Small Business Loans Borrow up to £500,000

Borrow £1,000 – £500,000 for 1 day to 2 years with our flexible business loans.

24 hours to get a decision

Easy Application

No fees for repaying early

Hassle Free

  1. Home
  2. /
  3. Funding Options
  4. /
  5. Small Business Loans Borrow up to £500,000

Summary:

  • A small business loan is designed to help small businesses gain access to capital.
  • To be eligible the business owner must be over 18 and the business is a limited company in the UK.
  • Small businesses can apply for a loan between £1,000 – £500,000 online using the For Kredit online application.
  • Interest rates vary between 2%-6% with a maximum repayment term of 24 months.
  • Once approved, money can be pinged into your business bank account within a matter of minutes of the deal being finalised.

What is a small business loan?

A small business loan is an unsecured finance option that allows businesses to borrow money. It aims to help smaller businesses receive access to funding which they can use for a variety of reasons to improve their business. 

How does a small business loan work?

A small business loan works by a business owner borrowing an amount of money which is determined by the lender. If successful, the funding is transferred into the designated business bank account. The small business is then expected to repay the loan via monthly repayments which include added interest rates.

How can I apply for a small business loan?

Small businesses can apply for a small business loan by completing the online application on the For Kredit website. The application form has been designed with simplicity in mind so that businesses can complete the application in a matter of minutes. The online form is compatible with mobile and desktop devices.

How much money can I borrow with a small business loan?

Small businesses can borrow a loan amount between £1,000 – £500,000 when they apply for a business loan with For Kredit. It is important to note that funding is determined by the lender and the amount that is applied for may not be the amount that is eventually received. 

Am I eligible for a small business loan?

To be eligible for a small business loan, the following criteria must be met:

  • Director with a UK address required
  • Must be a UK limited company or limited partnership
  • Minimum turnover of £10k
  • Must have been trading for more than 6 months

It is important to reiterate that these are the minimum criteria needed to be considered eligible for a loan. If a business matches the above criteria it does not necessarily mean that the business will be approved for small business financing.

What are the repayment terms of a small business loan?

The maximum repayment period that a small business can opt for is 24 months and interest rates will vary between 2% – 6%. One of the benefits is that there are no early repayment fees, as interest is only charged each day that the business has not repaid the borrowed amount of money.

Will I need to sign a personal guarantee?

Although the small business loans are unsecured, the director of the limited company will be required to sign a personal guarantee. The personal guarantee legally ensures that the director of the company will take personal responsibility for the debt should the business not be able to repay the loan. This helps minimise the risk to the lender should debt remain unpaid.

What other types of finance might be useful for a small business?

It is important to look around the market to find what financial product is right for your business. At For Kredit, we are able to help business owners find a variety of different types of finance that they need. 

What are the benefits of a small business loan?

Fast application process

The application process for a small business loan is faster than other ways to raise capital, such as via a grant for instance. It allows small businesses that are approved for finance to receive the money within as little as 24 hours which makes it a useful form of funding for businesses seeking money in the short-term. 

Unsecured Business Loans

One of the benefits of the small business loan is that it can be used flexibly. Unlike grants which can be more restricted, a small business loan provides the business owner with greater levels of freedom when using their funding. This means the business owner has greater autonomy in how they use the money to improve their business and meet their goals.

Flexible Business Funding

One of the benefits of the small business loan is that it can be used flexibly. Unlike grants which can be more restricted, a small business loan provides the business owner with greater levels of freedom when using their funding. This means the business owner has greater autonomy in how they use the money to improve their business and meet their goals.

Why do businesses apply for small business loans?

To aid with cash flow

It is common for small businesses to use a small business loan to invest in their business. It can be a useful option for fixing an old problem such as replacing a faulty or outdated piece of equipment with something modern or up to date. Alternatively, it can be used for marketing to help improve the visibility of the brand to attract new customers. 

To Invest and improve

It is common for small businesses to use a small business loan to invest in their business. It can be a useful option for fixing an old problem such as replacing a faulty or outdated piece of equipment with something modern or up to date. Alternatively, it can be used for marketing to help improve the visibility of the brand to attract new customers. 

To deal with the unexpected

Running a small business can throw up a number of obstacles that are sometimes not the fault of anybody but can be very costly and appear at very inconvenient times. A small business loan can help businesses to manage and navigate through unexpected obstacles.

To expand and grow

It’s common for small business owners to want to expand their business, but typically this requires working capital. A small business loan provides an opportunity for businesses to expand their business to seize goals in the short-term rather than the long-term. 

Is there a difference between a business loan and a personal loan?

Yes. A business loan is to be used for business purposes only such as hiring new employees, covering cash flow or general investment into the company. A personal loan is for personal use only and is not allowed to be invested in the business. For Kredit only helps with business loans.

