Business Loans
Secure the business loan that fits your next move
A business loan is a lump sum a funder advances to your business, which you repay with interest over an agreed term. Guavas is a credit broker: we compare options across our panel of 50+ UK funders and arrange the loan. A poor credit history does not rule you out with us, but approval is always the funder's decision. Our quote form carries no obligation.
- We compare options across our panel for you
- See options from funders on our panel that suit your business
- We work with you to find an option that fits
- An obligation-free decision process
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Some of the funders we work with
Award-recognised business finance
Highly Commended: Invoice Finance Broker of the Year, Business Moneyfacts Awards 2025
Confirmed Finalist: Invoice Finance Broker of the Year, Business Moneyfacts Awards 2026
The basics
What is a business loan?
A business loan is a lump sum of capital a funder advances to your business, which you repay with interest over an agreed term — used to fund growth, cover working capital, or invest in new opportunities.
Business loans come from banks, online funders and other lenders. Guavas arranges business loans by matching you to funders on our panel of 50+. We do not lend ourselves. Loans can pay for equipment, stock, marketing or working capital.
Which loan fits?
The five types of business loan
| Loan type | What it is | Best for |
|---|---|---|
| Bank loans | A common business loan type from high-street banks. Often secured against assets, with longer repayment terms. | Established businesses with strong credit histories |
| Unsecured business loans | Unsecured business loans don't require collateral. Approval rests on your creditworthiness, business revenue, and financial strength, rather than assets you can put up as security. | Startups or small businesses without substantial assets to pledge |
| Start-up loans | For new businesses in their early stages, often with lower borrowing limits. Can be secured or unsecured, depending on the funder. | New businesses in their early stages |
| Secured business loans | Backed by property or equipment. In return you can often borrow more, over longer terms, and at lower cost than an unsecured loan. | Businesses seeking significant funding for expansion or investment |
| Commercial loans | Built for larger businesses financing commercial property: offices, warehouses, or retail space, with terms tailored to the investment. | Larger businesses financing commercial property |
Bank loans
A common business loan type from high-street banks. Often secured against assets, with longer repayment terms.
Best for Established businesses with strong credit histories
Unsecured business loans
Unsecured business loans don't require collateral. Approval rests on your creditworthiness, business revenue, and financial strength, rather than assets you can put up as security.
Best for Startups or small businesses without substantial assets to pledge
Start-up loans
For new businesses in their early stages, often with lower borrowing limits. Can be secured or unsecured, depending on the funder.
Best for New businesses in their early stages
Secured business loans
Backed by property or equipment. In return you can often borrow more, over longer terms, and at lower cost than an unsecured loan.
Best for Businesses seeking significant funding for expansion or investment
Commercial loans
Built for larger businesses financing commercial property: offices, warehouses, or retail space, with terms tailored to the investment.
Best for Larger businesses financing commercial property
Not sure which?
That's the point of a broker
Guavas compares options across our panel of 50+ lenders so you land on the loan that suits your business, not just the first offer you find.
Is a business loan right for you?
Good fit if
- You want a fixed lump sum for a defined purpose such as equipment, stock, premises or growth
- You can make regular repayments
- You are a UK registered company (Ltd, PLC or LLP)
Probably not a fit if
- You need a revolving or flexible pot (a credit card or overdraft may fit better)
- Your need is cash tied up in unpaid invoices (invoice finance may fit better)
- You are a sole trader or an ordinary partnership. We cannot help with these.
What funders look at
- Your trading history and turnover
- Your business and personal credit history. Paying on time, keeping credit use low and fixing any errors on your credit reports helps.
- What the loan is for. A clear business plan that sets out your goals, strategy and financial projections strengthens an application.
- Whether you can afford the repayments. Accurate records and sound cash-flow management help show it.
- Any security on offer
Having recent bank statements and financial accounts to hand speeds things up. A weak area does not always rule you out, but the funder decides. If your credit history is poor, you can still ask us (see the bad credit question in our FAQs).
