Commercial Finance
Looking to scale your small business? Our lenders offer various commercial loan products to help you grow quickly.
- Compare a wide range of lenders and rates
- Check your eligibility in minutes
- Find out how much you could borrow
It's fast, free and won't affect your credit score
What is commercial finance?
Commercial finance is an umbrella term used to describe loan products specifically designed for businesses. Commercial loans can be unsecured or secured, you can access between £1,000 and £2 million plus, and you can find finance to suit your specific business needs, i.e. to purchase equipment or renovate your commercial property.
Commercial finance options for all businesses
Commercial finance is a much more competitive marketplace than it used to be, which means funding is much more accessible for all types of businesses, even small businesses and startups. You no longer have to worry about aligning with stringent bank loan criteria. Instead, the alternative finance providers we work alongside look at loan applications on a case-by-case basis, so even if you have bad credit, chances are, they’ll be lenders out there willing to lend to you, helping grow your business.
Types of commercial finance
So, what kinds of commercial loans are available? Here are several options to consider:
Unsecured commercial loans
You can apply for unsecured commercial loans up to £500,000 with our lenders, with funds available in just a matter of hours after application. These loans can be used how you see fit — renovate your commercial premises, hire staff, pay bills, run marketing campaigns. These loans are given as a lump sum, which you repay in monthly instalments.
Commercial bridging finance
Bridging finance is perfect for bridging the gap between buying and selling property (instead of waiting for a mortgage). This type of financing is ideal for auction property purchases, where the purchase must be completed within 28 days. Typically repayable within 12 months, you can apply for commercial bridging finance through Capalona.
Invoice finance
Invoice finance helps you keep cash flowing in your business by fronting you the money tied up in unpaid invoices. You can sell one or multiple invoices to the lender, releasing funds almost immediately through the online platform. This financing provides businesses with cash flow predictability, giving you the opportunity to invest in your business instead of waiting around for funds to come in. You can choose to keep the finance provider a secret and chase invoice payments yourself (invoice discounting) or let them handle your credit control for you (invoice factoring).
Merchant cash advance
If your business takes card payments and takes at least £2,500 in card sales each month, you might be able to apply for a merchant cash advance. Unlike typical loan products, a cash advance is a type of revenue-based financing, so you automatically repay the cash advance as a percentage of your sales each month. Which is perfect for seasonal businesses.
Commercial vehicle loan
You can apply for a vehicle loan to purchase commercial commuter vehicles, delivery vehicles, or a fleet of vans — whatever your commercial automotive needs, you can use your vehicle loan to invest in what you need. From contract hire to hire purchase, there are plenty of vehicle financing options, making it more affordable for you to quickly scale your business.
Commercial mortgage
Buying business premises, i.e. a warehouse, a new retail store or an office block, gives you control over your operational base, instead of being at the mercy of a landlord introducing price hikes. For this kind of purchase, you might want to consider a commercial property loan. A commercial mortgage works similarly to a standard residential mortgage; you put a deposit down (usually at least 25%) and you repay the loan over a pre-agreed timeframe with monthly instalments.
Commercial loan interest rates
Interest rates for commercial loans vary significantly depending on the type of loan you apply for and your personal circumstances. For example, if you apply for secured commercial finance, you can expect lower interest rates than if you applied for an unsecured loan, which can vary between 6% and 15%. The more risky you are as a borrower, the higher your interest rate.
Some products have higher interest rates, too. Commercial bridging finance is a high-interest product, because it’s built for short-term use and interest is typically charged monthly, i.e. the longer you take to repay the loan, the more expensive it becomes.
How to get the best rates for a commercial loan
The best way to find the most competitive commercial loan rates is to use a free business loan comparison tool to compare lots of options in one place, instead of scouring the internet for multiple lenders.
Another way to access favourable rates is to improve your credit score. That means paying invoices and loan repayments on time and consolidating your debt into one monthly repayment so you’re less likely to miss a payment.
Am I eligible for commercial finance?
Eligibility will depend on the lender’s criteria for each loan product. But, typically, if you meet the following requirements, you will likely qualify for commercial funding.
- Have been trading for at least three months
- Business is registered in the UK (limited company, sole trader or partnership)
- Good credit history
- Over the age of 18
- Not bankrupt
- Have a UK bank account
How to apply for a commercial loan
- First, work out what you need — how much do you need to borrow and what do you need it for? This can help you narrow down your options.
- Before applying for a loan, make sure you can comfortably afford the repayments. All our lenders lend responsibly, but it’s always a good idea to understand rough loan repayments to weigh up affordability — for this, you can use our free business loan calculator.
- Once you know what you can afford, you can use our comparison tool to search and compare eligible loan products online. If you find one you like, you can click through to continue your application on the lender’s website.
Find and compare commercial finance for free here. P.S. You’re under no obligation to accept any quotes, and getting a quote won’t affect your credit score.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
FAQs
0330 223 5036