Business Loan
Calculator UK

To calculate business loan repayments, you need three key figures: the loan amount (principal), the interest rate (APR), and the loan term. Our free business loan calculator uses the standard amortization formula to show your monthly repayments, total interest payable, and overall cost. Simply enter your figures above to get instant results for any loan for business scenario.

UK businesses can access several types of business loans UK: Traditional bank loans, startup business loans for new ventures, small business loans from alternative lenders, government business loan schemes including the Recovery Loan Scheme, asset-based lending, invoice finance, and merchant cash advances. Each type has different eligibility criteria, interest rates, and terms.

Yes, startup business loans are available for new businesses. Loans for starting up a business include the government-backed Start Up Loans scheme (up to £25,000 at 6% APR), director's loans, crowdfunding, angel investors, and specialist lenders for business loans startup ventures. You'll typically need a solid business plan and may require personal guarantees.

Business bounce back loans were a COVID-19 emergency scheme that closed in March 2021. If you have an existing Bounce Back Loan, Pay As You Grow (PAYG) options let you extend the term to 10 years, make interest-only payments for 6 months, or take payment holidays. For new borrowing, the Recovery Loan Scheme and other government business loan options are available.

Business loans UK interest rates typically range from 5% to 15% APR for established businesses with good credit. Startup business loans may have higher rates (8-20% APR). Government small business loan schemes like the Recovery Loan Scheme offer competitive rates. Your rate depends on credit history, time in business, security offered, and loan amount.

Small business loans in the UK typically range from £1,000 to £500,000, depending on the lender. The government Start Up Loans scheme offers up to £25,000. Small loans for business from alternative lenders can be approved quickly. Traditional banks may lend higher amounts with suitable security. Use our loan calculator business tool to see what you can afford.

Yes, several government business loan schemes exist. The Start Up Loans scheme offers up to £25,000 for new businesses at 6% APR. The Recovery Loan Scheme provides gov loan for small business from £25,001 to £2 million with government guarantees. Regional growth funds and devolved nation schemes also offer government loan small business options with favourable terms.

Secured business loans require collateral (property, equipment, or assets) and typically offer lower interest rates and higher borrowing limits. Unsecured loan for business options don't require assets as security but have higher rates and lower limits. Many small loans for business are unsecured, while larger amounts usually require security.

Business loan approval times vary. Online lenders may approve small business loans within 24-48 hours. Traditional bank business loans UK typically take 2-6 weeks. Government loan for small business schemes like Start Up Loans take 2-4 weeks. Complex applications or larger loans may take longer. Having documents ready speeds up the process.

Common documents for business loans UK include: business bank statements (6-12 months), filed accounts or management accounts, business plan (especially for startup business loans), cash flow forecasts, proof of identity, proof of address, details of existing debts, and information about assets. Business loans startup applications may also require personal credit checks.

Yes, it's possible to get a loan for business with poor credit, though options are more limited and rates higher. Specialist lenders offer bad credit business loans, often secured against assets. Alternative options include invoice finance, merchant cash advances, or peer-to-peer lending. Improving your credit score before applying will give you better small business loan options.

Business interruption loans (CBILS) provided emergency funding up to £5m during COVID-19. This scheme closed in March 2021. For current emergency funding, options include the Recovery Loan Scheme, commercial loans, or speaking with turnaround specialists who can help restructure existing debt and find appropriate business loans UK alternatives.

Our business loan calculators provide accurate estimates based on standard amortization formulas. However, actual loan offers may differ due to arrangement fees, early repayment charges, variable rates, and lender-specific terms. Use our loan calculator business tool to get indicative figures, then request formal quotes from lenders for exact costs when you calculate business loan requirements.

Fixed rate business loans offer predictable monthly payments, making budgeting easier. Variable rate loan for business may start lower but can increase with base rate changes. For stability, especially in uncertain economic times, fixed rates are often preferred for business loans UK. Variable rates suit businesses who can absorb potential increases or plan to repay early.

If you're struggling to repay a business loan, contact your lender immediately to discuss options like payment holidays, extended terms, or reduced payments. For serious difficulties, seek professional advice. Turnaround specialists like K2 Business Partners can help negotiate with creditors on business loans UK and find sustainable solutions before problems escalate.

Most business loans allow early repayment, but many include early repayment charges (ERCs) typically 1-5% of the outstanding balance or 1-3 months' interest. Check your loan for business agreement for specific terms. Early repayment can significantly reduce total interest - use our business loan calculator to see potential savings versus any charges.

Minimum turnover for business loans UK varies by lender. Some alternative lenders accept businesses with £50,000+ annual turnover, while traditional banks often require £100,000+. Startup business loans don't require existing turnover but need a viable business plan. K2 Business Partners typically work with businesses having turnover from £3m-£20m on turnaround finance.

Business loans offer tax-deductible interest, preserve personal savings, and build business credit. However, they add debt obligations. Personal funds avoid interest costs but mix personal and business finances. Consider your risk tolerance, tax position, and growth plans. Many successful businesses use a combination of small business loans and equity investment.

Alternatives to business loans include: invoice finance, asset finance, merchant cash advances, crowdfunding, angel investment, venture capital, trade credit, and government grants. Each suits different situations. If you're struggling to access traditional business loans UK, turnaround specialists can help identify the best option for your circumstances.