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Business Funding UK, A Complete Guide for Small Businesses

This guide explains how business funding works in the UK, the main types available, who provides it, and how to apply. It is written for business owners who want factual information without sales pressure.

In short: we take enquiries from £10,000 upwards, and the lender sets the amount. Funding comes through banks, alternative lenders or brokers. The most common types areterm loans (fixed monthly repayments), invoice finance (borrowing against unpaid invoices) and asset finance (spreading the cost of equipment). Each lender publishes its own decision time and sets the pace.

Alex BeardsleyFounder & Director

Updated July 2026

Types of Business Funding Available in the UK

There are several types of business funding, and each works in a different way. Here is a factual overview of the main options; which one a business uses is its own decision.

Term Loans

A fixed amount borrowed over a set period with regular monthly repayments. Interest is usually charged as an annual percentage rate (APR). The repayment is the same each month, so the business commits to a fixed monthly amount for the term.

Invoice Finance

Invoice finance lets you borrow against the value of unpaid invoices. You receive a percentage of the invoice value upfront, set by each lender, and the remainder (minus fees) when your customer pays. Commonly used by B2B businesses with long payment terms.

Asset Finance

Asset finance helps you spread the cost of equipment, vehicles, or machinery over time. You use the asset while making payments. At the end of the agreement you may own the asset outright or return it, depending on the type of arrangement.

Questions about the types of funding?

CapExpand introduces you to lenders on our panel whose published criteria your business meets. No obligation, 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.

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Who Provides Business Funding in the UK

The UK has a growing alternative finance market alongside traditional bank lending. Providers run from high-street and challenger banks to alternative lenders, peer-to-peer platforms and specialist asset finance and invoice finance houses, and each one publishes its own entry points, amounts and terms.

High-street banks also offer business lending, and each publishes its own process and eligibility requirements.

How to Apply for Business Funding

There are three main routes to apply for business funding in the UK:

1. Apply directly to a lender

Visit the lender's website and complete their application. You will need to provide business details, trading history, and financial information. Each lender has its own criteria and process.

2. Apply through your bank

Your existing bank may offer business loans, overdrafts, or other facilities. This can be convenient if you have an existing relationship, and the bank publishes its own process and requirements.

3. Use a commercial finance broker

A commercial finance broker (like CapExpand) reviews your details and puts your case to lenders on our panel whose published criteria it meets. The broker does not lend money or provide financial advice; the lender makes the final decision. This can save time if you are unsure which lender to approach.

General Eligibility Requirements

Requirements vary by lender and funding type. Published entry points include:

UK-registered business
Trading history: each lender publishes its own minimum; through us a company needs at least three months of trading
Monthly revenue: each lender publishes its own minimum
Active business bank account
No active insolvency proceedings

Credit history is considered but is not always a deciding factor, particularly where a lender's published criteria focus on trading performance rather than credit score.

Frequently Asked Questions

What is business funding?

Business funding is any external finance a business uses to cover costs, invest in growth, or manage cash flow. In the UK, the main types include term loans, invoice finance, and asset finance. Each works differently, and the choice between them is the business’s own.

How do I get business funding in the UK?

You can apply directly to a lender, through your bank, or through a commercial finance broker like CapExpand. We check your details against each lender's published criteria. Most applications take a few minutes to complete; each lender publishes its own decision time and sets the pace.

How much business funding can I get?

The amount depends on your monthly revenue, trading history, and the type of funding. We take enquiries from £10,000 upwards; where a given business lands is set by the lender at assessment.

Do I need good credit to get business funding?

Not necessarily. Each lender sets its own view of credit history, and some weight trading history more heavily; the age of any mark, whether it is satisfied and the explanation all matter. 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.

What is a commercial finance broker?

A commercial finance broker connects businesses with lenders but does not lend money directly or provide financial advice. CapExpand is a commercial finance broker: we review your details and put your case to the lenders on our panel whose published criteria it meets. The lender makes the final approval decision. We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed.

How quickly can I receive business funding?

Speed varies by funding type and provider, and the lender sets it. Each lender publishes its own decision and payout time, and funds follow once paperwork is signed. Term loans may take longer due to additional underwriting. The completeness of your application affects the timeline significantly.

What are the main business funding providers in the UK?

The UK market takes in high-street banks, challenger and specialist banks, alternative lenders and peer-to-peer platforms, alongside specialist asset finance and invoice finance providers. Each sets its own criteria, amounts and terms.

Is business funding regulated in the UK?

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. If you have a complaint, our complaints page explains how it is handled.

About CapExpand

CapExpand is a UK-based commercial finance broker founded by Alex Beardsley. We take enquiries for funding from £10,000 upwards and introduce UK limited companies and LLPs to lenders through our panel.

We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed.

Based in Annesley, Nottingham. Phone: 0333 041 3127. Email: hello@capexpand.com.

See what funding is available to your business

Fill in a short form and a member of our team will review your details. No obligation.We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed. 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.

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Sources and references

CapExpand is a commercial finance broker, not a lender. We do not provide financial advice. All funding is subject to status and lender approval. The information on this page is for general information purposes and does not constitute financial advice.