Is there a difference between a business finance and a personal loan?

Yes. A business loan is to be used for business purposes only such as hiring new employees, covering cash flow or general investment into the company. A personal loan is for personal use only and is not allowed to be invested in the business. For Kredit only helps with business loans.

I have bad credit, will this impact my application?

Although the credit rating of the business owner will be checked, the lender will also analyse the performance of the business before approving a loan. Therefore, bad credit is not the only factor analysed during the application although it will be considered as part of the overall assessment of an application.

Credit checks are a mandatory requirement as it helps the lender ensure that the lender lends responsibly. Only soft checks will be used, so your credit rating will not be affected should you choose to apply.

What are the rates and fees on small business loans?

Interest rates charged with a small business loan vary from 2% – 6% per month. Interest accrues on a daily basis which means that you only pay each day that you have not repaid the loan. 

FAQs

How much can I borrow when applying for a small business loan?

Small businesses can apply for a business loan between £1,000 – £500,000 when they apply online with For Kredit. The amount borrowed is determined by the lender, this means that the amount borrowed may differ from the initial application. 

How can I apply for a small business loan?

Small businesses that wish to apply for a loan can do so by applying online at the For Kredit website. The application is completely online and is quick and easy to fill out. The online form is compatible with both desktop and mobile devices. 

How long do I have to repay the small business loan?

You can choose to repay your loan between 1 – 24 months. The repayments are typically made in monthly instalments plus interest.

Are small business loans eligible for tax deductions?

While you cannot deduct the principal repayment of a small business loan for income tax relief, the interest payments on these loans can be deducted as they are considered a business expense.

What are the repayment periods for small business loans?

Small business loans, including local business funding, typically have varying repayment terms, ranging from as short as one month to over 10 years for secured loans. The specific terms depend on factors such as the loan amount, loan type, interest rate, and your ability to comfortably make repayments.

What are the best options for small business loans?

There is no single “best” small business loan, as the choice depends on various factors. Capalona is dedicated to assisting businesses in finding the most suitable loans for their needs.

Can I obtain a small business loan without collateral?

Yes, it is possible to secure a small business loan without requiring collateral. These loans are unsecured and do not necessitate the use of business assets as security.

What can I use a small business loan for?

Small business loans have a broad range of applications, including:
Investing in inventory.
Expanding or renovating your business premises.
Hiring additional personnel.
Acquiring new equipment.
Covering unexpected expenses, such as unforeseen bills or seasonal economic fluctuations.

What is a business loan calculator and how can it help me?

A business loan calculator is a tool that helps you estimate the potential costs and payments associated with a business loan, allowing you to better plan and budget for your financing needs.

Can I get a small business finance with bad credit?

Yes, there are options for getting a small business loan with bad credit, such as seeking out lenders who specialize in working with businesses with less-than-perfect credit.

Is it possible to get a small business loan without affecting my credit score?

Some lenders offer pre-qualification processes that allow you to check your eligibility for a small business loan without impacting your credit score.

What is an unsecured small business loan?

An unsecured small business loan is a loan that does not require collateral, making it a potentially attractive option for businesses that may not have significant assets to pledge as security.

What types of small business loans are available?

There are various types of small business loans, including term loans, business lines of credit, startup loans, working capital loans, and more, each tailored to different business needs.

How can I grow my business with a small business loan?

A small business loan can be used to invest in new equipment, hire additional staff, expand your premises, or launch a new marketing campaign, all of which can contribute to the growth of your business.

What types of small business loans are available?

There are various types of small business loans, including term loans, business lines of credit, SBA loans, equipment financing, invoice financing, and more, each tailored to different business needs.

Some lenders offer pre-qualification processes that allow you to check your eligibility for a small business loan without impacting your credit score.

Find the right loan for your business

  • Loans from £1k to £500k
  • No fixed repayments
  • No collateral needed
APPLY NOW

Will You Qualify For A For Kredit Loan?

There are four main criteria for qualifying for a For Kredit loan.

If you can answer yes to all of these, then you have a good chance of being approved.

You’re a director with a UK address

You’ll also need the relevant documentation to prove this – a passport or a birth certificate are fine.

You’re a UK limited company or limited partnership

We only work with UK businesses.

You have a turnover of at least £10k

We can accept applications from all businesses (no matter the age or industry)

You have been trading for over 6 months

Your business must be at least 6 months old to be accepted.

A Simple Application Process

  • Apply online in 5 minutes

    Decide how much money you need to borrow and fill the online application with all your details.

  • Approval in just 24 hours

    Once your business loan has been authorized, you have the flexibility to transfer the required amount to your bank account. The funds will be deposited into your account within just a few hours.

  • Borrow up to 2 years

    How you pay back your business loan depends on your situation. If you want to pay it back early, there won't be an extra fee.

A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.