Guide

How Much Can You Borrow? Business Loan Amounts by Type

The short answer

How much you can borrow depends heavily on whether the loan is secured or unsecured. A secured business loan is typically available from around £25,000 up to £2,000,000 or more, sized against the value of the asset you pledge. An unsecured business loan is typically smaller, from around £5,000 up to £500,000, sized against your business’s trading history and cash flow rather than an asset value.

What determines the amount for a secured loan

• Asset value. The single biggest factor. Lenders lend up to a set loan-to-value against the asset’s independently assessed value, commonly 65-75% for property and lower for depreciating assets like vehicles or equipment.
• Existing charges. If the asset already carries a mortgage or charge, the amount available as a second charge is reduced accordingly.
• Business trading position. Still reviewed, but it carries less weight than the asset itself.

What determines the amount for an unsecured loan

• Turnover and cash flow. Lenders often cap unsecured lending at a multiple of monthly or annual turnover, since there’s no asset value to size the loan against instead.
• Trading history. A longer, more established trading history generally supports a larger unsecured facility.
• Credit profile. Both business and director credit history factor into how much a lender is comfortable offering.

Small business loan amounts, and where asset finance fits

For a small business specifically, the realistic range often sits toward the lower end of both types: a modest unsecured facility if credit and trading history support it, or a smaller secured amount against whatever asset is available. If the funding need is a specific equipment or vehicle purchase rather than general working capital, asset finance can unlock a larger amount for that specific purchase than an equivalent small business loan would, since the new asset itself is the security. Before you apply anywhere, work out which of these actually matches what the money is for, not just which offers the largest headline figure.

How your credit score affects the amount

Your business and director credit score doesn’t just affect whether you’re approved, it affects how much a lender is comfortable offering and at what rate, particularly for unsecured borrowing where credit score is central to the decision. A small business with a strong credit score can often borrow closer to the top of its realistic range; one with a weaker score may still borrow, but at a smaller amount, a higher rate, or both. Our guide to business loans with bad credit covers this in more detail.

Fees and how to get an accurate quote

Any figure you see quoted as a maximum loan amount is indicative until a lender has assessed your specific application, so treat published ranges (including the ones above) as a starting point, not a guarantee. Fees, an arrangement fee is common, sometimes alongside valuation or legal costs on a secured loan, add to the real cost of borrowing on top of the headline amount and rate. The fastest way to get an accurate, personalised quote rather than a general range is our 60-second eligibility check.

Repaying what you borrow

How much you can afford to repay is as important as how much a lender will offer, and worth working out before you apply, not after. Interest is charged on the outstanding balance over the term, so a longer repayment term lowers the monthly amount but increases the total interest paid; a shorter term does the opposite. Check whether early repayment is allowed, and on what terms, if there’s a realistic chance you’ll want to repay ahead of schedule. Our calculators model exactly this trade-off against your own numbers.

Improving how much you could borrow

A few practical steps can improve the amount a lender is willing to offer before you apply: a clean, established business current account with consistent turnover, an up-to-date business credit profile with no unresolved issues, and, for a secured loan, an accurately valued asset with clear ownership. None of these guarantee a specific amount, but a business looking to maximise what it can realistically borrow is better placed addressing these first than applying to multiple lenders and hoping for the best.

Can you get a business loan for £20,000, £100,000, or £500,000?

Most of these amounts are realistic through either route, but the type of loan changes the likely path. £20,000-£100,000 sits comfortably within unsecured lending limits for an established business, and is also achievable secured against a modest asset. £500,000 and above is at the top end of unsecured lending and more commonly arranged as a secured business loan, where a larger asset value supports a correspondingly larger loan.

Modelling your own number

Rather than relying on general ranges, model your actual numbers: our secured business loan calculator shows loan-to-value against a given asset value, and our unsecured business loan calculator models repayments against amount, term and rate. If you’re not sure which route fits, the 60-second eligibility check will point you toward secured or unsecured options based on your specific business and, where relevant, any asset you have available.