UK Business Loan Calculator

What is a business loan?

A business loan is an amount given to you by a lender to support your business growth or help towards short-term unexpected costs. And where do Approvity fit in? We are a brokerage, so we help liaise and build trust between both parties so that we can find you a loan that works for you. The borrower, in this case, your business, then must pay back the lender’s total amount with interest. 

There are two common types of business loans:

A secured loan 

This loan option uses a pre-arranged asset, such as a property, stock, or shares, to protect you and your business if the loan is unpaid. The security made by these assets provides a reduced risk to the lender, so a more favourable interest rate is used. Therefore, if your budget is tight, it helps create a more affordable loan option. 

An unsecured loan

This loan uses an agreement with the company's director, which states that if the business struggles to repay the loan, the director will be accountable for the debt. The advantage of this option is that no security asset is needed. Therefore, these loans are easier and faster to organise so that the funding can reach your account quickly. 

How does a business loan work?

Both the lender and the borrower decide to agree on a fixed time frame for repaying the business loan, from a couple of months to a few years. Some lenders charge an expense to repay the loan early, but others don’t, so make sure you know the lender's criteria.

Estimating the interest rate of a business loan depends on your personal and/or business credit scores and if you are willing to hold an asset up for security. The lenders will provide your loan with either a fixed rate, where the interest rate is permanent and unable to change through the loan period or a floating rate that fluctuates with the Bank of England’s inflation rates.

The benefits of a business loan

• Taking out a business loan can provide a faster growth strategy for a business. 
• Added capital offers a stable and consistent cash flow which you can control.
• You can invest in more equipment, machinery, stock or purchase new premises.

How do I apply for a business loan? 

Use our business loan calculator to gauge how much funding you can receive. Once you have a figure in mind, ensure you have all the information needed to apply. 

Here is a step-by-step overview of the application process for a business loan:

1. The business applies for a loan through Approvity and provides us with the latest file accounts, six months' bank statements, VAT returns, and property history (if wanting a secured loan).
2. The lender assesses the business's creditworthiness and calculates a monthly, annual or factor rate.
3. The lender approves the loan and provides the business with a lump sum of cash. This is the business loan amount.
4. The business repays the loan through direct debits and standing orders.
5. The business repays the loan in full within the agreed term, usually between three months to ten years.

There are many different business loan providers, each offering slightly different terms and conditions, with some offering more favourable rates. So get in contact today to have the best chance of success. 

Choosing the right provider

Investigate your options with our intelligent lender matching software and innovative approval system - we'll only match you with providers most likely to approve your business.

An intelligent approach to business funding

Whether hiring new staff, paying a supplier, or improving cash flow, Approvity's intelligent tech can match you to the right lender.

• At Approvity, we pre-qualify each business that applies for a business loan and only show your application to lenders with a strong likelihood of approving you. 
• Using Approvity will increase your chances of approval for business finance as we can approach suitable lenders without added stress on your behalf. 
• You can fully control your business and its growth with a business loan. 
• We offer both secured and unsecured loan options.

Intelligent finance with a high approval rate and at low risk

Approvity offers instant finance-matching tech and financial experts who can mentor you every step of the way.

We evaluate the entire market to find matches with a high chance of approving your application.

Real-time tracking and support

No more follow-up emails. Keep up to date and get support with your application online in real time.

Check your eligibility for a business loan

Business loan eligibility typically depends on your current and past business performance. We can match you with a lender likely to accept, even if you have factors affecting your credit score.

To check your business's eligibility, ask our friendly team for advice - call 020 7458 4586.

Are you applying for a business loan?

Our intelligent matching service will pair you with a lender instantly. Our dedicated team can provide excellent support and advice throughout your entire process.

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