Business loans
The classic way to fund a business: borrow a lump sum, repay it monthly over a set term. The big decision is whether you go unsecured, which is faster, or secured against property or assets, which typically gets you more money for less. We introduce limited companies and LLPs to a panel of lenders and lay out both routes so you can see which fits.
By the CapExpand Team, led by Alex Beardsley
·Updated July 2026
£10k–£500k
Typical unsecured range
Days
Unsecured decisions
Ltd & LLP
Who we help
No fee
You never pay us
The short version
As a general guide, unsecured loans are faster and simpler: typically £10k to £500k over one to six years, with decisions in days but a personal guarantee as standard. Secured loans put up property or assets in exchange for more money, longer terms and typically lower rates, at the cost of valuation and legal work that adds time and expense. If speed is the priority you will probably end up unsecured, and if price or size is, secured. We don't give advice, but we'll put both side by side so you can decide.
What a business loan is
A lump sum lent to the company, repaid in fixed monthly instalments over an agreed term, with interest. Nothing flexes with your sales and there is nothing to draw down later, it is just a straightforward debt with a known monthly cost, which is why it is still the default for most businesses.
Every business loan sits in one of two camps. Unsecured means the lender relies on the strength of the business and, almost always, a personal guarantee from the directors. Secured means the lender also takes a legal charge over something of value, usually property or business assets, which lets them lend more, for longer, at a typically lower rate. The rest of this page is about choosing between the two.
Unsecured business loans
The fast lane. No asset to value and no legal charge to register, so for a clean limited company a decision can come back in days, sometimes 24 to 48 hours. Typical amounts run from around £10,000 up to around £500,000, with terms commonly one to six years. All the figures here are a guide, not a quote. Your numbers decide.
The trade-off is that the lender carries more risk, so unsecured money typically costs more than secured, the amounts are smaller, and a personal guarantee from the directors is standard. "Unsecured" refers to the company's assets, not to you personally: if the company cannot repay, the guarantee means the lender can come to the guarantors. Worth understanding properly before you sign.
Secured business loans
Borrow more for less by putting something up. The security is usually commercial or residential property owned by the company or its directors, though business assets such as machinery and vehicles can work too, and some lenders take a debenture over the business as a whole. Because the lender has something to fall back on, secured loans typically offer larger amounts, longer terms and lower rates than unsecured borrowing.
The catch is the process. The lender will want the security valued and a legal charge registered, which adds weeks to the timeline and valuation and legal fees to the cost. Factor those in when comparing against an unsecured quote; a lower rate does not automatically mean a lower total cost on a small, short loan.
And the obvious point that still needs saying: if the loan is secured on property or assets and the company cannot repay, that security is at risk. Borrow against the premises or your home with your eyes open.
Secured vs unsecured at a glance
Where each typically lands. A general guide, not a quote.
| Unsecured | Secured | |
|---|---|---|
| Typical amount | ~£10k to ~£500k | Larger, sized on the security |
| Typical term | Commonly 1 to 6 years | Often longer |
| Typical pricing | Higher rate for the risk | Typically lower rate |
| Speed | Decisions can be days | Weeks, valuation and legals |
| Security | None, but PG standard | Property or assets at risk |
| Extra costs | Arrangement fee, if any | Valuation and legal fees on top |
A quick rule of thumb
Unsecured wins when speed matters or there is nothing sensible to offer as security. Secured usually makes sense on larger amounts, where a longer term or a lower rate justifies the extra weeks and fees. It is case by case, and we will tell you straight which lenders fit yours.
What lenders look at
Trading history
How long, how steadyMost lenders want to see time trading, often six months to a few years, and the longer and steadier it looks the more doors open at better prices.
Turnover & affordability
Accounts & bank statementsFiled accounts and recent bank statements show whether the repayments fit comfortably. Loans are often sized against monthly turnover.
Credit profile
Company & directorsBoth count here, the company’s record and the directors’ personal credit. Blips are not always fatal, but expect questions.
The guarantee or security
What backs the loanOn unsecured, the strength of the personal guarantee. On secured, the value and saleability of the property or assets offered.
A term loan is not the only tool. A revolving credit facility gives you a limit to dip in and out of rather than a lump sum, covered on our working capital page. And where a lender likes the business but wants extra comfort, the government-backed Growth Guarantee Scheme can help a loan over the line. For a specific asset, asset finance is usually the sharper tool, and if slow-paying customers are the real problem, look at invoice finance. Already carrying expensive debt? Refinancing may beat borrowing more on top.
Who it suits
A term loan tends to be a good fit when:
- ✓You need a defined lump sum for a defined purpose, not an ongoing facility
- ✓Your income is steady enough to carry a fixed monthly payment comfortably
- ✓You want a predictable cost you can budget against for the life of the loan
- ✓For secured: you own property or assets and want a larger amount, longer term or lower rate
It is a weaker fit when income is lumpy or seasonal, where a fixed payment can pinch in quiet months. Options that flex with your takings are covered on our working capital page.
