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.
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  • Alternative lenders: can start near 6.9% APR, but may add arrangement or drawdown fees.
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  • Government-backed Start Up Loans: fixed 7.5% interest from 6 April 2026, with no arrangement fee or early repayment charge.
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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.
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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.
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  • Barclays, Lloyds, and NatWest examples in the comparison ranged from 8.5% to 12.24% APR.
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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.
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