Which short term business loan
is best for you?

How much do you want to borrow?

£

For how long?

months

You would like to borrow £5000 over 12 months

The table below has been updated, with the cheapest lending option at the top.  Please use the Visit Site buttons to apply, or re-enter loan information for another comparison.

If you’re a small business owner, you know how important working capital is for taking advantage of opportunities that come up in order to boost your profits and grow your business. Sometimes, you don’t have capital available to purchase equipment or make other investments that you need to make to keep your company running at its full potential. That’s when you need a business loan from a reliable lender that will give you fair rates and a straightforward loan agreement with no surprises.

Who can take out a business loan?

Eligibility for a business loan will depend on a variety of factors specified by the lender. In general, a business will have to have been in operation for a certain period of time – usually around six months minimum, before being approved for a business loan. Businesses also often need to meet certain minimum revenue requirements. If your business doesn’t yet have a reliable revenue stream, it will be difficult to be approved. However, if your business has an established track record of turning over profits every month, you have a good chance of being approved.

How much can a business owner borrow?

Business loan amounts vary widely by lender and by business. How much you can borrow will be limited by how much money you’re making. Your credit score and history will also be factored into decisions on how much money you’ll be approved to borrow for your business. A typical business loan could range from as little as £1,000 to over £150,000. Before you’re approved for a loan, a business loan lender will assess how much your company can afford to borrow. Loan terms also vary significantly, but companies always tend to pay more in interest when they take out loan funds over a longer loan term. A short term business loan could range from only a month or two to over a year.

What can I use loan funds for?

Usually, business owners approved for a business loan enjoy a great deal of freedom when it comes to what they’re using their loan funds for. Whether you need to purchase some new equipment or hire more workers to complete a big project, you can use loan money as you see fit. In many cases, you might even be able to use your business loan money for personal expenses that will help you keep your business running.

How much will a business loan cost me?

Any business loan will come with interest charges. Your interest rate will typically be around 2% to 6% per month over the life of the loan. Business loan interest is sometimes calculated according to daily accrual. If you have a business loan accruing daily with a 3% interest rate, you’ll pay £1 every day in interest for each £1,000 increment of your loan amount. When you take out a business loan, you should look for a loan provider that adds on as few fees as possible. Ideally, you shouldn’t have to pay any origination, early repayment, or arrangement fees.

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

ProviderLoanRepayment: £5000
over 12 months
Representative APRMaximum TermUser Reviews
MinMax
Funding Circle
£5,000
£1,000,000
£5,332.00
8.3%
60
Months

Rated 4.6 / 5 by
by 120 users

Read Reviews

Representative Example:
Loan Amount £5,000 over 12 Months. 12 Payments of £435. APR 8.3% Total Repayable £5,332.

Ezbob
£1,000
£120,000
£5,650.00
25.8%
24
Months

Rated 4.6 / 5 by
by 114 users

Read Reviews

Representative Example:
Loan Amount £5,000 over 12 Months. 12 Payments of £470.83. APR 25.8% Total Repayable £5,650.

Iwoca
£1,000
£100,000
£5,975.00
19.5%
12
Months

Rated 4.6 / 5 by
by 107 users

Read Reviews

Representative Example:
Loan Amount £5,000 over 12 Months. 12 Payments of £497.92. APR 19.5% Total Repayable £5,975.

Fleximize
£1,000
£150,000
£6,300.00
55.5%
24
Months

Rated 4.7 / 5 by
by 107 users

Read Reviews

Representative Example:
Loan Amount £5,000 over 12 Months. 12 Payments of £525. APR 55.5% Total Repayable £6,300.

Whilst we make every effort to ensure that the information is up to date, you should always confirm the terms of the offer with the product provider.



5 most recent business loan reviews

Review of Funding Circle

As the proprietor of a small but very busy company that specialises in tailor made gowns, I have to occasionally rely on small business loans. Up to now I have been using my bank for these loans but in recent years they have not been as convenient and competitive as I would like. I decided this time round to use one of the online loan companies instead and Funding Circle was one of the first to catch my eye and I really liked what they were offering with their loans. I chose them after doing a little bit of further research and I really don't think I could have found a more convenient and competitive business loan anywhere else. I may not need another loan for a while but this 1 year loan with Funding Circle is perfect for my small business and I'll be sure to keep them in mind in the future.

Review posted by Caroline Grant Gowns, Tunbridge Wells

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Funding Circle

For a simple, straightforward business loan we don't think you could go far wrong with Funding Circle. Certainly for us this is the ideal type of small business loan and now that we've had our first loan arranged and we are about to commence the loan repayment period we would just like to say a huge thank you to Funding Circle for the way in which they have handled our loan application and for the speed and efficiency of it. We thought we might be waiting a bit longer to get things finalised but it was all done and rubber stamped so to speak in less than a week. Excellent service from an excellent loan company.

Review posted by David Marshall & Associates, Hampstead

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Funding Circle

We've only ever used our bank for previous business loans but we're aware of the online business loans that are available and decided to try one for ourselves when this current business loan was needed. What a refreshing alternative to the traditional bank loan this has turned out to be. Getting such a quick decision on our loan application was really good because it saved us the anxious wait you normally get when waiting for a bank loan. Once we had the loan approved we were all fired up and ready to start making plans for a new project that wouldn't have been possible without this very convenient and affordable loan from Funding Circle. We might be new customers but we already know we are going to get on great with Funding Circle and hope this is the first of many affordable and competitive loans from them.

Review posted by P. Gibbons, Cirencester

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Fleximize

Fleximize have arranged a very good revenue advance loan for our company that is going to help us enormously over the next year or so. Without this loan we would have been held back from tendering for several upcoming jobs which could prove very profitable for us if we are lucky enough to land even just one of them. We really don't think we could have even considered these contracts without the back up of this revenue advance loan so we'd like to say a big thank you to Fleximize and we'll keep our fingers crossed that we have some success with these tenders.

Review posted by Stanton Flooring, Ruislip

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Fleximize

A new van and a new office computer was more than my profits could stretch to but thanks to this fantastic revenue advance loan from Fleximize we have got over that hurdle and business is running smoothly again. My driver is happy with his new van which we've just taken delivery of and Sally our office manager is delighted with the new computer. Without loans like this from Fleximize small businesses like mine would not run as well as they could and my staff are a lot happier in their work thanks to this recent loan. I'm wondering how long it will take for some other staff members to start complaining and what I'll be needing another loan for. there's a bit going to be left over from this loan so maybe I can stretch to a new microwave in the staff kitchen.

Review posted by Kestrel Windows, Leicester

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money