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Business Loans Guide

Compare Business Loans

A guide to helping you understand and compare business loans online

Compare business loans

When you compare business loans, you get the best possible view of what’s out there for you. You get to look at each individual business loan from all angles and compare loans across a range of different criteria. Comparing business loans is simple but effective and allows you to secure the best source of funding for your business.

The first step when comparing business loans is to decide how much you want to borrow and for how long. Loan comparison will assess the best deal for you by taking a number of factors into consideration. This includes; the purpose of your loan, loan amount, term, business loan rates, the annual percentage rate (APR) and additional fees.

When you compare business loans, you will get a range of choice from many different kinds of lenders. You get to see what types of loans are being offered by banks, online lenders, peer-to-peer lenders and other sources of funding, such as small investment groups or crowdfunding groups.

By comparing business loans, you’ll be able to see which ones offer you the most capital, without burdening you with extra charges or uncompetitive interest rates. Remember the longer you pay the loan back, the more you’ll eventually end up paying so it’s important to compare business loans based on length as well as interest rates.

Comparing business loans: Putting you in the funding fast lane

Do something you love, and you’ll never work a day in your life. That’s how that well-worn saying goes when people are being encouraged to follow their dreams by well-meaning friends and family. Setting up your own business may be a way to follow those dreams, indulge your passion or simply to make money, but whatever it is, it is also hard work.

If you are someone who is thinking about taking the plunge or is already swimming in the choppy waters of running your business, you’ll know that keeping your head above water can be quite challenging. Everyone needs a helping hand and to stay afloat, you may be considering taking out a business loan.


Why take out a business loan?

Unless you have a wealthy benefactor, or your numbers finally come up in the lottery, not many people will have the sufficient capital just lying round to start off a new business from scratch. Similarly, if you are already up and running and have been trading for quite some time and are doing well, you may be looking to expand. However, most of your capital may be tied up in the business and eating into hard-earned profits to fund your expansion may not be an option.

Small business loans are designed to help people invest in the future of their company and the best way to get your hands on the funding you need is to compare business loans from a range of different providers.

Whether you’re looking for a startup business loan to get things off the ground or growing your existing operation, borrowing is a useful way of spreading the cost of that investment. If you borrow and budget sensibly and compare business loans, then the monthly cost of a business loan can be easily absorbed into your company’s outgoings and the money you have borrowed can be put to good use, growing and expanding your business.

Who can I borrow from?

Businesses these days are diverse. From a small artisan coffee shops to large nationwide haulage companies, no two business are the same and each has their own unique needs.

Lending has also become much more diverse and the tradition of scheduling that awkward meeting with the bank manager on a wet Wednesday afternoon in your local high street bank to put forward your case for a business loan is quickly fading.

Banks are still a huge a source of funding when it comes to business loans, but they have been joined in an every-growing market by other lenders, so there is an ever-growing number of providers to compare business loans with.

By the very nature of their name, challenger banks are nipping at the heels of the big banks, while online lenders are getting in on the game too and other alternative sources of funding have sprung up as well. From peer-to-peer lending, to crowdfunded investments, there is an ever-growing list of options for business owner to avail of when it comes to seeking out business loans.

The great advantage of this when come to comparing business loans is that lenders have become more competitive, so you are much more likely to find an interest rate or repayment plan which suits your needs and helps keep your borrowing costs to a minimum.

What does a lender need from me?

A crowded and competitive market may mean an abundance of great deals for borrowers, but lenders must also make sure they are lending to the right people and that you can repay the loan.

When you are comparing business loans, you will therefore need to provide the lender with as much information as you can about your business, no matter how small it is.

A lender will want to know how long you have been trading for and what your annual turnover is. However, they won’t just take your word for it, they will need to see filed accounts and may even request additional information from Companies House.

You will also need to tell the lender what you intend using the money for and how you long you feel it will take you to pay it back.

Lenders will also check your business credit score to work out kind risk they are taking on by lending money to you.

Why should I compare business loans?

As a business owner, you’ll know how much effort goes into attracting customers. You’ll probably be aware that many of your customers may check around a few different businesses before settling on you. Well done, you’ve obviously cut them a good deal or have offered something that your competitors can’t.

When you compare business loans, you should put yourself in the position of the customer. You’re not going to grab the first one you see. You’ll want to shop around to find out which one offers the best deal, and which also fits your specific needs.

When comparing business loans, there are a number of factors you need to consider. These include:

Interest Rates

This is how much interest you will pay on the amount you borrow. The higher the interest rate, the more your monthly repayment rates will be. It is essential that you compare interest rates based on your specific situation because while lenders may advertise a low headline-grabbing rate, you may find that you are not eligible for that rate based on your circumstances. We compare to find you the best business loan rates.

Length of Repayment

This is how many months you will take to pay off the loan. Paying off a loan over a longer period will mean you are paying less out every month, but it also means that interest is being applied over a longer period of time and, as such, the final amount you pay will be higher.

Secured v Unsecured

A secured business loan may sound safe, but it is actually a riskier option. A lender will ask you to secure the loan against some assets belonging to your company. That could be commercial property, machinery, vehicles or stock. If you don’t keep up with the repayments, the lender may seize these assets or demand the proceeds of their sale go towards repayment of the loan.

An unsecured business loan means you don’t have to put something up as collateral, but as a business owner, you may be asked to sign a personal guarantee to say you will be able to repay the loan.

Due to the level of risk involved, you can borrow a lot more on a secured loan and will generally get a lower rate of interest. A secured loan can also be paid back over a longer time period than an unsecured loan.

Unsecured loans tend to offer a reduced amount of capital and higher interest rates, but that allows the borrower to pay back over a shorter period of time, which will eventually reduce your monthly outgoings.


You may find the loan that’s right for you, but due to your circumstances it may prove out of reach. When you compare business loans online, you’ll be able to filter out the ones you don’t qualify for, so you won’t be wasting your time chasing a lost cause and can instead compare loans which suit you best.

Other fees and costs

When you compare business loans, interest rates and repayment periods may be eye-catching, but it is important to look carefully at the other costs involved. For example, some lenders may charge set-up fees and you may also have to stump up an extra fee if you pay off the loan early.

Think of comparing business loans as having your own financial sat-nav. Instead of battling with a huge map or driving around for hours looking for your destination, our business loans comparison gets you to where you want to go in the shortest time possible.

Comparing loans based on your specific needs means you are not wasting time wading through loans that aren’t right for you. Then, when you have bagged the loan deal that suits you, your business can really start motoring. Us our Finance Finder to compare business loans today.


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