Table of Contents

1. Introduction
   
2. What Are SME Business Loans?
   
3. Types of SME Loans
   
4. Who Can Get These Loans?
   
5. How to Apply
   
6. Help from Banks and the Government
   
7. Other Ways to Fund Your Business
   
   
8. FAQs
   

Key Takeaways

• SME loans help small and medium businesses grow or get through hard times.
  
• There are many types, like short-term loans, credit lines, and loans backed by the government.
  
• You need to show business income, history, and a plan to get approved.
  
• Many UK banks and programs are ready to help small businesses.
  
• Avoid borrowing too much or skipping steps during the application.
  

Are you a small business owner in the UK looking for money to help your business? Maybe you need to buy equipment, hire new people, or keep things running smoothly. That’s where SME business loans come in. These loans are made just for small and medium businesses like yours.

SME stands for “Small and Medium Enterprises.” These businesses are super important for the UK economy. They create jobs, support local communities, and drive innovation. But sometimes, even great businesses need extra help to move forward.

They can be a big help—but only if you know how they work. In this blog, we’ll explain what these loans are, who can get them, and how to apply the right way.

What Are SME Business Loans?

An SME loan is money a business borrows from a bank or lender. You can use it to buy new tools, open a shop, or fix cash problems. Unlike a personal loan, this one is for your business, not for your family or home.

The bank will check your business’s money history and how you plan to pay the loan back. If all looks good, they give you the money, and you pay it back little by little.

Types of SME Loans

There are different kinds of SME loans. Some are better for quick help, others are better for big goals.

1. Term Loans
   
2. Credit Line
   
3. Invoice Financing
   
4. Cash Advances
   
5. Government Loans

Term Loans are the most common. You borrow a set amount and repay it in monthly payments over time. These are great for buying big things like machines or making upgrades.

Lines of Credit work more like a credit card. You can borrow what you need, when you need it, up to a limit. You only pay interest on the money you use.

Invoice Financing helps if you’re waiting for customers to pay you. The lender gives you money now based on your unpaid invoices.

Merchant Cash Advances are loans that are paid back through a small percentage of your daily sales, which works well if your income changes day to day.

Government Loans are backed by the UK government. They often have lower interest rates and better terms, especially for new or growing businesses.

Picking the right one depends on what your business needs and how fast you can pay it back.

Who Can Get These Loans?

Not every business can get an SME loan. Here’s what most banks look for:

• Your business is at least 6 months old.
  
• You make a certain amount of money every year.
  
• You or your business has a good credit score.
  
• You have a plan that shows how you’ll use the money.

You don’t need to be a giant company to get a loan. Many lenders help small businesses every day. But they do want to know a few things first.

They’ll check how long your business has been running. Most want at least six months of activity. They’ll also ask how much money you make every year. This helps them know if you can afford the loan payments.

They might also look at your credit score. A good score shows that you pay bills on time. Your business plan matters too—it should explain how you’ll use the money and how you’ll pay it back.

If you can show that your business is steady and has a plan, your chances of getting a loan go up.

How to Apply

Getting an SME loan isn’t hard if you’re ready. Here’s what you should do:

1. Look Around: Compare lenders to find the best one for your needs.
   
2. Get Your Papers: You’ll need things like tax records, profit reports, and your business plan.
   
3. Fill Out Forms: Complete the loan application carefully.
   
4. Wait for Review: The bank will check your info and decide.
   
5. Get Your Money: If approved, the money will come soon—sometimes in just a few days!
   

At MacManus Asset Finance we prioritise quick and efficient customer service. We will provide you with the terms within 5 minutes of a conversation. Once received, your application will be sent to the finance providers within 60 minutes.

Funders have varying service times from 1 hour to 5 days, but most are around 3 days for a decision.

Help from Banks and the Government

There’s lots of support in the UK for small businesses needing loans:

• HSBC’s £15 Billion Fund: For all types of small businesses.
  
• British Business Bank: Helps small businesses get loans from many lenders.
  
• Northern Powerhouse Fund: Offers loans and investments in Northern England.
  

These programs make it easier to get approved—even if your business is new.

Other Ways to Fund Your Business

SME loans are great, but they’re not the only option. At MacManus Finance, we offer a variety of financial products that can also support your business needs.

• Asset Finance – If your business needs new equipment, vehicles, or machinery, asset finance lets you spread the cost over time while using the asset right away.
  
• Invoice Finance – Waiting on customers to pay? Invoice finance lets you unlock cash tied up in unpaid invoices, improving your cash flow fast.
  
• Business Loans – Need a more tailored approach? Our business loans are flexible and built around your goals and repayment capacity.
  

These options can work better than traditional loans, especially if you have specific needs or a different repayment schedule in mind. Let’s find the right solution together.

👉 Explore our finance options

FAQs

Q1: How much money can I borrow as an SME?
You can borrow small or big amounts—some banks offer up to £750,000. It depends on your business and what you need.

Q2: Do I need to pay the money back quickly?
That depends on the loan. Some let you pay over months or years. Others need faster payback.

Q3: Can new businesses get loans?
Yes! Some programs and lenders help startups, especially if you have a good plan.

Q4: Will I need to use my house or car as a guarantee?
Not always. Some loans are unsecured, which means you don’t need to use personal property.Q5: Are there special loans from the government?
Yes. The UK has programs to help small businesses, like British Business Bank and regional support funds.