Why businesses choose it
The benefits of a business loan
Access to growth capital
A business loan gives you the capital to expand operations, invest in equipment, or fund your next stage of growth — without waiting to build up reserves.
Improved cash-flow management
A lump sum injected at the right time smooths out cash flow and covers day-to-day costs.
A fixed sum for a set purpose
A fixed lump sum for a set purpose, repaid over a term you agree up front.
Options from 50+ UK funders
We compare business loan options across our panel of 50+ UK funders, so you can see more than one route where funders are able to offer.
What does a business loan cost, and how is Guavas paid?
The funder sets the interest rate and any fees, and they depend on your business, the amount, the term and whether security is offered. We do not publish rates because they are specific to you. Guavas does not charge you a fee. We are paid commission by the funder when you take out a loan, as set out in our commission disclosure. Read it before you decide.
A worked example (hypothetical)
A business borrows £50,000 over 36 months to buy equipment. It repays the £50,000 plus interest and fees in monthly instalments. The total repaid is more than £50,000, and how much more depends on the funder's rate, any fees and whether security is offered. The figures are round numbers for illustration only, not a quote.
Our three-step process
The Guavas way
-
Tell us what you need.
Answer seven questions about your business. It takes about two minutes.
-
We match you with funders.
We compare your answers against our panel of 50+ UK funders.
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Compare and choose.
We show you the options that fit. You decide whether to go ahead, and the funder makes the final decision.
Business loans FAQs
What are business loans?
A business loan provides your business with a lump sum of capital that can be used for a range of purposes — expanding operations, managing cash flow, or investing in new equipment. Guavas arranges tailored business loan options to match your specific needs. Read more about the different types of business loans.
How do business loans work?
A business loan provides a lump sum of capital that you repay over time with interest. Terms, interest rates, and repayment schedules vary between funders and loan types — comparing your options is the best way to find the right fit. See our guide on how small business loans work.
Can I get a business loan with bad credit?
Yes, it can be possible. Guavas arranges options from funders on our panel who will consider businesses with a poor credit history, and they look at the full picture rather than a score alone. It is not guaranteed: the funder decides, and a weaker history can mean a smaller loan, shorter term or higher cost. Our quote form carries no obligation. Read our guide to bad credit business loans.
What fees and costs are involved, and how is Guavas paid?
The funder sets the interest rate and any fees, for example arrangement or early repayment charges. Guavas does not charge you a fee; the funder pays us commission, explained in our commission disclosure.
Who can apply for a business loan through Guavas?
Guavas works with UK registered companies (Ltd, PLC and LLP). We cannot help sole traders or ordinary partnerships.
What documents will I need to apply?
You'll need to gather supporting documents such as financial statements, bank statements, tax returns, and identification. Having these ready and up to date keeps your application moving quickly. A clear business plan strengthens an application, and we will tell you what the funder is likely to want to see.
What happens after I apply?
The funder carries out a thorough evaluation of your application, including your credit history, financial documents, and proposal, along with any further checks such as verifying collateral. If approved, the funder issues a loan offer setting out the amount, interest rate, repayment terms, and any fees. Review the terms carefully, and ask questions, before accepting. Once you accept the offer, the funder transfers the funds to your business bank account.
Related guides
Types of Business Loans Explained
A clear guide to the business loan types available in the UK — from traditional bank loans and secured facilities to unsecured, start-up, and commercial finance — and how to tell which fits your business.
Read guideSecured vs Unsecured Business Loans Explained
Understand the key differences between secured and unsecured business loans so you can choose the right structure for your business.
Read guideSmall Business Loans and How They Work
A step-by-step UK guide to how small business loans work — from preparing your application through to funding arriving in your account.
Read guideNeed cash while customers pay you? See invoice finance. Need a flexible card? See business credit cards.
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