Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Avg. Monthly Interest
Length of loan
Total Cost of Loan
Most growing companies require funding at some stage or another. Business loans can enable you to boost your business’ working capital, invest in more stock, hire staff, open new premises – you name it, there’s probably a type of business finance for it.
With so many business loan options out there, it’s important to choose the right one for you. When researching, one of the first steps is to figure out if you can actually afford the loan. Remember: you’ll have to pay interest on top of the amount you borrow.
Keep in mind that Funding Options’ business loan calculator is for indicative use only, for loans where you repay the same amount every month and there's a set end date. But every business is different, and the individual terms for each loan or finance product vary.
Business term loans are a popular type of business finance. However, there are also other types of lending within business finance that our calculator can't tell you about, for example:
- Loans repaid as a percentage of revenue
- Overdraft alternatives
- Asset finance like equipment leasing
- Rolling facilities like invoice finance
A loan’s “term” is the length of time it takes for the borrower to pay it back (plus interest) in monthly repayment instalments. Business loans can be short-term or long-term; it all depends on the loan amount, lender and type of loan.
Invoice finance terms, for example, can be between one to three months. Short-term business loan terms can range from three to 18 months and asset finance terms can be for one up to five years. Business lines of credit are typically for six months up to five years.
The interest rate on your loan is a percentage of its balance. You’ll have to pay the interest on top of the original amount you borrow, which is known as the “capital” or “principal”. The interest is the main cost associated with borrowing.
Interest rates vary. The percentage you pay depends on the term of the loan and other factors, such as the strength of your credit profile. Even if your credit history isn't perfect, you could still be eligible for a business loan from an alternative lender.
Every lender and finance product has its own eligibility criteria that you’ll have to meet to be able to take out the loan. When deciding how to much to lend to your business, and how much interest to charge, the lender will consider your:
Profit and turnover
Business and personal credit history
The loan’s term (length)
Loans that are secured will require you to offer security in the form of a business asset, e.g. property, a vehicle or machinery. Some unsecured loans require a personal guarantee, whereas others, such as some merchant cash advances, don’t require any kind of security.
When offering a property, vehicle or machinery as security, bear in mind that you may lose it if you fail to keep up with your repayments.
To help speed the application process along, it helps to have the relevant documents ready. The paperwork you need will depend on the lender; for example, some will ask for your business plan or insurance documents, whereas others won’t.
As a starting point, prepare the following:
Proof of ID and address - These will provide the lender with a clear insight into your company’s finances for that financial year.
Business bank statements - The lender will look at your business bank statements to verify your company’s income and outgoings.
Financial accounts - These will provide the lender with a clear insight into your company’s finances for that financial year.
VAT returns - You may also be asked to provide your VAT returns, which are typically updated every three months.
Company directors and financiers - You’ll be expected to provide details of your company’s directors and financiers in your application.
We break down funding barriers with a simple application process that empowers you. Our technology, Funding Cloud, accurately validates your business profile, matching you to the industry’s largest lender network. Funding results are uniquely tailored to each and every business.
Tell us how much you need to borrow, what it's for and provide some basic information about your business.
Our smart technology will compare up to 120+ lenders and match you with the right finance options for your needs.
We'll help you through the process from application to receiving your funds.
Disclaimer: Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. We are also able to make insurance introductions. Funding Options may receive a commission or finder’s fee for effecting such finance and insurance introductions.
*Eligibility criteria apply - see Tide website for full details.
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