A note on who we take on
We currently work with UK limited companies and LLPs only. We complete non-regulated introductions and are not authorised by the Financial Conduct Authority, so we cannot take on sole traders or partnerships right now.
How it works
Tell us what you need
How much, what for, and a bit about your turnover and trading. Two minutes on the form or a quick call.
We match you to lenders
We put your case to the lenders on our panel best suited to your size, sector and whether secured or unsecured fits.
You compare the terms
Rate, term, fees, the guarantee or security asked for, and the total repayable, side by side with the catches flagged.
Funds in the account
Unsecured can complete within days of signing. Secured follows valuation and legals, and we keep it moving.
Common questions
How much can my business borrow?▼
It depends on your turnover, profitability and trading history rather than a fixed cap. Unsecured business loans typically run from around £10,000 up to around £500,000, with lenders often sizing the loan against monthly turnover and what the accounts show you can afford. Secured loans can go considerably higher because the security reduces the lender’s risk. These are a guide, not a quote; we will tell you what looks realistic for your numbers before you apply.
Do I need a personal guarantee for a business loan?▼
Usually, yes. Personal guarantees from the directors are standard on unsecured lending to limited companies and common on secured lending too. A guarantee means you are personally on the hook if the company cannot repay, so take it seriously and consider independent legal advice before signing. Some lenders will lend without one, but expect a smaller amount or a higher price.
Secured vs unsecured business loan — which is right?▼
Unsecured is the quicker and simpler of the two, because there is nothing to value and no legal charge to register, so decisions can come back in days. Secured gets you the better price, the bigger amount and the longer term, because the lender has something to fall back on. If you need the money fast or have nothing sensible to offer as security, unsecured is usually the practical route. For a larger amount or a lower rate against property or assets, secured is usually worth the extra time. We don’t give advice, but we will set both out side by side so you can decide.
How fast can I get a business loan?▼
Unsecured is the quicker of the two. For a clean limited company with decent accounts, decisions can come back within a few days and sometimes within 24 to 48 hours, with funds shortly after. Secured loans take longer because the lender needs to value the security and complete the legal work, which typically adds weeks rather than days.
Can I get a business loan with bad credit?▼
Honestly, it is harder, and anyone promising otherwise is not being straight with you. Adverse credit narrows the panel and pushes up the price. What helps: offering security, a stronger personal guarantee, a solid recent trading record, or a clear explanation of what went wrong and what changed. Some lenders specialise in businesses with imperfect credit. We will tell you upfront whether your case is placeable, with no promises we cannot back up.
What can I use a business loan for?▼
Most business purposes: stock, staff, marketing, refurbishment, equipment, expansion, or consolidating more expensive borrowing. Lenders will ask what the money is for and some purposes are easier to fund than others. If the money is for a specific asset or unpaid invoices, a dedicated product such as asset finance or invoice finance can work out cheaper than a general loan.
What can I use as security for a secured loan?▼
Commercial or residential property the company or directors own is the most common, followed by business assets such as machinery, vehicles or equipment. Some lenders take a debenture, a floating charge over the business as a whole. The stronger and more saleable the security, the more you can typically borrow and the better the pricing tends to be.
Can a new business get a loan?▼
It is possible but harder. Most unsecured lenders want to see trading history, often six months to two years of it, plus filed accounts or bank statements. A newer business can improve its chances with security, a strong director guarantee, or a healthy recent turnover run. Schemes such as the Growth Guarantee Scheme can also help where a lender likes the business but wants extra comfort.
Are business loans FCA regulated?▼
Lending to limited companies and LLPs is generally not regulated by the FCA. Some lending to sole traders and small partnerships, broadly where the amount is £25,000 or less, is regulated consumer credit. CapExpand works with limited companies and LLPs only, introduces on a non-regulated basis, and is not an FCA-authorised firm.
Does CapExpand lend the money?▼
No. We are not a lender. We introduce UK limited companies and LLPs to a panel of lenders and help you compare the options. The lender pays us a commission if a loan completes, never you.
Sources
- British Business Bank, business finance guidance
- British Business Bank, Growth Guarantee Scheme
- FCA, consumer credit and business lending
- Bank of England, base rate
- NACFB, commercial finance standards
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We do not arrange regulated residential mortgages, consumer buy-to-let mortgages or any other regulated mortgage contracts. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Loans to limited companies for business purposes are generally not FCA regulated.
Ready to see your options?
Tell us how much and what for, and we'll come back with the lenders best placed for it, secured and unsecured side by side. Free to use, no obligation.