What is a Business Term Loan?

A business term loan is a fixed lump sum borrowed from a lender and repaid over an agreed period with interest. Repayments are typically fixed monthly. Term loans are available from 3 months to 25 years and are one of the most widely used forms of business finance in the UK.

You borrow a fixed amount upfront — from as little as £5,000 to several million pounds

Repayments are fixed monthly over the agreed term — short (up to 2 years), medium (2–5 years) or long (5+ years)

Interest is calculated on the outstanding balance and included in your monthly payment

At the end of the term the loan is fully repaid — no revolving balance

Pros

• Fixed repayments make cash flow planning straightforward
• Available across a wide range of amounts and terms
• Can be secured or unsecured depending on lender and amount
• Interest rates are often lower than short-term products like MCAs

Things To Consider

• Early repayment charges may apply
• Secured loans require assets as collateral
• Longer underwriting process than some alternative products
• Fixed repayments continue regardless of revenue fluctuation

How Seven Hills Capital Group Could Help Your Business

Every business situation is different. The illustrative examples on our case studies page are based on common scenarios we see from UK business owners and landlords - showing how the right finance product, found through a whole-of-market broker, can make a real difference.

How much can I borrow with a business term loan?

Term loans are available from around £5,000 to several million pounds depending on the lender, your trading history and the security available. Most SME term loans fall between £25,000 and £500,000.

Do I need security for a business term loan?

Not always. Unsecured term loans are available, typically up to £250,000. Above that, lenders often require a personal guarantee or asset security. We will always explain exactly what security is required before you proceed.

How long does it take to get a business term loan?

This depends on the lender and the amount. Some alternative lenders can approve smaller unsecured term loans within 24–48 hours. Larger or secured loans typically take 2–4 weeks. We know which lenders move fastest for which profiles.

* Representative APR 9.9% (variable). All finance is subject to status and lender criteria.

Can I get a term loan if my bank has turned me down?

Yes, in many cases. High street banks apply rigid criteria. We have access to alternative lenders and specialist providers with wider credit appetites. A bank refusal is not the end of the road — all lending is subject to status.

What is the difference between a secured and unsecured term loan?

A secured term loan requires collateral — property, equipment or a personal guarantee — which reduces the lender's risk and typically results in a lower rate. An unsecured loan requires no collateral but usually carries a higher rate and lower maximum amount.