Business Loan Calculator UK

Business Loan Options in the UK

UK businesses can access various forms of loan finance: unsecured business loans (typically up to £500k, no security required), secured loans (against business or personal assets, usually larger amounts), government-backed schemes (e.g. Growth Guarantee Scheme), and alternative lenders.

Typical Business Loan Rates

Business loan interest rates in the UK typically range from 4-6% for well-established businesses with good credit to 10-20%+ for newer businesses or higher-risk sectors. The base rate set by the Bank of England influences commercial lending rates significantly.

Tax Deductibility

Interest on business loans is generally tax-deductible as a business expense. This reduces the effective cost: at 19% corporation tax (small companies rate), a £10,000 interest cost reduces your tax bill by £1,900, making the net cost £8,100.