Fast business funding and loans

Apr 20, 2026 - 14:00

By Anna Jordan on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs

Cashflow is an ongoing concern for small businesses, who often have to deal with reluctant lenders and mountains of paperwork. Which is why more and more are turning to fast funding and loans.

As to why small businesses are being turned down for loans, 31 per cent said it was because their business was too young, 22 per cent that they had high levels of existing debt and 20 per cent due to insufficient collateral. The research from Yolt also revealed that only one in five businesses felt the borrowing process was easy.

However, there may be a fast business funding option that is better for you, which we explore in this article.

What type(s) of funding can I get?

Les Roberts, content manager at Bionic, said: “Typically, a business loan can range from as little as £1,000 up to several million. Repayment terms range from one month to 15 years, depending on the loan type and lender. Business loan rates in the UK also vary, depending on several factors – from the length and size of the loan to your business’s financial position.”

With this kind of funding, you’re generally looking at secured loans (which require something that you own as collateral), unsecured loans (which don’t require collateral but do have higher interest) and merchant cash advances (where you repay your loan as a percentage of future sales).

Jump to your preferred section or read on for the full guide.

What can I use funding for?

Each provider has stipulations, but you can really use your loan for anything as long as it’s business-related. This could include:

Improving cashflow
Buying equipment/stock
Take advantage of a one-off buying opportunity
Clear debt
Pay suppliers

The British Business Bank said that the main reason SMEs raise funding is for working capital or cash flow.

“Fast finance is generally better used when you need to raise funds quickly, such as to bridge short-term cashflow issues, or to take advantage of an opportunity that might have arisen, such as buying some stock in bulk at a discount,” said Stuart Airey, head of corporate finance at Accounts and Legal. “It’s not totally suited to longer-term borrowing, although it can be used that way if other options aren’t available.”

What happens if I can’t repay my loan?

Even with careful planning, there may be times when your business finds it difficult to keep up with loan repayments. If that happens, your bank or lender may impose penalties or begin formal debt recovery action.

Some of the potential consequences include:

Missing one or two repayments will usually lead to late payment charges and/or additional interest from the lender
Missing between three and six repayments may result in default. In most cases, you will have around two weeks to bring the account up to date before the default is formally recorded. A default remains on your credit file for six years, which can make it harder to access finance in future
Where the borrowing is secured, the lender may repossess the asset used as security in order to recover what is owed. This could include property, vehicles or equipment
If you are a company director who has signed a personal guarantee, you can still be held personally liable for the debt if the business defaults, including where the company later enters liquidation
A lender may seek a County Court Judgement (CCJ) to recover the outstanding balance. This will also stay on the business credit record for six years
In some cases, the business could be forced into compulsory liquidation so that its assets can be sold to repay creditors

If you believe you may miss a repayment, or have already missed one, it is important to speak to your lender as early as possible. You may be able to arrange a payment holiday or restructure the loan, helping you avoid the most serious consequences.

Do I need a business bank account?

If you’re a sole trader, you may be able to get away with a personal bank account. Limited companies do need a business bank account to keep their personal and business finances separate. This can also depend on your credit score. In general, you’re better off having a business bank account, even if you’re a sole trader. Read more at 5 benefits of using a business bank account over a personal account, and discover the best business bank accounts here.

>See also: Small business startup funding

Risks of fast business funding

As mentioned before, proving your business is viable in its early stages can be tricky. “The biggest struggle is actually being able to borrow money,” said Airey. “Unless you’ve got a couple of years of profitable trading history and are willing to offer a personal guarantee, a lot of lenders won’t consider you. This makes it really difficult for brand new businesses to secure any financing.”

CEO and founder of Unbiased, Karen Barrett, told Small Business: “For small businesses in need of an immediate cash injection, short-term loans can offer a ready-made solution – applications are processed much faster than traditional loans, and are often accepted within 24 hours. But be warned. The less stringent underwriting process means they can attract higher interest rates and heavy penalties if you fail to repay on time. For this reason, it’s wise to seek professional advice before signing on the dotted line.”

You can mitigate this by asking the right questions. Airey said that you should be asking:

What other options are available?
Whether trying to raise equity funding might be a better option

He added that businesses need to know how they’re going to repay the finance and ensure that future cash flow will be sufficient to meet future repayments.

“Often small businesses don’t shop around when it comes to finance, and the majority take the first offer they receive, which might not be the best product available to them,” said Airey. “Fast funding is generally easier to apply for, but applying with multiple lenders can take time, as their document requests can vary.”

One concern you might have is protecting your credit score. Most firms run a soft credit check, which shouldn’t affect your credit rating. Be sure to check before you apply, though.

The best fast funding providers in the UK

As Airey says, finding the right provider can make a real difference, so here are a few UK-based providers to kick off your search. Note that most of them have some kind of eligibility criteria related to how long you’ve been trading and/or your minimum turnover.

