Best Business Loans for Limited Companies
Compare the best business loans for UK limited companies, from iwoca to Allica and Funding Circle. See who suits which situation and what to check before you commit.
The best business loan for a limited company depends on what you need the money for, how much security you can offer and how quickly you need funds. There is no single winner: iwoca suits fast, short-term borrowing, Funding Circle and ThinCats suit larger term loans, and Allica and Shawbrook are strong on property-backed and secured lending. This page explains the main options impartially and shows how to weigh them for your situation.
Greenwood Capital is a Manchester-based, whole-of-market finance broker. We are not a lender and this page is educational information, not financial advice. Always confirm current rates, fees and terms directly with any lender before you commit.
What is a secured business loan?
A secured business loan is finance where the lender takes a legal charge over an asset, usually commercial property, so it can recover its money if the loan is not repaid. Because the lender’s risk is lower, secured loans often allow larger amounts and longer terms than unsecured lending, though they also put the pledged asset at risk.
Limited companies can borrow on a secured or unsecured basis. Many lenders will also ask directors for a personal guarantee, which is a separate promise to cover the debt if the company cannot. That matters because it can expose personal assets even when the loan sits in the company name.
The main types of business finance
- Property-backed term loans are lump sums repaid over a set period, secured against commercial (and sometimes residential) property. They suit larger, planned investments where you want predictable repayments.
- Commercial mortgages are long-term loans (often 5 to 25 years) used to buy or refinance business premises. They are the property-purchase equivalent of a residential mortgage.
- Bridging loans are short-term, interest-focused loans (typically up to 12 to 24 months) used to move quickly, for example buying at auction or completing before a longer-term facility is in place. They are fast but usually cost more per month.
- Asset finance lets you fund equipment, vehicles or machinery, using the asset itself as security. It spreads the cost of kit over its useful life.
- Unsecured term loans and revolving credit provide working capital without a property charge, usually for smaller sums and shorter terms, often with a personal guarantee.
How we chose these lenders
As a whole-of-market broker, we see how different lenders behave across a wide range of real cases, so this shortlist reflects breadth of use rather than a ranking of “best to worst”. No lender pays to appear here, and the right choice always depends on the individual business.
We looked at who each lender genuinely serves well, their typical loan sizes and terms, how they treat security and personal guarantees, and their reputation for speed and service. We have deliberately avoided quoting specific rates or fees, because these vary by profile, security and market conditions. Treat every figure as something to confirm with the lender directly.
Shortlist: business lenders for limited companies
iwoca: best for fast, flexible short-term borrowing
iwoca is a UK fintech lender focused on small and micro businesses that need cash quickly. Its Flexi-Loan works like a credit line you draw down and repay, often with same-day or next-day decisions and no early repayment penalty on many products.
It suits limited companies wanting smaller amounts for working capital, stock or short-term gaps rather than large capital projects. Watch-outs: maximum loan sizes are lower than the secured lenders here, pricing on short unsecured borrowing is typically higher per pound borrowed, and directors are usually asked for a personal guarantee. Confirm current limits and terms directly.
Funding Circle: best for unsecured term loans at speed
Funding Circle is a well-established business lending platform offering term loans and other facilities to established SMEs, often with a fast online application and a quick decision. It is a common choice for growth, refinancing or spreading a known cost over a fixed term.
It suits trading limited companies with a reasonable track record that want a straightforward lump sum without pledging property. Watch-outs: it generally lends to businesses with some trading history rather than start-ups, a personal guarantee is typically required, and larger or property-secured needs may be better served elsewhere. Always check the current maximum term and any arrangement fee.
Allica Bank: best for established SMEs wanting relationship banking
Allica Bank is a UK bank built specifically for established small and medium businesses, combining commercial mortgages, asset finance and business current accounts with named relationship managers. It aims to fill the gap left as some high street banks have stepped back from smaller commercial lending.
It suits profitable, established companies buying premises or refinancing, particularly owner-occupiers who value a human point of contact. Watch-outs: it tends to focus on established businesses rather than very new or very small ones, and, as with any commercial mortgage, expect valuations and legal work that add time. Confirm eligibility and current pricing before you rely on it.
Shawbrook: best for secured and property-backed lending
Shawbrook is a specialist UK bank active in secured commercial and property lending, including commercial mortgages and bridging. It is often used for more complex cases that do not fit a standard high street template, such as mixed-use property or investment portfolios.
