Small Business Loans

Last Updated: 08/05/25

Small Business Loans for UK Businesses

A small business loan is a solution for UK-based businesses in need of funding to support their growth and operations. These loans are designed to help small businesses access the capital they need. Small business loans are ideal for businesses that may not have significant assets to use or prefer to maintain flexibility in their financial commitments.

With a small business loan, businesses can access funding quickly and manage repayments over a set period, without the added stress of offering security.

What is a Small Business Loan?

A small business loan is a type of loan specifically tailored to help small businesses with funding for growth, operations, or specific needs. Unlike a secured loan, small business loans do not require the business to put down assets such as property or equipment as collateral. Instead, these loans are typically unsecured, meaning they are based on the creditworthiness of the business and its directors.

The application process for a small business loan is often more straightforward compared to secured loans, with a faster approval timeline. However, since the loan is unsecured, lenders may offer smaller loan amounts or higher interest rates than those found with secured loans, reflecting the increased risk.

Benefits of Small Business Loans

Some of the key benefits of opting for a small business loan include:

• Quick approval process
• No collateral required
• Flexible loan amounts
• Competitive interest rates
• Support for a wide range of business needs

How Does a Small Business Loan Work?

Once you contact us, we will ask you for some details about your business and its financial situation. The information required may include your latest financial statements, bank statements from the past 6 months, and personal details of any business directors.

Once we have your information, we will submit your application to a range of lenders. Typically, you’ll receive an answer within 48 hours. Once you’ve reviewed and agreed to the loan terms and conditions, the necessary documentation will be sent to you for signing. After the final checks have been completed, the funds will be transferred directly to your business.

Start-up Business Loans

Small business loans support start-up businesses in their early stages, providing the necessary capital to get off the ground. These loans help cover initial expenses such as equipment, inventory, and operational costs. Since start-ups typically lack an established credit history, lenders may focus on the business plan, explaining how the loan will be used, and projected cash flow. Small business loans provide start-up businesses a valuable opportunity to access funds without needing extensive financial history. 

Things to Consider for a Small Business Loan

Loan Amount: Small businesses can borrow a variety of amounts depending on their needs and financial standing.

Purpose: A small business loan can be used for any legitimate business purpose.

Repayment Terms: Repayment terms for small business loans vary, but we aim to offer flexible options to suit your business’s cash flow.

Interest Rates: Rates depend on factors such as your business's credit history, the amount borrowed, and the repayment term.

What Can I Use a Small Business Loan For?

A small business loan can be used for a wide variety of purposes to support the growth and day-to-day operations of your business, including:

• Business expansion
• Working capital
• Hiring new staff
• Purchasing inventory
• Marketing and advertising
• Research and development
• Debt consolidation
• Upgrading equipment or facilities

Alternative solutions to small business loans

Working capital loan: This finance facility provides funds for businesses to cover day-to-day operational expenses, designed for businesses who need immediate access to cash.

Unsecured business loan: An unsecured loan is based on the borrower’s creditworthiness, rather than having to use an asset as security, like with a secured business loan.

Secured business loan: A secured business loan uses an asset from the business, typically property, as security against the money that they borrow. The additional security with this finance facility means a secured loan is often viewed as lower risk.

Applying for a small business loan

MAF Finance Group works with a wide range of financial institutions and funders to provide tailored financial solutions for your business.

If you would like to get a quote or need further information, simply fill out the form and a member of our team will contact you. If you would like to speak to some directly, call on 0115 958 6872. Alternatively, email us at [email protected].