Business Loan Rates UK: Indicative Costs by Product
In short: As an indicative market guide: unsecured business loans run ~6% to 25%+ APR, secured loans and commercial mortgages ~6% to 12%, asset finance ~5% to 15% APR, bridging ~0.55% to 1.5% per month, and invoice finance a service fee plus ~1.5% to 4% over base. Your actual rate depends on trading, security and term.
There is no single business loan rate; the cost depends on the product, the risk and the security. Lenders price on your trading history, turnover, credit profile, the term, and whether the facility is secured.
As an indicative market guide (ranges, not quotes):
- Unsecured business loans: ~6% to 25%+ APR - Secured business loans and commercial mortgages: ~6% to 12% - Asset finance: ~5% to 15% APR - Bridging finance: ~0.55% to 1.5% per month - Invoice finance: a service fee (~0.5% to 3% of turnover) plus a discount margin around 1.5% to 4% over base - Merchant cash advance: priced as a factor rate (commonly 1.1 to 1.5), not an APR
These reflect the wider market, not any one lender. The way to know your real number is a matched quote: CoreFi packages your case and approaches the lenders most likely to price it well, so you compare genuine offers rather than headline rates.
Key Benefits
- Stronger trading and turnover lower your rate
- Security (property or assets) unlocks cheaper pricing
- A clean credit profile widens lender choice
- Shorter terms usually price better than long ones
- The right lender match beats haggling one rate
Frequently Asked Questions
What is a typical business loan interest rate?
It varies widely by product and risk. Unsecured loans commonly sit around 6% to 25%+ APR, while secured lending against property or assets can be 6% to 12%. The only reliable figure is a quote matched to your business.
What affects the rate I am offered?
Your trading history and turnover, credit profile, the term, the amount, whether the facility is secured, and the product itself. Stronger businesses with security get the lowest rates.
Are secured loans cheaper than unsecured?
Usually, yes. Security reduces the lender's risk, so secured loans and asset-backed facilities tend to price below unsecured lending, in exchange for charging an asset.
How do I get the best rate?
Present clean accounts and bank statements, offer security if you can, and let a broker match you to the lenders that price your profile best, so you compare real offers rather than advertised rates.
Related Funding Options
Business Loans UK
Business loans for UK companies from £5k to £500k+. Unsecured and secured options, funded in days to a couple of weeks. Whole-of-market broker, no fee to search.
Cheapest Bridging Finance UK: What Drives the Rate
What makes bridging finance cheap, and how to get the best rate. Indicative market rates from around 0.55% per month for low-risk cases. Whole-of-market broker, free to search.
Asset Finance UK
Spread the cost of business equipment, machinery, and vehicles. Hire purchase, finance lease, and operating lease options for UK businesses.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.