How much a business can borrow in the UK depends a lot on the lender, the type of loan, and the financial health/size of the business. But here are typical ranges and constraints as of 2025.
💷 Typical borrowing ranges in the UK
- For smaller loans / unsecured business loans: many lenders offer from £1,000 up to ~£750,000. swiftfund.co.uk+2ABC Finance+2
- For secured loans (i.e. backed by business assets or collateral), businesses may borrow much larger amounts — often several million pounds. British Business Bank+2ABC Finance+2
- Some lenders for SMEs (small and medium enterprises) offer between £5,000 and £500,000, depending on business revenue. Fleximize+1
- For larger or more established businesses with sufficient collateral and track record, loans in the £100,000 to £1,000,000 range are common. sparkfinance.co.uk+1
- Under certain government-backed or guarantee schemes (for example from British Business Bank), some facilities may allow borrowing up to £2 million. British Business Bank+1
🔎 What determines how much you can borrow
Whether your business qualifies for higher amounts depends on multiple factors: British Business Bank+2ABC Finance+2
- Business’s size, turnover, profitability, and trading history.
- Whether the loan is secured (asset-backed) or unsecured. Secured loans allow higher limits. ABC Finance+1
- The lender’s policy, your credit history, and ability to repay. British Business Bank+2sparkfinance.co.uk+2
- What you’re borrowing for — working capital, expansion, asset purchase, etc. Some lenders calibrate loan size relative to revenue (e.g. up to two months’ revenue). Fleximize+1
✅ What this means in practice
- If you are a small or medium-sized business with modest revenue and limited collateral, you’ll more likely qualify for £5,000–£500,000 or maybe up to £750,000 if conditions are good.
- If your business is larger, with stable turnover and assets, you may be able to secure £1 million+ — and in certain cases up to £2 million or more under guaranteed-loan schemes.
- Always remember: borrowing capacity is not just about the maximum range — repayment capacity, business health, assets, and loan type usually matter more.
