Small Business Loans

A small business loan is a business funding solution that allows small and medium-sized businesses to borrow money to fund business operations, investments or asset purchases. Business loans can be used as working capital to ease cash flow problems, to finance a small business purchase, to pay off debt or to fund business expansion, for example.

Yes. Just like you can get a payday loan for bad credit, you can also get a business loan for bad credit. At Cashfloat, we want to give every business a fair chance at succeeding. If you need a business startup loan or just a regular business loan, but if you’ve got a low credit score, we’ll still try to help you.

While you can still borrow with a poor credit score, it’s always helpful to keep an eye on your business credit score and find ways to improve it.

Business loan rates in the UK vary from lender to lender and between loan types offered by individual lenders. Factors unique to your business, such as the sector it is in and your credit history, can also affect the interest rates you’re offered.

At Cashfloat, we offer access to the lowest interest business loans. Rates with Cashfloat start at just 2% a month! We’ll lay out all the repayment terms and charges when you apply, so you’ll know exactly how much the loan will cost before you sign any contract.

We’ve partnered up with the best lenders in the UK to get you the best deals and rates.

Interest rates can be either fixed (stable over the term of the loan term) or variable (fluctuating during the loan term).

A business loan calculator could provide you with more clarity on what loan amount and term options will suit you. It could give you a better idea of how much you could borrow, the interest rates charged and the total you’ll have to repay.

People often look for loans that are provided without a credit check or that have guaranteed approval because they’re worried they’ll be rejected because of their credit score. Loans that are advertised like this are not recommended, however. This is because lenders that offer them are often not FCA authorised and may provide loans that come with excessive interest rates and inappropriate repayment terms. These loans can cause financial harm and should be avoided.

If you’re worried about getting declined due to a bad credit score, you can still apply for a business loan with Cashfloat. We accept applicants with a low credit score and will always try to lend to them rather than turn them away.

It’s also a good idea to focus on improving your business credit score. Improving your credit score will help your business the most in the long term. Click here to read more about how to fix your business credit score.

Of course. Women are just as likely to be accepted for Cashfloat business loans as men. We do not ask for or consider your gender when processing loan applications, and it does not affect the outcome of your loan application. As long as you fit the criteria laid out above, you can apply with us. Want to know more about women in business and financing options? You can read small business advice specifically for women here.

Yes. Applying for a business loan with Cashfloat requires no collateral whatsoever! You can borrow between £1,000 and £100,000 through Cashfloat with no collateral.

If, however, you’re looking to take out a very large business loan or your credit score is particularly poor, a lender may require you to secure the loan with collateral. Secured business loans make borrowing possible in these situations and they also come with lower interest rates. However, they’re much riskier because you can lose your assets if you default.

Most business loan lenders will consider your personal credit rating as well as your business’ financial performance before approving you for a loan. Your personal credit rating helps to determine if you can be trusted to pay a loan back.

Yes! The advantage of using a personal loan for business is that your business’ performance will not be checked. This can be useful if you’re starting a new small business or if you don’t want to send sensitive business information to lenders. However, if you default on the loan, it will be your own personal responsibility to repay it, regardless of whether or not the business is still operating.

A working capital loan is a loan that, instead of being used to buy assets or for investments, is used to fund short term business operational needs.

Just like a Cashfloat small business loan, fast working capital loans often reach a business bank account within a day of being approved. Cashfloat small business loans are just as fast as fast working capital loans!