Business loan repayments: monthly cost tables for £10k, £25k and £50k
The table below works the monthly cost of a £10,000, £25,000 and £50,000 business loan over one, three and five years. It uses one illustrative rate, chosen because it makes the sums easy to follow, not a rate any lender has quoted. Each lender prices a case on its own criteria, and the lender's own offer is the only figure that counts.
All figures use the standard amortisation formula every lender uses (monthly payment = loan × monthly rate ÷ (1 − (1 + monthly rate) to the power of minus the number of months)), so you can reproduce any of them.
An arithmetic illustration at a rate chosen for the sums, not a rate any lender has quoted
The rate used is 12% a year, picked because it keeps the arithmetic simple. Shorter terms mean higher monthly payments but less interest overall; the five-year column costs the least per month and the most in total. Reading the total column, not just the monthly one, is the habit this table is meant to build.
| Amount (12% a year, illustrative) | 1 year | 3 years | 5 years |
|---|---|---|---|
| £10,000 | £888/mo · £10,662 total | £332/mo · £11,957 total | £222/mo · £13,347 total |
| £25,000 | £2,221/mo · £26,655 total | £830/mo · £29,893 total | £556/mo · £33,367 total |
| £50,000 | £4,442/mo · £53,309 total | £1,661/mo · £59,786 total | £1,112/mo · £66,733 total |
What the tables leave out
Three things sit outside a clean amortisation table. Arrangement fees, where charged, either add to the balance or come off the advance, so ask for the total payable with fees included. Early settlement usually saves interest on a loan, subject to any early repayment charge. And the rate you are offered reflects your trading, your credit profile and any security, so the illustrative rate here is for the arithmetic only and a real quote is the only number that counts.
How real pricing differs from the illustration
The rate above is there for the arithmetic, and real offers land either side of it. Size is one reason. A £10,000 unsecured case takes the same underwriting work as a £100,000 one, and each lender prices that into its own rates.
Secured money reads differently again: a charge over property supports a much longer schedule than any unsecured lender would write, which lowers the monthly figure and raises the total. None of this is an offer or a quote.
The panel behind this page
We have access to a range of UK commercial finance lenders through our principal, White Rose Finance Group Limited. We check criteria first and approach only the lenders whose requirements you fit.
Frequently asked questions
How much is a £10,000 business loan per month in the UK?
The illustration above shows the arithmetic at one chosen rate. The exact figure comes from the standard amortisation formula and the rate the lender actually quotes you, which depends on your business and the lender.
Is a shorter or longer business loan term cheaper?
Shorter terms cost less in total but more per month; longer terms reverse that. In the illustration, the £25,000 loan over one year carries far less interest than the same loan over five years at the same rate. The practical question is what monthly payment the business’s cash flow genuinely supports across its quiet months, not just its good ones.
Are these the rates CapExpand can get me?
No. These are arithmetic examples, not rates. Each lender prices a case on its own criteria.
Is CapExpand FCA regulated?
CapExpand Ltd (FRN 1060885) is a credit broker and an Appointed Representative of White Rose Finance Group Limited (FRN 630772), which is directly authorised and regulated by the Financial Conduct Authority. We are a broker, not a lender. We work with UK limited companies and LLPs only, for business and commercial purposes. Both firms appear on the Financial Services Register at register.fca.org.uk. We do not give advice.
Related pages
Want the lender's own figures?
Three minutes, and enquiring does not affect your credit score. If you apply to a lender, it runs its own credit search, which may be recorded on your file. Introductions come back with the lender’s actual rate and total payable.
You speak to a person who looks at your numbers; nothing is submitted anywhere until you say so.
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