New business loans
Compare New
Business Loans
What we do
Compare Advantage is a free comparison service. Tell us about your new business and what you need, and our partner, FCA-authorised broker Halo Corporate Finance, checks your enquiry against the 130+ lenders on its panel, including lenders that consider businesses in their first years of trading.
- Lenders that consider businesses in their first years
- Asset finance for kit, even with little trading history
- Clear on personal guarantees before you sign
Prefer to talk? Call 0330 057 7175
- 130+ lendersOn our partner’s panel
- £5k to £1mLoans and asset finance
- One enquiryInstead of one per lender
- FCA-authorised partnerHalo Corporate Finance
- Free to enquireNo obligation to apply
Compare before you apply
Comparing matters most when you are new
A new business is the hardest kind to lend to, because there are no accounts to show how it performs. Lenders deal with that in very different ways. Some will not lend at all until you have two years of figures. Others look at your bank statements, your experience or the asset you are buying, and some specialise in early-stage firms. Applying to them one by one can mean a string of refusals and searches on your file. One enquiry finds the ones that fit where your business is now.
- 1
Tell us once
Two minutes on the form: how much, what it is for and a few details about the business.
- 2
The panel is checked
Halo Corporate Finance matches your enquiry against the 130+ lenders on its panel.
- 3
You choose
Halo talks you through the options that fit. You decide whether to apply. There is no obligation.
What to compare
- A Start Up Loan against a commercial lender. The government-backed scheme has a fixed rate and free mentoring; a commercial lender may lend more or faster. See both.
- Asset finance against a loan. If the money is for a van, an oven or a machine, financing the asset itself is often easier for a new business than borrowing cash.
- What you are guaranteeing personally. Most lenders to new companies ask directors for a personal guarantee. Know how much of the debt it covers.
- Whether you need it all now. Borrowing in stages, as you hit milestones, can cost less and becomes easier as your trading record grows.
- The repayment against your first-year income. Projections are optimistic by nature. Check the payment still works if sales arrive a few months later than planned.
Stage by stage
What finance is realistic, and when
Your options widen with every month of trading. Knowing where you are saves applying for finance you cannot get yet.
- 1
Before you trade
Personal and government-backed
Start Up Loans, savings, family, and asset finance for specific kit with a deposit. Commercial lenders rarely lend cash to a business with no sales yet.
- 2
0 to 6 months
Asset-backed first
Vehicle and equipment finance, often with a deposit and a personal guarantee. A few lenders consider small unsecured amounts against early bank statements.
- 3
6 to 12 months
Bank statements start to count
More lenders will look at six months of transactions. Invoice finance becomes possible for businesses with business customers.
- 4
1 to 2 years
First accounts open doors
Once a first year’s accounts are filed, many more lenders on the panel can consider unsecured loans, larger asset finance and government-backed schemes.
- 5
2 years and more
The full market
Two years of accounts is the point at which most mainstream business lenders are comfortable. See our small business loans page.
A general guide. Individual lenders set their own minimum trading periods.
No accounts yet?
What lenders look at instead
Without a trading record, a lender is judging you and your plan as much as the business. These six things carry the weight.
Your own track record
Years in the trade, previous businesses you have run, and the qualifications behind what you are doing.
Your personal credit
With little business history, lenders lean on the directors’ personal credit files and how they manage their own borrowing.
Real demand
Contracts, letters of intent, pre-orders or regular customers already lined up. Evidence of sales beats a projection.
Your own stake
What you are putting in yourself. A deposit or savings invested in the business shows you share the risk.
A credible plan
A business plan and cash flow forecast with figures you can explain, including what happens if sales start slower.
The asset
For asset finance, the value of the van or machine itself, which is why it is often the easiest first finance to get.
Government-backed
Start Up Loans, as of November 2026
The British Business Bank’s Start Up Loans programme is the main government-backed option for founders. It is a personal loan used for the business, so it is based on you rather than a trading record. The terms changed in April 2026.
- Amount
- £500 to £25,000 per person
- Rate
- 7.5% a year, fixed, for new applications from April 2026
- Term
- 1 to 5 years
- Who
- UK businesses trading for up to 60 months, or about to start
- Extras
- No set-up fees, plus free mentoring
- How
- Apply directly through the Start Up Loans programme
Start Up Loans are not arranged through brokers, so apply to the programme directly. If you need more, or need it for equipment or vehicles, compare the panel alongside it.
Before you sign
Personal guarantees, in plain English
Setting up a limited company separates the business’s debts from yours. A personal guarantee undoes that for one debt: if the company cannot repay, the lender can ask you to pay instead, from your own money.
Most lenders to new companies ask for one. That does not make it a bad idea, but it should never be a box you tick without reading.
