Nationwide Finance review: business loans for UK limited companies

Nationwide Finance is a UK direct lender that provides fixed-term business loans to incorporated companies, and it is known for fast decisions and for considering brand-new companies through a dedicated start-up team. It is one of the lenders on our panel. As an independent broker, we can show you how a Nationwide Finance offer compares with other lenders before you sign anything.

01About Nationwide Finance

Despite the similar name, Nationwide Finance has nothing to do with Nationwide Building Society. Its website identifies it as Nationwide Finance Limited, owned by Moneycore Asset Management Limited, and describes the business as a direct funder that underwrites and funds loans itself rather than acting as a broker.

It deals with customers across the UK through account managers by phone and online rather than through a branch network.

Smart Funding Solutions is an independent broker and is not part of Nationwide Finance. You can check any firm you are thinking of borrowing from on the FCA Register.

02What Nationwide Finance funds

Nationwide Finance keeps its range simple. There are two main routes, both fixed-term loans with fixed monthly repayments:

Product	What it is for	Typical size	Typical term
Business loan	Working capital, expansion, equipment, tax or VAT bills, acquisitions and premises improvements	£8,000 upwards, mostly £25,000 to £500,000	1 to 6 years
Start-up loan	Funding for newly incorporated and early-stage limited companies	Case by case	Case by case

Its website mentions loans of up to £10 million, but says most loans fall between £25,000 and £500,000, so a larger request is likely to need a strong case. Larger loans can take two to five working days to fund, compared with the lender's typical 24 hours for standard cases.

Depending on the size of the loan and your circumstances, a lender like this may ask for security. If property security is involved, read our guides to secured business loans and homeowner business loans so you understand what you are signing up to.

03Who Nationwide Finance suits (and who it may not)

The lender is clear about who it can and cannot help. According to its website:

• It lends to UK limited companies, LLPs and PLCs.
• There is no minimum trading time, and new companies can apply through its start-up team.
• A company must be incorporated before any advance is completed.
• It cannot lend to sole traders or unincorporated partnerships.
• Past defaults or CCJs do not automatically rule you out.

That makes it a realistic option for a newly formed limited company that has been turned away by banks for lack of trading history, or an established company that needs a decision within a day. It may also be worth considering if a director's credit file has some blemishes that are now behind them.

It is not an option if you trade as a sole trader or a partnership; our guide to sole trader loans covers lenders that do help. And if you are a well-established, profitable business with strong credit, it is worth checking whether a mainstream lender could offer a better overall deal.

Its website mentions loans of up to £10 million, but says most loans fall between £25,000 and £500,000, so a larger request is likely to need a strong case.

04What Nationwide Finance looks at

Nationwide Finance says the application itself is short and that it will ask for more information if it needs it. It also says there are no live credit checks while you apply, with a full credit check carried out only after you accept a formal offer. That lets you see whether an offer is available before a full search goes on file.

Before funds are released, business lenders typically review:

• recent business bank statements, to see income and outgoings
• filed accounts or management figures, where the company has them
• the directors' credit history and any existing borrowing
• what the money is for and how the loan will be repaid
• for start-ups, a business plan and the directors' experience

05Pros and cons

Pros

• Fast: the lender aims for a decision in four working hours and funding within 24 hours on standard cases.
• Considers new limited companies with no trading history.
• Past defaults or CCJs are not an automatic decline.
• Fixed monthly repayments make budgeting straightforward.
• Early repayment is allowed at any time, according to the lender.

Cons

• Not available to sole traders or unincorporated partnerships.
• Terms of up to six years are shorter than some bank loans.
• Lenders that accept younger or weaker profiles usually charge more for that risk.
• Very large loans are possible but are not its usual territory.

06Applying through a broker vs going direct

Nationwide Finance makes a point of dealing with customers directly, and you are free to apply to it yourself. The trade-off is that a single lender can only show you its own offer. If your company would qualify with several lenders, you may be leaving a better deal on the table.

When you enquire with us, we look at your business once, search the market across more than 300 lenders and approach the ones that fit your profile, which may well include Nationwide Finance. We then explain the offers side by side so you can compare repayments, term and conditions. It is free to enquire; any broker fee is disclosed separately before you proceed. To see what is available in a few minutes, use our Instant Quotes tool.

07Alternatives to Nationwide Finance

• Fleximize: worth comparing for unsecured or secured business loans where you would like more flexibility around repayments.
• Together: often a better fit if you are a property owner and want to borrow a larger sum secured against property.
• ThinCats: better suited to established, larger SMEs looking for six or seven-figure funding.

For newer businesses, our guide to start-up business loans explains the full range of options, including government-backed schemes.