How much does a business loan cost? UK rates and fees 2026
On our lender panel in October 2026, unsecured business loans typically start at 11.25% to 21.5% a year, secured loans at…
Business loans
UK business finance rate index: indicative rates by type of finance
Indicative UK business finance rates from our lender panel: loans, asset finance, invoice finance and revolving credit, with amounts, terms and lender counts.
In this guide
Business owners want to know what finance costs before they apply. This index answers that from real data: the rate ranges, amounts and terms published to brokers by the lenders on our panel, the same figures our Instant Quotes tool matches against. The tables are generated from that data each time the site is built, so they move when lenders change their pricing. They are indicative ranges from lenders on our panel, checked October 2026; your rate depends on your circumstances.
The index covers 479 finance products from 123 lenders on our panel. Unsecured business loans start from 6% a year, asset finance from 5.1% and invoice finance from 5.75% a year on the money drawn, but the median starting rate is higher in each case, and the rate a business is offered depends on its own figures.
Indicative rates by type of finance
Each row groups the products on our panel for one type of finance. "Indicative rates" runs from the lowest starting rate any product quotes to the highest rate in any product's range. The median starting rate is the middle of the products' "from" rates, which is a more realistic guide for a typical business than the lowest figure.
| Type of finance | Indicative rates | Amounts | Terms | Panel lenders |
|---|---|---|---|---|
| Unsecured business loans | 6% to 70.8% a year Median starting rate 15% | £10k to £20m | 1 month to 10 years | 46 lenders 141 products, 123 with a published rate |
| Secured business loans | 8.99% to 36% a year Median starting rate 12.05% | £10k to £10m | 1 month to 30 years | 20 lenders 38 products, 35 with a published rate |
| Property-backed revolving credit | 9.9% to 24% a year Median starting rate 13.2% | £10k to £10m | 1 month to 30 years | 8 lenders 20 products, 19 with a published rate |
| Asset finance (hire purchase and leasing) | 5.1% to 33.6% a year Median starting rate 10% | £10k to £20m | 1 month to 10 years | 40 lenders 114 products, 110 with a published rate |
| Asset refinance and sale and leaseback | 5.1% to 20% a year Median starting rate 10.32% | £10k to £20m | 1 month to 7 years | 25 lenders 52 products, 46 with a published rate |
| Invoice finance (factoring and discounting) | 5.75% to 19% a year on what you draw Median starting rate 6.95% | £10k to £20m | Ongoing facility | 26 lenders 48 products, 36 with a published rate |
| Asset based lending | 9.25% to 11.5% a year Median starting rate 9.25% | £1m to £20m | Ongoing facility | 2 lenders 2 products, 1 with a published rate |
| Revolving credit facilities | 12% to 59.88% a year Median starting rate 27% | £10k to £20m | 1 month to 5 years | 11 lenders 13 products, 9 with a published rate |
| VAT and tax loans | 8.9% to 36% a year Median starting rate 15.48% | £10k to £2m | 1 month to 5 years | 10 lenders 32 products, 20 with a published rate |
| Trade and supplier finance | 15.96% to 36% a year Median starting rate 24% | £25k to £1m | 1 month to 1 year | 5 lenders 5 products, 3 with a published rate |
| Revenue-based finance | 11.5% to 20% a year Median starting rate 11.5% | £10k to £2m | 1 month to 18 months | 4 lenders 4 products, 1 with a published rate |
| Merchant cash advances | Factor 1.15 to 1.60 Median starting factor 1.22 | £10k to £750k | 1 month to 1 year | 7 lenders 8 products, 8 with a published rate |
Amounts are shown within the range we arrange, from £10,000 to £20 million, rather than each lender's own outer limits. Merchant cash advances are priced with a factor rate rather than an annual rate: a factor of 1.20 means £1.20 is repaid for every £1 advanced. Invoice finance rates apply to the money you draw and sit on top of a service fee.
Unsecured business loan rates by loan size
Larger unsecured loans tend to start at lower rates, because the lenders offering them lend to larger, established businesses. This table shows the lowest and median starting rates of the unsecured loan products that cover each size band.
| Unsecured loan size | Lowest starting rate | Median starting rate | Panel lenders |
|---|---|---|---|
| £10,000 to £49,999 | 6.9% | 18% | 29 |
| £50,000 to £249,999 | 6% | 15% | 36 |
| £250,000 to £999,999 | 6% | 12% | 22 |
| £1 million and over | 6% | 10.25% | 8 |
Lowest published starting rates on our panel
The lowest "from" rate each lender publishes for the main types of finance, three lenders per type. A "from" rate goes to the strongest applicants; your offer depends on the lender's assessment.
