Large business loans: borrow up to £500,000

A large business loan is a type of financing typically designed for more established businesses with greater financial needs. 

Here at iwoca, you can borrow up to £500,000 for up to 24 months. We’ll take monthly repayments but exactly ‘when’ you repay and ‘how much’ you repay on top of your schedule is up to you; you can pay everything back in 1 day if you’d like – if you do, you’ll only pay one day’s worth of interest! It’s completely flexible. 

You can use large business loans for a variety of purposes: funding major investments, acquiring new assets, expanding operations and managing cash flow are a few examples. The interest rates and terms for large business loans may vary depending on factors such as your business’s financial history, creditworthiness, and the purpose of the loan.

Given the sums involved, securing approval for a large business loan can be a more complex process than a normal business loan, but with the right preparation, you can improve your chances. Follow these steps to get started:

• Define your goals: Clearly define why you need the loan and how it will benefit your business. For instance, if you're looking to expand your operations by opening a new location, detail how the new location will increase revenue and market reach. A specific purpose helps in crafting a compelling application and business plan, as well as helping you understand how much you need for a targeted application.
• Check your credit Scores: Lenders will scrutinise both your personal and business credit scores. Generally, a personal credit score above 700 is considered good, while a score above 750 is excellent. For business credit, aim for a score of 80 or higher on the Experian scale. Ensure your credit reports are accurate and address any discrepancies. If your scores are lower, consider strategies to improve them, such as paying down debt or correcting errors on your credit report.
• Organise essential documents: Prepare all necessary documentation, including financial statements, tax returns, and legal documents. For example, if your business has multiple revenue streams, provide detailed income statements and cash flow analyses for each. Having these documents ready shows lenders that you are organised and serious about your business, therefore lowering your perceived risk.
• Develop a Solid Business Plan and Presentation: A comprehensive business plan is crucial. It should include your business model, market analysis, financial projections, and how you plan to use the loan. For example, if you plan to use the loan for purchasing new equipment, explain how this will improve efficiency and increase production capacity. Practise your pitch to convey confidence and clarity during lender meetings.

Compare Loan Options: Compare different lenders and loan products to find the best fit for your business needs. Consider both traditional banks and alternative lenders like iwoca, which can offer more flexible terms and faster approval processes. For instance, if you need quick access to funds, iwoca’s fast-track loan approval might be more suitable than a traditional bank’s longer process.

Sign up online and link your business accounts to iwoca, or upload bank statements, VAT returns or company accounts. We will make an instant assessment of your business and confirm your offer within hours. If you are happy to proceed you can withdraw the funds to your bank account.

It takes a few minutes to apply. Your account manager will then be able to review your account and put an offer in place within hours. Once you are approved you can withdraw the funds to your bank account, 24/7.

Interest rates vary from 2% to 6% per month. Sign up to receive a tailored offer, with no obligation to proceed. Interest accrues daily which means you only pay for each day you have the funds. For example a business on a 3% monthly rate would only pay £1 per day for every £1,000 they had outstanding.

While it is possible to get a large business loan with no collateral, larger sums represent an increased risk for lenders. Iwoca specialised in unsecured loans based on your business performance, lending up to around one month’s revenue. If you have sufficient money coming into your business, you may be able to get a large business loan without collateral, though you may need a personal guarantee.

Minimum repayments must be made either weekly or monthly, depending on the repayment schedule you agree to when requesting funds. However, if you wish to keep the funds for less than the full 24 month term you can choose to repay early for free.

Minimum repayments are taken automatically via your registered debit card. Just make sure there are sufficient funds available in your bank account on your repayment date. You can also make free early repayments by bank transfer or debit card through your online account.

We do our best to lend responsibly and encourage you to ensure that you can afford repayments before taking a loan. However, if circumstances change and you have difficulty making repayments get in touch with your account manager on 020 3397 3375. They will try to help you get back on track.