£10k Business Loans

If you’re scaling your small business, accessing a £10k business loan could help you get to that next step quickly. You could pay your VAT bill, purchase new equipment or stock up on inventory, or trial-and-error new marketing strategies.

Accessing ten thousand pounds can help you improve your cash flow so you can afford to take those calculated risks to grow your business. Our free comparison tool helps you view eligible £10k loan offers from UK lenders.

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What is a £10k business loan?

A £10k business loan is a form of debt financing where the lender provides you with £10k as a lump sum. You then repay the loan in fixed monthly instalments, including interest over a pre-agreed timeframe. Typically between one and five years.

These loans are usually unsecured, which means you don’t risk an asset in order to get the funds. Based on our 2025 business lending statistics, a £10k business loan is the most common amount that our customers borrowed for the second year running. That’s likely because £10k is classed as a small business loan, so it’s typically more affordable for small businesses to repay, and you’re not stuck in a debt cycle for many years.

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What can I use my £10k business loan for?

Business owners use their £10k loans for various purposes. Here are some examples of how to spend it:

• Cover initial staff training and recruitment costs. Although £10k wouldn’t pay someone’s salary, you can certainly use it to cover the initial cost of recruitment and training costs to get your new staff member up and running.
• Upgrade equipment. Maybe you need some new laptops or kitchen equipment. Your £10k loan could go a long way for items like these.
• Buy inventory. Let’s say you’re approaching a busy period, you can use your loan to stock up on inventory so you start the season strong, maximising your potential revenue.
• Marketing and advertising. Dabbling in different marketing channels and strategies can be costly. But a loan gives you that freedom to trial new ideas and see if you can tap into a new audience.
• Bridging financial gaps. If you’re waiting for customer payment and you’ve shelled out for raw materials to complete the project, you might need a loan to plug that financial gap until you receive payment.

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Types of £10k business loans

There are different types of loans you can apply for. Here are some to consider:

Unsecured business loans

For a lower loan amount like £10k, lenders usually lend without collateral, which means it's an unsecured business loan. Lenders might want you to sign a personal guarantee, though. But these don’t affect your business assets.

Secured business loans

If you have bad credit, you might want to consider a secured business loan. This means the lender won’t be as concerned about your creditworthiness, because they can seize and sell your asset to recoup their investment if you don’t pay. Make sure a secured loan makes financial sense, though, consider all fees and whether it’s a good choice.

Merchant cash advances

If you take card payments and your turnover is around £2,500 per month, you could be eligible for a merchant cash advance. These advances are much more flexible than an unsecured loan. You get the funds upfront, but you repay based on a percentage of your monthly card sales. This is a good option for seasonal businesses.

Startup loans

If you have less than 36 months of trading history, you might be eligible for a startup business loan. It can be a struggle for new businesses to access traditional finance, but a startup loan through an alternative lender means you can start investing in your business straight away.

Business lines of credit

If you’d rather dip in and out of the funds when you need them and only pay interest on the funds you use, you can access a line of credit. It’s a bit like a credit card in that you repay and can reuse it again (if you have a revolving credit facility).

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How to get a £10k business loan

With an alternative lender, your loan application is much faster than the traditional process. You can apply for a business loan online through our comparison platform in a matter of minutes.

1. First, check your eligibility

Most lenders follow the same basic criteria, but eligibility does vary, so always check the lender’s specific requirements before applying. Most UK lenders require that you:

• Have a UK-registered business
• Are over the age of 18
• Have a dedicated UK business account

2. Prepare your documents

Having your documents ready to go makes the application process much smoother. Collect 3-6 months of business bank statements, details of what you’re using the funds for, ID documents, i.e. passport or driving license, and your most recent set of accounts.

3. Compare your options

It’s always a good idea to compare what’s out there already to make sure you don’t miss out on a better deal. Our free comparison tool lets you compare eligible lenders in minutes. Through our tool, you can compare total repayable, interest rates, and more.

4. Apply online

If you find an offer you like, simply click through to the lender’s website directly to continue with your application.

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Can I get a £10k business loan with bad credit?

Yes, you can. Lenders are more focused on the current health and turnover of your business, not just your historical credit score. Lenders will likely look at your recent bank statements to see if you can comfortably afford loan repayments, and they might ask you to sign a personal guarantee to lower their risk further.

Read more about our bad credit loans.

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Why choose Capalona?

Finding a loan can be very time-consuming, and running a small business doesn’t leave much spare time to scour the market. Our tool makes finding business finance a doddle.

• We save you time. You only fill out one form to access lots of potential loan options. Our system matches your specific requirements with lenders most likely to approve your application.
• We are transparent. You can compare total repayment, fees, and interest rates upfront before you apply for the loan, so you know what the loan will cost you.
• We’ve helped thousands of UK SMEs. We built our tool for the UK market, so we know what challenges businesses face. We work with a panel of lenders offering flexible finance to help you achieve your business goals.
• Getting a quote won’t affect your credit score. We use a ‘soft search’ to check your eligibility, so it doesn’t leave a mark on your credit report. Lenders will conduct a ‘hard search’ if you choose to proceed with your application.

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£10k business loan FAQs

How long does it take to get the money?

If you apply for an unsecured £10k loan, you can see funds within 24-48 hours after application approval.

Are there restrictions on how I spend the £10k?

Typically, no. Lenders do not monitor how you spend your money, but you must spend it for business purposes.

Can I make early repayments?

Yes, usually. Some lenders might charge an early repayment fee, so it’s worth checking with your specific lender.

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Grow your business with a £10,000 business loan

A £10k loan can give you the funds you need to take advantage of a market opportunity or give your account a much-needed cash injection. We help thousands of UK SMEs access flexible and affordable business finance to grow their businesses.

Let us help you, too!

Compare £10k business loans.