Get help finding the funds to build or expand your business with new
Apply for a business loan to help your start-up or small business get off the ground or realise your potential for growth.
Get help finding the funds to build or expand your business with NWF. For 40 years we’ve worked with entrepreneurs the length and breadth of the UK to find flexible loans to suit the unique opportunities and challenges that come with running a business.
What is a business loan?
A business loan can help you access the funding you need to help your company prosper. There are many different kinds of business loan available, depending on:
- The length of time you want to borrow
- The interest rate you’re offered
- The reason for your borrowing
- You may be offered one of the following types of loan:
Secured. These typically offer lower interest rates than an unsecured loan, and are secured against property, either personal or company owned.
Unsecured. They generally offer higher interest rates but are not typically secured against property.
How does a business loan work?
Most business loans start with the purpose. Lenders will want to know what you plan to spend the money on, how it will impact your business plan, and what the expected results will be.
If you’re successful in applying for a business loan, you’ll typically receive the funds within a week or two. You’ll then repay the loan, including accrued interest, at the agreed rate each month, until the debt is settled.
You may also be able to pay off your loan early, but there could be a charge for doing so. Check the terms of any loan you’re offered to find out more about the cost of early repayment.
Things to consider before you apply for a business loan
Is a business loan right for me?
A loan can help your business take its first steps, turning your creative spark into a successful venture, or help a growing company keep up with demand to realise its potential. Compared to other types of credit, such as personal loans or credit cards, business loans can offer more flexibility.
If you can show a lender your business is brimming with potential, and you can afford to make repayments on a small business loan, you’re already on the right track.
Read our guide to financing a new business to find out more about accessing funds.
Regular income and outgoings
A lender will ask about your income and regular outgoings to help them assess your personal circumstances. This helps them decide whether you’re a suitable applicant.
Your credit history
Business loan purpose
How you plan to spend the money you’re applying to borrow is an important part of your start up business loan application. Lenders will be keen to see proposals, pitches and plans for your investment so they’ll get a better understanding of your company and how the money will help your business grow.
Applying for a business loan
Our dedicated Commercial and Business Loan specialists are here to help you navigate the application process, compare rates and work out how to get a loan to meet your needs. You can use our business loan calculator to decide the amount and work out repayment rates.
What kinds of businesses are eligible for a business loan?
We help companies across a wide range of sectors secure the financial support they’re looking for. Here are just a few examples:
Outstanding balances can be paid off at any point during your agreement. However, it’s worth bearing in mind that some lenders will charge an Early Repayment Fee if you decide to repay early.Doctors, dentists and healthcare professionals might use a business loan to grow their customer base. This could be by investing in CRM (Customer Relationship Management) software to manage patient files more effectively, or market research to track feedback, improve customer service and increase the level of interaction with patients.
Whatever the aim, a loan could help your healthcare business build a greater reputation, attract more patients and ultimately become more profitable.
Retail and freelance
The UK has a burgeoning population of self-starters and small retailers, who are increasingly harnessing the power of digital media to market their goods and services. A business loan could help fund professional digital marketing and social media management to keep you one step ahead of the competition.
Catering and hospitality
With the help of business loan, restaurants, cafes and hotels could transform their services from shabby to chic, improving their appeal. You could use the loan to invest in advertising to get your business’ voice heard or improve accommodation and facilities.
What can I use a business loan for?
There are many ways you might want to use a business loan – whether starting from scratch as a sole trader, to expanding your payroll.
Taking on new staff
Pick up some people power to expand your company.
Opening new premises
If you have outgrown your office space or your workplace is in desperate need of a refurb.
Expanding your vehicle fleet
If you need new wheels for your business, a loan could help you get things moving.
Buying new equipment
Invest in the latest technology to help your company run more efficiently.