How much it covers
A guarantee can cover part of the loan or all of it. Ask for the figure, and whether it can be capped.
What it is secured on
Some guarantees are unsecured promises; others are backed by property. Under the Growth Guarantee Scheme, your main home cannot be taken as security.
When it ends
Usually when the debt is repaid. Ask whether it covers only this loan or any future borrowing too.
Who signs
If there are several directors, check whether each guarantees the whole amount or a share.
Starting up in figures
Why lenders are careful, and why planning pays
Hundreds of thousands of businesses start every year, and most do not reach their fifth birthday. That is the risk lenders are pricing. Borrowing only what you need, and in stages, keeps that risk manageable for you too.
815,277
new companies incorporated at Companies House in the year to March 2026
317,000
business births in the UK in 2024, according to the ONS
38.4%
of businesses born in 2019 were still trading five years later
Sources: Companies House, register activities April 2025 to March 2026; ONS, Business demography UK 2024 (November 2025).
A practical first step
Finance the kit, keep your cash
Many new businesses spend their start-up cash on equipment, then run short of money for wages and stock. Financing the van, the oven or the machine through asset finance keeps that cash in the business. Because the asset secures it, it is often the first finance a new business can get. See vehicle finance and equipment finance.
Can I get a business loan for a new business?
Yes, but your options depend on how long you have been trading. Before you start, the main routes are Start Up Loans and asset finance. After six to twelve months of bank statements, and especially after your first accounts, many more lenders on the panel will consider you.
What is a Start Up Loan?
A government-backed personal loan from the British Business Bank’s Start Up Loans programme, for people starting or growing a business that has traded for up to 60 months. It offers £500 to £25,000 per person at a fixed 7.5% a year for new applications from April 2026, with free mentoring. You apply to the programme directly.
Can a start-up use the Growth Guarantee Scheme?
Possibly. The scheme does not set a minimum trading period, but the lender must be satisfied the business is viable, so start-ups are considered at the lender’s discretion. The business stays fully liable for the debt, and your main home cannot be taken as security.
Do I need a personal guarantee?
Usually, for a new limited company. A personal guarantee makes you personally liable if the business cannot repay, and can cover anything from part of the loan to all of it. Limited liability does not protect you from a debt you have guaranteed.
Can I get start-up finance with bad personal credit?
It is harder, because lenders lean on the directors’ personal credit when the business is new. Asset finance with a deposit is often the most realistic route. Some lenders on the panel specialise in weaker credit, at a higher cost.
Is asset finance easier to get as a new business?
Often, yes. The van, machine or equipment secures the agreement, so the lender relies less on your trading history. See our asset finance page.
How much can a new business borrow?
It depends on what the money is for, your personal stake and credit, and any evidence of sales. Start Up Loans go up to £25,000 per person. Commercial lenders typically start smaller for new businesses and lend more as your track record grows.
Do I need a business plan?
For a Start Up Loan, yes. For other lenders, a short plan with a realistic cash flow forecast helps a lot when there are no accounts to look at. Be ready to explain your assumptions.
I am a sole trader. Is my loan regulated?
If you borrow £25,000 or less as a sole trader, or as a partnership of two or three partners, the loan is usually regulated by consumer credit law, even though it is for the business. That gives you extra protections.
Should I borrow before I start trading?
Only what you need to get going. Borrowing everything up front means paying interest on money you are not using yet. Many founders borrow for essential kit first, then for working capital once sales begin.
Can I get a loan to buy an existing business?
That is acquisition finance, which works differently from a start-up loan because the lender can look at the existing business’s accounts. Mention it in your enquiry and Halo will check which lenders on the panel consider it.
Sources
- Start Up Loans: changes to interest rate and eligibility (April 2026)
- British Business Bank: Growth Guarantee Scheme FAQs
- British Business Bank: Personal guarantees in business borrowing
- GOV.UK: Personal and company debts, director information hub
- Companies House: Companies register activities, April 2025 to March 2026
- ONS: Business demography, UK 2024
- legislation.gov.uk: Regulated Activities Order, article 60C
- FCA register: Halo Corporate Finance Ltd (FRN 726655)
Written by the Compare Advantage team, Chorley. Facts checked against the sources above on 4 November 2026. This page is general information, not financial advice.
Compare Advantage Ltd (FRN 1028452, company no. 14289362) is an Introducer Appointed Representative of Halo Corporate Finance Ltd (FRN 726655). We introduce business finance enquiries to Halo. We are not a lender and do not give financial advice. If you take out finance, the lender may pay commission to Halo Corporate Finance, and Halo may pay us a fee for the introduction. Finance is subject to status and is available to UK businesses only.