Fund your future with a limited company loan
Whether you want to grow your business, boost working capital, buy new gear, or start a project, these loans can help.
- Borrow up to £500,000
- Get a decision in 24 hours
- No fees for repaying early
- No impact on your credit score
Loved by over 90,000+ small businesses since 2012
Getting a limited company loan
Apply in 5 minutes
We designed our loans with small businesses in mind. We'll just need the basics about yourself and your business to make a decision.
Get a decision in less than 24 hours
That's the biggest time we need.
Use your funds
Once approved, you then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
What are the eligibility requirements for these loans?
If your company has good credit, financial stability, and profitability, you should get an offer when you apply. The eligibility requirements may vary from one lender to another though. We’ve written a piece on how to get a business loan with iwoca, have a read through it and feel free to apply. It won’t impact your credit score.
What factors determine the loan amount available to limited companies?
Many factors influence the loan amount available to limited companies. The first one is the lender's policies and risk appetite. Different lenders have varying thresholds for the amounts they're willing to loan out. If you have a rough idea of how much you’d like to get, pay attention to the range the lender advertises. For example, with iwoca you can borrow from £1,000 to £500,000.
The second element is your company's financial health. We usually have a look at your company's revenues, profits, and debt levels to assess their capability to repay the loan. Your credit score is also something we look at.
Lastly, the purpose of the loan can also impact the amount. For instance, a loan for expansion or buy of significant assets may command a higher amount compared to a loan for working capital.
What factors determine the interest rates for loans to limited companies?
Loans to limited companies have interest rates based on creditworthiness, loan term, and market rates. You can fix the interest rates or make them variable. If you fancy other types of repayments, have a look at some alternative funding options.
Check how much you could get
We’ll only charge interest on your outstanding balance for the days you’re using your business loan – no hidden fees, no long-term commitments. Our business loan rates start at 2% a month for a Flexi-Loan, depending on your business.
6 monthly repayments of £1,120
Total repayment of £31,685(3.33% interest rate per 30 days)
This loan calculator is only an example, your actual rate for your business loan will vary based on your circumstances. Here’s another example: if you borrowed £10,000 for 12 months at 49% representative APR, with an interest rate of 40% p.a. (variable), then, all in all, the total amount you’d repay would be £12,294.
What determines how long limited companies have to repay loans and how does it impact monthly payments and interest?
Loan terms for limited companies can range from 1 day to several years. The length of time to pay back the loan is determined by why the company took out the loan, the company's projected money coming in, and the lender. Longer-term loans may have lower monthly repayments but may add more interest over time. That’s why at iwoca we allow our customers to repay whenever they want, at no cost.
What type of security or collateral may lenders require limited companies to provide in order to secure a loan?
Some lenders may need limited companies to provide collateral, such as property, equipment, or inventory, to secure the loan. This helps mitigate the lender's risk and provides assurance that the loan will be repaid. That is called a secured business loan. Other lenders offer unsecured loans, often backed by a Personal Guarantee.
What are the repayment requirements for limited companies when obtaining a loan?
This very much depends on each lender’s policy. With iwocaus, you apply for a loan amount and a repayment duration. As part of our credit decision, we will consider both and agree upon the repayment schedule during the loan application process. Yet, once you get the money on your account, you’re free to repay early at no cost.
What documents and information are typically required when applying for a loan for a limited company?
Lenders usually ask for some basic information on you and your business. Once you get an offer, and if you want to move further with it, lenders might ask for documents. For example if you decide to apply for a business loan with us, the process is 100% online. If we approve your application, here’s what you’d need to do:
- Add your bank details in your account: we’ll send the funds to this account
- Complete an online identity check
- Add details of your company’s directors and major shareholders (Name, date of birth and address)
- Link a debit card that we’ll use for the monthly repayments
- Read and sign the online Credit Agreement and Personal Guarantee.
- Other steps may be applicable depending on your business
What should I consider before taking out a loan for my limited company?
Before borrowing, think about your ability to pay back the loan, how it will affect your cash flow, and any risks involved. Feel free to seek professional advice from accountants or financial advisors to make an informed decision. You can also try and see how the repayments would look with our calculator.
Questions? We're here to help
Call us at 020 3397 3375 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
Read our in-depth guides about the world of business finance, designed to help you achieve more.
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