It suits limited companies and property-holding businesses that can offer property as security and want a lender comfortable with detail. Watch-outs: specialist secured lending involves valuations, legal costs and underwriting that take longer than a quick online loan, and pricing reflects the complexity of the case. Confirm the full cost, including fees, before proceeding.
ThinCats: best for larger cashflow and acquisition funding
ThinCats provides larger, bespoke funding to established mid-sized SMEs, often for growth, management buy-outs, acquisitions or refinancing. Its loans are typically structured around the business rather than sold off a shelf, and can be secured against assets.
It suits companies borrowing larger sums that need a tailored structure and are happy with a more involved, relationship-led process. Watch-outs: it is aimed at established businesses with meaningful turnover rather than start-ups or very small firms, and bespoke deals take longer to arrange than off-the-shelf products. Confirm minimum loan sizes and current terms.
Comparison table
| Lender | Typical funding size | Best for | Typical use | Secured or unsecured | Speed | Watch-out |
|---|---|---|---|---|---|---|
| iwoca | £1k–£1m | Fast, flexible short-term cash | Working capital, stock, short gaps | Usually unsecured, personal guarantee common | Very fast | Lower maximum amounts |
| Funding Circle | £10k–£750k | Unsecured term loans at speed | Growth, refinancing, fixed costs | Usually unsecured, personal guarantee common | Fast | Needs trading history |
| Allica Bank | £25k–£2.5m | Established SMEs, relationship banking | Commercial mortgages, asset finance | Secured | Moderate | Focused on established firms |
| Shawbrook | £150k–£35m | Secured and property-backed lending | Commercial mortgages, bridging, complex cases | Secured | Moderate | Valuation and legal time |
| ThinCats | £1m–£30m | Larger, bespoke funding | Acquisitions, buy-outs, growth | Often secured | Slower, tailored | Aimed at mid-sized SMEs |
Figures such as loan sizes, terms and pricing change regularly and vary by profile. Use this table as a starting point and confirm the current position with each lender.
Worked scenario: how a business might weigh two options
Imagine a limited company that runs a small manufacturing business and owns its freehold unit. It wants to borrow to buy a neighbouring unit and expand. Two very different routes could work.
If the company has time to plan and wants the lowest ongoing cost, a commercial mortgage from a bank such as Allica could suit, spreading repayments over many years and secured against the property. The trade-off is that valuations and legal work mean it will not complete overnight.
If a rival buyer is circling and the company needs to move fast, a short-term bridging loan through a specialist such as Shawbrook could secure the purchase quickly, then be refinanced onto a longer-term commercial mortgage afterwards. Bridging usually costs more per month, so the business would weigh the extra short-term cost against the risk of losing the opportunity. A broker can model both routes so the numbers are clear before any commitment.
How to choose for your situation
The right business loan is the one that matches the purpose, timescale and security you actually have, not simply the one with the headline rate. Ask yourself a few clear questions before comparing lenders.
- What is the money for? Property purchase, equipment, working capital and short-term gaps each point to different products.
- How much do you need, and for how long? Small and short suits flexible unsecured lending; large and long suits secured term loans or commercial mortgages.
- What security can you offer? Property or assets unlock larger amounts and often lower pricing, but put those assets at risk.
- How fast do you need it? Fintech lenders can move in days; secured lending with valuations takes longer.
- Are you comfortable with a personal guarantee? Many limited company loans require one, so understand the personal exposure.
What to check before you commit
Before signing any facility, look past the monthly repayment and understand the total cost and the obligations you are taking on. The cheapest headline rate is not always the cheapest deal once fees are included.
- Total cost: arrangement fees, valuation and legal fees, and any broker fees, alongside the interest rate or representative APR.
- Early repayment: whether you can repay early and whether there is a charge for doing so.
- Security and guarantees: exactly what is charged, and whether a personal guarantee is required and to what extent.
- Term and flexibility: the repayment period, whether payments are fixed or variable, and any covenants you must meet.
- Speed and conditions: realistic timescales and any conditions attached to release of funds.
Reading the full offer document and asking the lender to confirm current figures in writing protects you against surprises later.
Let Greenwood Capital compare the market for you
Choosing between lenders is easier when you can see the whole market side by side against your actual situation. As a whole-of-market broker based in Manchester, Greenwood Capital can compare options across secured and unsecured business finance and help match your requirements to lenders likely to suit them.
This is general help, not financial advice, and any decision remains yours. If you would like an impartial comparison for your limited company, get in touch and tell us what you are trying to fund, and we will do the legwork.