| Type of finance | Lowest published starting rates on our panel |
|---|---|
| Unsecured business loans | Uncapped: from 6% (£75k to £2m) OakNorth Bank: from 6.75% (£1m to £20m) Momenta Finance: from 6.88% (£50k to £500k) |
| Secured business loans | Charles Street Finance: from 8.99% (£50k to £10m) Together Loans: from 10.04% (£30k to £4.5m) Mercantile Trust: from 10.84% (£10k to £500k) |
| Asset finance (hire purchase and leasing) | Alchemy Business Finance: from 5.1% (£10k to £200k) Lloyds Bank Asset Finance: from 5.27% (£15k to £1m) Oxbury Bank: from 5.75% (£500k to £5m) |
| Invoice finance (factoring and discounting) | Barclays Invoice Finance: from 5.75% (£500k to £10m) NatWest: from 5.75% (£25k to £20m) Kriya: from 5.95% (£100k to £3m) |
| Revolving credit facilities | Juice: from 12% (£150k to £1m) Uncapped: from 12.9% (£25k to £2.5m) Multifi: from 23.88% (£10k to £350k) |
| VAT and tax loans | Playter: from 8.9% (£150k to £2m) Braemar Finance: from 15% (£25k to £500k) Admiral Finance: from 17% (£10k to £100k) |
Fees, early repayment and security
The rate is not the whole cost. Across the products on our panel:
- Arrangement fees: 80% of the loan and asset finance products on our panel can carry an arrangement fee, so compare the total cost, not only the rate.
- Early repayment: our panel data flags 6% of those products as able to charge an early repayment charge; check each offer for its terms.
- Personal guarantees: 95% of unsecured loan products ask for a personal guarantee from directors.
- Loan to value: most secured loan products lend up to 70% to 75% of a residential property's value, and up to 70% to 75% of a commercial property's value (what loan to value means).
- Invoice finance service fees: where a lender gives one, the service fee is up to 3.5% of turnover (some products have none), on top of the discount charge.
What moves the rate you are offered
- Trading history and profit: two or more years of accounts and steady profit open the lower end of the ranges.
- Credit record: missed payments, defaults or a CCJ push pricing up or narrow the lenders.
- Security: a charge on property or an asset lowers risk; see collateral and loan to value.
- Term and size: short, small loans usually carry higher annual rates.
- Bank Rate: variable rates move with the Bank of England's Bank Rate (Bank of England).
Our guide to business loan interest rates explains how rates are quoted (annual, flat and factor rates) and how to compare two offers fairly. For invoice finance, see how much invoice finance costs.
To turn these rates into pounds, with typical fees, terms and worked examples for each type of finance, see how much does a business loan cost.
Method and caveats
- Source: the product data in our lender panel (the lenders we can introduce you to), not adverts or market surveys. Figures were checked in October 2026 and the tables are rebuilt from the panel data whenever it changes.
- What a rate means: the yearly interest rate each lender gives brokers for a product, before arrangement or service fees unless the lender includes them. Some products have no published rate and are priced on application; they count towards the lender and product numbers but not the rate ranges.
- Not a quote: real rates depend on the business, its credit, security and the lender's assessment. Many businesses are offered more than the starting rate.
- Not the whole market: our panel is broad but does not include every UK lender.
- Commercial mortgages, bridging and development finance are priced deal by deal on the property and are not included.
Get rates for your business
To see which lenders on our panel match your business and the rates they show for it, use Instant Quotes or send us your details. We search the market and approach suitable lenders for you. Any broker fee depends on the lender, with nothing to pay upfront.
This guide is general information, not financial advice. Lenders set their own criteria, rates and terms, and all finance is subject to status.
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FAQs
Common questions
What is the average business loan interest rate in the UK?
There is no single average: rates depend on the product, the lender and the business. The table above shows the median starting rate for each type of finance on our panel, which is a better guide than the lowest advertised rate. Your own rate depends on trading history, credit and security.
Why is my quoted rate higher than the lowest rate in the index?
"From" rates go to the strongest applicants: established, profitable businesses with clean credit and often security. Lenders price each application on its own risk, so most businesses are offered rates above the starting figure.
How often is the rate index updated?
The tables are generated from our lender panel data whenever the site is built, so they change when a lender's pricing changes in our panel. The figures were last checked in October 2026.
Are invoice discounting charges included?
Yes. The invoice finance row shows the discount charge range (a yearly rate on the money drawn) and the fees section shows the service fee range where lenders publish one. See invoice finance costs for how the two combine.
What are asset finance rates in the UK?
The asset finance row shows the range across hire purchase and leasing products on our panel. Rates are usually lower for "hard" assets that hold their value, such as vehicles and plant, than for "soft" assets such as IT and software. See asset finance.
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