Century Business Finance

Loan limit: £10,000 – £250,000

Repayment term: Six months – five years

Type of finance: Secured and unsecured loans

Time taken for approval: Same-day approval

Can I repay early? Yes

Century Business Finance is a credit broker that offers cashflow loans, unsecured business loans, same-day business loans, VAT & tax business loans and fast business loans. Once approved, the money should be in your bank account on the same day. Note that a financial services intermediary fee will be taken out of your account within seven days of receiving the funding.

You must have been trading for at least 12 months and a minimum turnover of £120,000 per year.

Century Business Finance allows you to repay early.

Iwoca

Loan limit: £1,000-£1m

Repayment term: From one month to five years

Type of finance: Unsecured

Time taken for approval: Within one working day

Can I repay early? Yes

Iwoca can give loans to all businesses, no matter the age or sector. It’s open to sole traders, partnerships and limited companies. After applying, you can be approved to borrow between £1,000 and £1m within 24 hours. Loan rates start at 1.5 per cent, and there are no fees for repaying early.

You need bank statements from the past year to apply (or you can link your account via Open Banking). The other documents required vary based on the type and size of loan, but could include VAT returns or company accounts. You also need a personal guarantee from at least one company director.

Capify

Loan limit: £5,000 to £3m

Repayment term: three to 12 months

Type of finance: Unsecured business loans and merchant cash advance

Time taken for approval: Receive your provisional decision within 60 seconds

Can I repay early? Yes

Capify offers unsecured business loans of between £5,000 and £3m. It takes small, manageable sums from your business bank account each day rather than a lump sum, which makes it easier to manage your cash flow.

You must have been in business for at least 12 months with a minimum gross sales of £10,000 a month and no open bankruptcies.

To apply, you must have six months’ worth of bank statements, a copy of a voided check and a photo ID.

For the merchant cash advance, you need to take at least £6,000 a month in card payments and have six months of trading history.

365 Business Finance

Loan limit: £10,000 – £500,000

Repayment term: Dependent on debit and credit card payments

Type of finance: Merchant cash advance

Time taken for approval: Within 24 hours

Can I repay early? N/A

365 Business Finance is a revenue-based finance provider. Instead of repaying a fixed regular amount, you pay back a percentage of your debit and credit card sales. This means that when your sales are up, you’ll be able to pay more of your loan balance, and when sales are low, you pay less.

To be eligible, you must have been trading for at least 6 months and have an average monthly credit and debit card turnover of £10,000.

Lovey

Loan limit: £1,000 to £750,000

Repayment term: Up to six years

Type of finance: Unsecured loan

Time taken for approval: Minimum four hours

Can I repay early? Yes

Love Finance can offer your business unsecured loans of between £1,000 and £750,000 by matching you to one of over 50 providers. Once approved, it claims you can access your funds within 4 hours.

Must have been trading for a minimum of three months and have a £35,000 minimum annual turnover.

You can repay early without penalty.

Momenta Finance (trading name of Merchant Money Ltd.)

Loan limit: Up to £1.5m secured and up to £500,000 unsecured.

Repayment term: Six months to seven years

Type of finance: Secured and unsecured loans

Time taken for approval: 24-hour approval

Can I repay early? Yes

Merchant Money offers secured loans of up to £1.5m and unsecured loans of up to £500,000, with repayment terms of between six months and seven years. There are no fees for early or over repayments.

Fleximize

Loan Limit: £5,000-£500,000

Repayment term: 12-60 months on Flexiloan; 3-12 months on Flexiloan Lite

Type of finance: Unsecured or secured loans

Time taken for approval: Within 24 hours

Can I repay early? Yes

Fleximize offers both secured and unsecured lending options for both of its loans.

Flexiloan is available for businesses that have been trading for 12+ months. It’s good for those who want flexible, affordable finance for up to four years. It has terms of 12-60 months.

Flexiloan Lite is geared at businesses trading 6+ months, with terms of 3-12 months. It’s best for businesses in early-stage growth phase who need quick access to capital, though more established businesses can also use it as a business loan.

You can apply if you’re a limited company or limited liability partnership with at least four partners, are UK-based with one director living in the UK, you’ve been trading for at least six months and you have a minimum monthly turnover of at least £5,000.

If you’re a sole trader or a non-limited partnership with fewer than four partners, you can apply if you want more than £25,000.

Funding Circle

Loan limit: £10,000-£750,000

Repayment term: Six months to six years

Type of finance: Unsecured loans

Time take for approval: Typically within 48 hours

Can I repay early? Yes

Interest rates starting at 6.9 per cent per year with Funding Circle.

You must have a minimum of one year of trading history to get finance with Funding Circle. To apply, you may also need business bank statements for up to eight months and your latest full unabbreviated accounts – profit and loss, detailed profit and loss, balance sheet information.

There are no fees for early repayment.