Best Small Business Loan UK 2024: According to government statistics, there are about 5.6 million small businesses in the United Kingdom (UK). But small businesses have many challenges. Among them, the main challenge is accessing finance to fund expansion.
Start-up business grants UK
Generally, when starting a business, the business plan should have sufficient cash reserves for financing. If it is not there then the businessman should take a loan for his small business. Then a small business loan can fill the gap of insufficient cash reserves.
Best small business loan uk for startups
Today I will share some important information with you. The British Business Bank has published a recent report. The report shows the total lending of banks to small and medium business enterprises by last year i.e. 2023 Exceeds £59 billion.
The data was extracted by the British Business Bank using Bank of England data.
What is the best loan for a small business?
We did some research in June 2024. Where we find and uncover the best small business loans. And we have shared the results with you below. The annual percentage rate (APR) listed below is representative. This means depending on your current situation which loan you take or how many years you take for the term.
You’ll find representative APR, loan amounts, and loan terms below. From this, you will get an idea of which loan is suitable for you.
Easy loans for startup business
British Business Bank: Start-Up Loan
- Representative APR – 6%
- Loan Sizes- £500-£25,000
- Repayment period – from 1 to 5 years.
Example: You can borrow £10,000. Monthly repayments of £193. And it will continue for 60 months. This will be the total amount payable £11,555. Also Rep. 6% APR, Annual Interest Rate (fixed) 6%, PA Credit subject to availability.
HSBC business loan
HSBC: Best Small Business Loan
- Representative APR – 8.6% (over $10,000, 11.3%)
- Loan Size- £1000- £25,000
- Repayment period – from 1 to 10 years.
Example: You can borrow £10,000 and repay the loan at £216 per month for 60 months. The total amount payable will be £12,972. With that Representative 11.3% APR, Annual Interest Rate (fixed) 11.3% PA Credit subject to availability conditions.
Metro Bank: Best Small Business Loan
- Representative APR – 9.6%
- Loan Size- £2000-£60,000
- Repayment period – from 1 to 5 years.
Example: You can borrow £10,000 and repay the loan at £209 per month for up to 60 months. The total amount payable will be £12,514. Also representative of 9.6% APR, annual interest rate (fixed) of 9.6% p.a. credit subject to availability.
Small business loan rates uk
Lloyds: Best Small Business Loan
- Representative APR -11.6%
- Loan Size- £1000- £25,000
- Repayment period – from 1 to 25 years.
Example: You can borrow £10,000 and repay the loan at £218 per month for 60 months. The total amount payable will be £13,107. Also representative is 11.6% APR, Annual Interest Rate (fixed) 11.6% PA credit subject to availability.
RBS/NatWest/Ulster Bank: Best Small Business Loan
- Representative APR -11.7%
- Loan Size- £1000-£50,000
- Repayment period – from 1 to 7 years. (Up to 10 years on request)
Example: You can borrow £10,000 and repay the loan at £218 per month for 60 months. The total amount payable will be £13,080. As well as representative 11.7% APR, Annual Interest Rate (fixed) 11.7% PA credit subject to availability.
What is a small business loan?
Generally, a small business loan is a cash loan that helps a businessman cover all of his business expenses and provides a way to access money to expand his business. As you may know, small business loans are for a fixed term. During this time you repay both principal and interest.
Usually, the interest rate stays the same, but it can change. Small business loans are unsecured by your home or personal guarantee. Which can be protected by any of your assets.
Where can I get a small business loan?
If you are considering taking out a small loan for your business. So it is advisable to compare all the options to find the best rates and terms for your particular situation.
Get Started Now!
If you’re in business for a short period or a specific period, check out our best loans for Start-up businesses.
Source: www.forbes.com
