Security and / or guarantee may be required. Product fees may apply. Over 18s only. Subject to status, business use only.
Whether you want to start a new business or expand an existing one, a business loan could deliver the cash injection you need. Business loans for new businesses work in the same way as they do for existing ones but can be trickier to get approved. This is because you won't have an established credit history so may be seen as a higher risk.
Do you need to buy new equipment or invest in a new initiative? Having a clear plan will help you decide how much you need to borrow.
If you want to borrow between £1,000 to £50,000 use the Royal Bank Small Business Loan calculator to explore rates and repayment terms.
It’s important to think about how long it’ll take for you to pay back a loan, and any interest. This will help you avoid any issues and charges in the future
There is a range of lending options available, from short-term loans with less interest to pay, to long-term loans offering lower monthly payments. There are also Small Business Loans specifically designed for small to medium size businesses.
It’s a good idea to check your loan eligibility* before starting an application. This way, you’ll know how likely you are to be accepted for a loan before you apply and it won't impact on your credit score.
*Only available for loans up to £50,000.
Lenders want to ensure you’ll be able to pay them back, so they may look at things like:
Carefully read through the terms and conditions of any business loan you apply for. This will help to prevent any costly surprises in the future.
Check for any additional charges like administration and application fees. Find out if you’ll face early repayment charges if you decide to pay off your loan sooner than planned.
Once all those steps are complete, you can gather your documents together and start an application. Usually, the details you’ll need include:
If you are applying for a Royal Bank Small Business Loan, you'll need the following documents to complete your application:
If you get approved for a business loan, you must stick to the repayment terms and conditions, as laid out to you within your loan agreement document.
Be sure to repay the agreed amount by the due date, whether it’s weekly, monthly or on a specific day. Missing payments can lead to penalties, increased interest rates, and potential damage to your business's credit standing.
Some lenders might even require businesses to repay their loans in full if certain terms and conditions aren’t met.
If you’re rejected for a business loan, it’s important not to instantly make more new applications. This could negatively impact your business credit score.
Instead, try to find out why you were rejected. You have the right to ask your lender this within 30-60 days of the result and they’re required to tell you the reasons.
You could also:
We have a guide on how you can appeal a lending decision here.
Think you’re ready to apply for a business loan? You can start the process online today. We offer a range of business loans to help companies get to the next level.
Find out more about Royal Bank business loans
A business loan could benefit your company in a number of ways. From helping you get your plans off the ground to expanding to a new target market. But it’s a good idea to know how business loans work before you apply.
Want to talk to us about your business loan? Get help 24/7 with Cora , our digital assistant, or message us through our mobile app .
You can also contact us on 03456002230 Lines are open 9.00am – 5.30pm Monday to Friday (except public holidays).
Customers with hearing and speech impairments can contact us by using our Relay UK Service: 18001 0345 600 2230
For more information visit the accessibility page.
Calls may be recorded for training and monitoring purposes.
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