What is a Business Loan?

March 5, 2024
Jamie Blow

A Business Loan is a form of Commercial Funding that allows for an injection of cash into your business. By definition, a loan is “a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.”. A business loan follows this definition. A sum of money will be lent to you, for you to pay back over an agreed period of time, plus an agreed interest figure.

There are plenty of providers for Business Loans, each with their own specified criteria. For example one of our lenders may only lend up to £50,000, and others will lend up to £5,000,000. No matter the situation of your business, there is a lender for you.

Benefits of Business Loans

Business loans primarily boost your working capital, and cashflow. They can help you cross the line in a difficult period, keeping your business thriving. This can be on a short, or long term period, allowing the product to be tailored to you. This can be used for any business expense, such as expansion, recruitment, working capital or debt consolidation. 

Loans are available for start-ups, allowing for a vital foundation of money to be put in place. This can be used for any business use, which can be extremely beneficial for those starting their venture. 

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Lenders

We have a wide range in our panel. Within the 250+ lenders we work with, we have multiple different forms of banks, such as high-street banks, challenger banks, and peer-to-peer lending. These allow for the product you opt for to be tailored to you, and your business in the ways you want. The products offered also vary between lenders, allowing for flexible repayment terms to be discussed.

Who can apply for a business loan?

Anyone can apply for a business loan as long as you have a limited company, or a partnership. No matter how big or small, you can apply for a loan, although your loan amount will depend on the size of your business. It will also depend on the strength of your business profile, such as your turnover, your profit and loss,, and your balance sheets. Most lenders have a minimum turnover, as well as a minimum trading history. This is displayed on your annual accounts, which will need to be filed in order to get a business loan, unless you are a new start-up.

Jamie Davies
Managing Director

As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients. 

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Disclaimer: Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders.  Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).
© Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Their reference number is 958123, and you can use that to find them on the FCA register.