Applying for business loans each time you require funding can be a lot of hassle and be time-consuming especially if you are unable to predict when you will need a cash injection to help you manage your cash flow or any seasonal fluctuations.
If this sounds familiar to your business, then a business line of credit may suit you as it allows you to draw down funds to your credit limit when you need them and you may only pay interest when you have the funds. Below is what some leading lenders can offer.
The table below gives a quick price comparison of the top UK providers for a business line of credit.
| Company | Minimum amount | Maximum amount |
|---|---|---|
| Iwoca | £1,000 | £200,000 |
| Funding Circle | £10,000 | £500,000 |
| Paragon Bank | £5 million | £25 million |
| Spotcap | Not stated | £250,000 |
| 365 Business Finance | Not stated | Not stated |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
Topics
Featured: Iwoca*
Some of the features and benefits of Iwoca’s business line of credit.
- Business finance solutions that offer a revolving credit facility
- Borrow from £1,000 to £200,000
- Can be used for cash flow, stock or investment
- Claim to offer fast and fair decisions
- Flexible solution
- Only pay interest when you have the funds
- Repay when you can
- Top up the loan during the period
- Lends up to 1 month’s revenue
- Highly rated on Trustpilot
Iwoca is a business loan provider who operates across Europe offering loans to small businesses to assist them to grow through their flexible loans which are suitable for cash flow, stock and investment. Their loan product offers a revolving credit facility allowing businesses to top up their loan during the loan term.
Iwoca offers funding from £1,000 to £200,000 over terms up to 12 months but their loans are normally limited to the equivalent of one month’s revenue or £10,000 for new business start-ups. You only pay interest when you have the money, not over the whole loan term and repayments are not fixed but flexible to your needs.
2. Funding Circle
Some of the features and benefits of Funding Circle’s business line of credit.
- Business loan that offers a line of credit
- Unsecured loans
- Loans from £10,000 to £500,000
- Rates start at 1.9% per year
- Decisions can be reached within 5 hours
- No early repayment fees
- Quick application
- Funding received in days
- Dedicated account manager
- Highly rated on Trustpilot
Funding Circle is an alternative financial provider who has built its business by bringing together investors and lenders under their brand. They offer loans to UK businesses to help them to expand, boost cash flow, hire staff and fund their next steps. Their loans offer short-term funding and a business line of credit.
Funding Circle’s loans offer funds from £10,000 to £500,000 with rates starting from 1.9% per year. Their loans are unsecured, and they do not charge early repayment charges. They have a quick online application form that can result in a decision within as little as 5 hours and you can receive funding within days.
3. Paragon Bank
Some of the features and benefits of Paragon Bank’s business line of credit.
- Structured lending
- Offers a line of credit
- Secured funding
- Borrow from £5 to £25 million
- Terms up to 3 years
- Can be used for property, retail point of sale, asset finance and consumer finance
- Dedicated Structured Lending team
- Provide a relationship-driven approach
- Designed for businesses who lend money
- Suitable for UK based non-banking businesses
Paragon Bank is a bank that specialises in lending and savings products for businesses that are based in the UK that are non-banking businesses that offer lending facilities that are for property, retail point of sale, asset finance and consumer finance.
Paragon Bank’s Structured Lending offers a line of credit that is a revolving credit facility which can typically lend £5 to £25 million over terms up to 3 years. They provide a dedicated Structured Lending team who offer a relationship-driven approach to their service. They offer a variety of lending opportunities to support lenders in their diverse range of products.
4. Spotcap
Some of the features and benefits of Spotcap’s business line of credit.
- Offers specific business line of credit product
- Borrow up to £250,000
- Back by bank-level underwriting
- No personal guarantees required
- Decisions can be received in one working day
- Transparent loans
- No early repayment fees
- Only pay interest on what you borrow
- Has a dedicated team of underwriting experts
- Suited to established businesses
Spotcap is a specialist online lender that offers finance to businesses that are small to medium-sized. They offer loan solutions that give businesses a more tailored approach to lending and a swifter lending process which is available to a variety of businesses.
Spotcap’s business line of credit offers loans up to £250,000 which require no personal guarantees as their loans are back by bank-level underwriting. The loans are transparent with no early repayment fees and decisions can be reached within one working day. You only pay interest when you borrow funds and you can top up the loan at any point.
5. 365 Business Finance
Some of the features and benefits of 365 Business Finance’s business line of credit.
- Specifically designed business line of credit facility
- Ability to continually drawdown on credit
- Reduce the hassle of having to apply each time you need a loan
- Loans match your monthly credit and debit card sales
- Unsecured loans
- Can apply in minutes
- Receive your cash advance in days
- Helps with cash flow and seasonal fluctuations
- Plugs short-term cash deficit
- Designed for small businesses
365 Business Finance is a specialist finance provider offering merchant cash advance which are loans that are directly linked to the amount of credit and debit card sales you take each month. This dictates the amount of money you can borrow. Their business line of credit offers the facility to borrow up to your credit limit.
365 Business Finance’s business line of credit is an unsecured loan that can be applied for in minutes and you can receive the cash within days. The loan is designed to assist businesses requiring short-term cash injection and can draw down funds when needed such as increasing cash flow and managing seasonal fluctuations.
* Please note we may be paid a fee if you visit Swoop, Iwoca and/or EJ Finance to take out a loan.