What is a small business loan and how does it work?

A small business loan is a commercial borrowing product designed to provide working capital, purchase equipment, refinance existing debt, or fund expansion. In the UK this can be unsecured lending, secured loans, asset finance, invoice finance and other tailored facilities. Typical loan sizes we help source start at around £10,000 and go up to several million, depending on the provider and purpose.

Important: Fast Business Loans is an introducer — we do not lend money or give regulated financial advice. When you submit an enquiry we use the information you provide to match you with lenders or brokers who can discuss specific products, costs and eligibility.

• Unsecured business loans — no asset security required; typically for smaller sums.
• Secured loans & asset finance — backed by property, equipment or other business assets.
• Invoice finance & merchant cash advances — unlock cash tied up in invoices or card takings.
• Refinance and consolidation — restructure to improve monthly cash flow.

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When a small business loan makes sense

Borrowing can be a powerful tool when used responsibly. A small business loan may be appropriate when you need to:

Manage cash flow & day-to-day costs

Short-term funding can smooth payroll, supplier payments or seasonal dips in revenue.

Invest in growth & equipment

Loans or asset finance let you acquire machinery, vehicles or IT that help increase capacity and revenue.

Bridge seasonal or project-based gaps

Project funding or invoice finance can help bridge payment cycles without sacrificing opportunities.

Good to know: Always consider affordability, total cost (interest and fees) and realistic repayment plans before borrowing. If you’re unsure whether you’ll qualify, our quick enquiry lets partners assess suitability and outline possible routes.

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Why use Fast Business Loans to find the right lender?

Searching for finance can be time-consuming and confusing. We simplify the process by matching your business to lenders and brokers most likely to provide the facility you need.

Our matching platform

• Free to use — no charge for submitting an enquiry.
• Time saving — one short form connects you to multiple suitable partners.
• Sector expertise — we match you to partners who understand your industry.
• Privacy-focused — we only share details with selected partners able to help.

Clear, transparent process

We aim to be fair, clear and not misleading. Submitting an enquiry is not a formal application and does not affect your credit score. Lenders or brokers will contact you directly to request supporting documents and run any credit checks only if you choose to proceed with them.

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Step-by-step: How our small business loan matching works

1. Complete a short enquiry form — tell us about your business, funding need and contact details. It takes around 2 minutes.
2. We match you — we forward your enquiry to a small number of lenders/brokers best suited to your needs.
3. Rapid response — partners typically contact you within hours to discuss options and next steps.
4. Compare offers — review proposals with each provider and choose whether to progress to formal application.

Most introductions happen quickly; how long funding takes depends on the lender, the product, and how promptly required documents are provided.

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What lenders typically look for

Each lender or broker has its own criteria, but common considerations include:

Key eligibility criteria

• Business type and legal structure (limited companies and SMEs are accepted).
• Annual turnover and profitability — lenders vary on minimum turnover requirements.
• Trading history — many lenders prefer at least 12 months trading, some specialise in newer businesses.
• Credit profile — business and sometimes director credit checks; this is assessed later by providers.
• Security or guarantees — required for some secured facilities or larger loans.

Documents usually requested

• Recent business bank statements (typically 3–6 months).
• Management accounts or statutory accounts.
• Cashflow forecasts or budgets for growth funding.
• Details of assets, invoices, or contracts (for asset or invoice finance).

Remember: the enquiry you submit via Fast Business Loans is light-touch. If our partners believe your business is a match, they will advise the exact documentation needed.

Unsure if you’ll qualify? Request a free eligibility check.

Popular small business loan options we can introduce

Unsecured business loans

Quick to arrange for established businesses, suitable for working capital or short-term needs. Typical loan sizes: £10,000–£250,000. Pros: speed and no asset security; Cons: higher rates for unsecured lending.

Secured loans & asset-based lending

Loans secured against property, stock or equipment. Ideal for larger amounts and lower rates where security is available. Typical loan sizes: from £25,000 upwards.

Invoice finance & merchant cash advances

Invoice discounting or factoring unlocks cash tied in unpaid invoices; merchant cash advances use future card takings. Useful for businesses with lengthy payment terms or seasonal sales.

Equipment & vehicle finance

Hire purchase, leasing or asset refinance to fund machinery, vehicles, or specialist equipment — structured to match the asset’s useful life.

Compliance reminder: all lending decisions and terms are set by the provider. Rates, charges and security requirements vary and will be explained to you by lenders or brokers before you proceed.

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Real-world scenarios we support

Here are examples of common situations where our introductions help:

• Retailer smoothing seasonal cash flow — invoice finance or short-term working capital to buy stock for peak seasons.
• Construction firm buying equipment — asset finance or secured loan for plant and vehicles.
• Manufacturer upgrading machinery — equipment finance with staged repayments tied to revenue growth.
• Hospitality business refurbishing premises — commercial loan or fit-out finance to improve trading space.

We work with partners experienced across many sectors. For more sector-specific loans, see our industry guidance on small business loans.

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What to expect after you apply

After you submit your enquiry:

1. A matched lender or broker will contact you (usually by phone or email) to discuss options.
2. They may request documents to complete an assessment; this is when soft or hard credit checks may be run by the lender.
3. If an offer is made, you’ll receive full terms, fees and repayment details to compare.
4. You decide whether to proceed — there’s no obligation to accept any offer.

Good to know: an initial enquiry via Fast Business Loans does not affect your credit score. Lenders perform credit searches only as part of their formal decision process.

Frequently asked questions about small business loans

Is my business too small to apply?

We typically introduce limited companies and SMEs. Many partners specialise in smaller turnovers and start-ups; loan minimums usually start from around £10,000.

Will an enquiry affect my credit score?

No — submitting our enquiry does not impact your credit rating. Lenders may carry out credit checks later if you choose to proceed with an application.

How fast can funding be arranged?

Responses from lenders/brokers often arrive within hours during business hours; funding speed depends on the product and documentation required. Some facilities can be completed in days, others take weeks.

Do I need to provide security or personal guarantees?

Some facilities require security or director guarantees — this varies by lender, loan size and risk profile. Lenders will clearly explain any requirements before you agree.

Can you help if I’ve been declined elsewhere?

Yes. Because we work with a broad panel, different providers have different risk appetites; you may be eligible with another lender or a specialist broker.

How much does it cost to use Fast Business Loans?

Our matching service is free for business owners. Any fees, interest or broker charges will be disclosed by the lender or broker before you accept an offer.

If you still have questions, Get Started – Free Eligibility Check and a partner will be in touch to advise.

Ready to explore your options?

If your business needs finance of £10,000 or more, we can help you reach lenders and brokers who understand your sector and needs. Our free, no‑obligation enquiry is a quick way to see what’s possible.

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Fast Business Loans acts as an introducer only. We do not provide loans or regulated financial advice. All finance is subject to status and terms from lending partners. Completing our enquiry form does not guarantee funding.