Business Loan FAQs
Everything SMEs Need to Know
We know applying for a business loan can feel overwhelming. That’s why we’ve put together this comprehensive FAQ guide for UK SMEs. From eligibility and loan amounts to approval times and credit score impact, you’ll find clear answers to the questions business owners ask most.
At Funding Freddie, we believe in making business funding simple, fast, and transparent. If you don’t see your question answered here, get in touch — Freddie’s always ready to help.
Understanding the Basics
General Business Loan Questions
What is a business loan?
👉 A business loan is finance provided to a company, repaid with interest over time. Loans can fund cash flow, growth, equipment, property, or invoices.
Who can apply for a business loan in the UK?
👉 SMEs across all industries — from retail and hospitality to logistics and tech. Some lenders prefer limited companies, but sole traders and partnerships are also eligible.
How much can I borrow?
👉 With Funding Freddie, you can access loans from £50,000 up to £500,000, depending on turnover, trading history, and credit profile.
How quickly can I get approved?
👉 Many SMEs receive approval in as little as 24 hours, with funds available in 48–72 hours.
Will applying affect my credit score?
👉 No. Freddie uses a soft search for eligibility, which doesn’t impact your credit score.
What You Need to Qualify
Loan Eligibility & Requirements
Do I need to be profitable to get a loan?
👉 Not always. Lenders mainly look for steady cash flow and repayment ability.
What documents will I need?
👉 Typically: 3–6 months of bank statements, annual accounts, proof of trading history, and sometimes a business plan (for larger loans).
Can startups apply?
👉 Yes. Startups may qualify for certain products like invoice factoring, equipment finance, or government-backed schemes.
Are there industry restrictions?
👉 Most industries are eligible, but high-risk sectors (e.g., gambling, speculative investments) may have fewer options.
Explore Your Options
Loan Types Explained
What is a working capital loan?
👉 Short-term funding to cover day-to-day expenses like payroll, stock, and supplier invoices.
What is an expansion loan?
👉 Long-term finance to open new premises, hire staff, or launch products/services.
What is equipment financing?
👉 Loans or leasing to spread the cost of tools, machinery, or IT systems.
What is invoice factoring?
👉 Unlock cash tied up in unpaid invoices by selling them to a lender for instant access to working capital.
What is a commercial property loan?
👉 Finance to purchase, refinance, or renovate business premises such as offices, shops, or warehouses.
Know the True Costs
Loan Costs & Repayments
What interest rates can I expect?
👉 Rates vary depending on the lender, loan type, and your business profile. Freddie connects you to multiple offers so you can compare.
How long are repayment terms?
👉 From 6 months for working capital loans to 25 years for commercial property loans.
Are there hidden fees?
👉 No. All lenders on Freddie’s platform are FCA-authorised, and terms are always transparent.
What happens if I repay early?
👉 Many lenders allow early repayment. Some may charge a small fee, but it can reduce interest costs overall.
Understanding the Risks
Security & Risk
Are these loans secured or unsecured?
👉 Both. Smaller loans are often unsecured, while larger ones (e.g., property loans) may require collateral.
What happens if I miss a payment?
👉 Contact your lender immediately. Options like restructuring may be available, but missed payments can affect your credit profile.
Is my data safe with Freddie?
👉 Yes. Your data is encrypted and only shared with FCA-authorised lenders for the purpose of funding your business.
Your Trusted Funding Partner
Why Choose Funding Freddie?
Why not just go to a bank?
👉 Banks are slow, paperwork-heavy, and often decline SMEs. Freddie = fast, flexible, and competitive — lenders compete for your business.
How is Freddie different?
👉 One form → multiple offers → your choice. Simple, transparent, and no obligation.
Do I have to accept an offer?
👉 No. Checking your options is free and commitment-free.
Still Have Questions?
Freddie’s here to help. If you don’t see your question here, reach out via our contact page. We’ll connect you with the right information — and the right funding.
Business Funding Made Simple, Safe & Transparent
Address: Ilford Lane, Ilford, England, IG1 2SN
Email: [email protected]
Phone: 0741 410 7585
Opening Hours: Available 24/7 to answer your questions and guide you.
You can also complete our online eligibility form anytime, 24/7
Funding Freddie is a trading name of Digital Success Blueprint Ltd. Registered in England and Wales. Registered address: 411 Ilford Lane, Ilford, England, IG1 2SN.
Funding Freddie is not a lender. We act as an introducer, connecting SMEs with a panel of carefully selected FCA-authorised lenders. All loan agreements are made directly between the applicant and the lender.