Quick Scoop
The current UK business loan rate is usually **from
around 7% APR** , with some established-business lenders advertising rates in
the **6.9% to 8.6% APR** range, while newer or riskier borrowing can be much
higher. The exact rate depends on your trading history, credit profile,
revenue, loan size, and the lender’s fees.
Typical UK rates
- High street banks: around
8.5% to 12.24% APR in the examples reviewed.
[9][1]
- Alternative lenders: can start near 6.9% APR, but may add
arrangement or drawdown fees.
[1] - Government-backed Start Up
Loans: fixed 7.5% interest from 6 April 2026, with no arrangement fee
or early repayment charge.
[1]
What affects the rate
- Your credit score and cash flow.
- How long the business has been
trading.
- Loan amount and repayment term.
- Whether the lender
charges setup, processing, or early repayment fees.
[1]
Quick
examples
- HSBC small business loans show 8.6% APR for loans over
£10,000 and 11.3% APR for loans up to £10,000.
[9] - Barclays, Lloyds,
and NatWest examples in the comparison ranged from 8.5% to 12.24% APR.
[1]
Bottom line
For a strong UK business, a realistic
current borrowing rate is often **about 7% to 12% APR** ; for newer or weaker-
credit businesses, it can be much higher. If you want the cheapest deal,
compare the APR **and** the fees, because those can change the true cost a
lot.
TL;DR: UK business loan rates currently start at about 7% APR,
with many mainstream offers landing around 8.5% to 12% APR, depending on
lender and business profile.
[9][1]