you arrange business loans across the UK?
Yes. Our office is in Scotland. From there we help businesses all over Scotland and the UK.
A lot of our lenders let you sign online. So where you are does not matter.
How long does a business loan take?
Our team gets back to you within a day. After that, it depends on the lender and your case. Our fastest has been the same day, for a simple case. A hard case can take a few weeks. The more notice you give us, the more lenders we can ask.
★★★★★
Excellent service as ever from Martin at Mackenzie Commercial Finance who looks after various parts of our financing for us.
Business loan questions
What is the easiest business loan to get?
No loan is easy for every business. The easiest one is with a lender whose rules fit your business. That is what a broker is for. We know what each lender looks for, so we only ask the ones likely to say yes.
How much deposit do you need for a business loan?
A business loan does not need a deposit. You borrow the money itself. If the loan is to buy an asset, asset finance may suit better. There, a deposit of 5 to 10% is usual.
How do I qualify for a business loan?
Lenders look at how long you have traded, and at your accounts and bank statements. They check the business can afford the payments. They also look at the credit record of the business and its directors. Most ask a director for a personal guarantee.
What are business loan interest rates?
Each lender sets its own rate, based on your business, the amount, the term and any security. We do not give a rate until lenders have seen your case. The quote we send you shows the full cost before you sign.
Does applying for a business loan mean a credit check?
Applying to us is not a credit search, and it does not touch your credit score. A person in our team reads it first. To go ahead, you sign our consent form. Then we run a light credit check on the company, often known as a soft search. Each lender then does its own check.
Can a start up business get a loan?
Yes, start up business loans are possible, but there are fewer lenders. A few will look at a brand new business with a plan that stands up. Owning your home helps, but it is not a must.
Can I pay off a business loan early?
Usually, yes. Some lenders charge for paying early, and some do not. If you may pay early, tell us first, so we can look for a lender that suits.
Do you give financial advice?
No. We are a broker, and we do not give advice. We find lenders and show you what they offer. The lender makes the decision, and you choose with all the facts.
How do I apply for a business loan?
Apply online with Donnie, our in house AI agent, at any time, or call us. Donnie can also ask our team to call you back. We will tell you straight what is possible, and what happens next.
Use an AI assistant? It can ask Donnie questions for you. It finds him at /llms.txt and /api/agent.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie