Business Loans: What You Need to Know Before You Borrow

When you need money to grow your business, a business loan, a sum of money borrowed from a lender to fund business operations or expansion. Also known as small business financing, it’s one of the most common ways UK entrepreneurs get the cash they need to buy equipment, hire staff, or cover slow months. But getting approved isn’t just about having a good idea—it’s about showing lenders you can pay it back.

Most lenders look at three things: your credit score, a number that shows how reliably you’ve paid bills in the past, your business cash flow, how much money comes in and out of your business each month, and your collateral, assets like equipment or property you can offer as security. If you’re new, you might not have much of any of these—but that doesn’t mean you’re out of luck. Some lenders focus on your business plan, sales history, or even your personal character. The key is knowing what type of loan fits your situation: term loans for big purchases, lines of credit for day-to-day gaps, or SBA-backed options for lower rates.

Too many business owners jump into a loan without asking the right questions. What’s the real cost? Are you paying for 3 years or 10? Is the rate fixed or floating? Can you afford the payments if sales drop? These aren’t just fine print details—they’re make-or-break factors. And while some lenders push quick approvals, the best deals often take time to find. You don’t need to borrow the maximum. Borrow what you need, when you need it, and only from a source that understands your business—not just your numbers.

Below, you’ll find real advice from business owners who’ve been there. Whether you’re looking at your first loan or trying to refinance after a rough year, these posts break down what actually works—no fluff, no hype, just the facts that help you decide.