What interest rates do UK business loans typically offer?

Business loan rates in the UK vary significantly based on the lender, loan size, and creditworthiness of the business. Rates typically range from 3% to 20%+ APR for unsecured loans.

Can I repay a business loan early?

Most business loans allow early repayment, but many lenders charge an early repayment fee (often 1–2 months' interest). Check your loan agreement before overpaying.

Is business loan interest tax deductible?

Generally yes — interest on business loans is an allowable deduction against your business profits for corporation tax or income tax purposes, provided the loan is used wholly for business.

Business Loan Calculator

Calculate your monthly repayment and total interest cost for a fixed-rate business loan using the standard amortisation formula.

How it's calculated

Monthly payment = P × (r(1+r)ⁿ) ÷ ((1+r)ⁿ − 1)
where P = principal, r = monthly rate, n = term in months.

Frequently Asked Questions

What interest rates do UK business loans typically offer?: Business loan rates in the UK vary significantly based on the lender, loan size, and creditworthiness of the business. Rates typically range from 3% to 20%+ APR for unsecured loans.
Can I repay a business loan early?: Most business loans allow early repayment, but many lenders charge an early repayment fee (often 1–2 months' interest). Check your loan agreement before overpaying.
Is business loan interest tax deductible?: Generally yes — interest on business loans is an allowable deduction against your business profits for corporation tax or income tax purposes, provided the loan is used wholly for business.