Loans for New Businesses
Get the right loan to launch, grow, and strengthen your business—without the stress.
New Business Loans: What You Need to Know
Starting a business is exciting, but it’s also overwhelming. One of the biggest challenges? Finding funding.
You need money to get off the ground, cover costs, and grow. But as a new business, securing a loan can feel impossible. Banks hesitate. Lenders ask for trading history. And the whole process can be confusing.
The good news? You have options. With the right approach, you can secure a new business loan and set your business up for success. Let’s break it down.
Why Are New Business Loans Hard to Get?
Lenders see new businesses as risky. Here’s why:
- No trading history – Lenders prefer businesses with proven income.
- No credit score – Your business hasn’t had time to build credit.
- Uncertain future – Startups can struggle in the early months.
This doesn’t mean you won’t get funding. It just means you need the right strategy. At First Oak Capital it’s our mission to get you the right type of business financing with the right lender, so you have the best chances of approval at the best rates available.
What Types of New Business Loans Are Available?
There’s no one-size-fits-all loan. The right option depends on your business type, financial situation, and future plans. Below are the most common types of new business loans, along with their benefits and drawbacks.
1. Start-Up Loans
Government-backed loans designed for new businesses. They offer fixed interest rates and repayment terms of up to five years. Ideal if you need funding but don’t want to give up equity. You can learn more about government-backed options through the British Business Bank.
2. Unsecured Business Loans
No collateral needed. Approval depends on your credit score and business plan. Great for businesses that don’t have assets to offer as security.
3. Secured Business Loans
Backed by assets like property or equipment. These loans offer lower interest rates but carry the risk of losing your asset if you can’t repay.
4. Merchant Cash Advances
A flexible loan tied to your card sales. You repay a percentage of daily transactions instead of fixed monthly payments. Works well for retail and hospitality businesses.
5. Invoice Finance
If you issue invoices, you can borrow against them. Instead of waiting for customers to pay, you get cash upfront. Ideal for businesses with long payment cycles.
6. Revolving Credit Facilities
Like an overdraft, but designed for businesses. You can borrow, repay, and borrow again within an agreed limit. Useful for managing cash flow.
With so many options available, choosing the right new business loan can feel overwhelming. Choosing the right loan is key to your business’s success. Whether you need cash flow support, funding for equipment, or a flexible credit line, there’s a solution for you. Learn more about business loans here or contact us today for friendly, expert guidance.
How to Get Approved for a New Business Loan
Approval isn’t just about applying—it’s about preparation. Here’s how to improve your chances:
1. Have a Solid Business Plan
A strong business plan is one of the most important factors in getting approved for a new business loan. Lenders need to see that your business has a clear vision and a realistic path to profitability. If you’re unsure how to create one, the UK Chambers of Commerce offers business planning support, networking opportunities, and expert advice.
2. Improve Your Credit Score
Even if your business is new, lenders check your personal credit. A strong credit score makes approval easier.
3. Offer a Personal Guarantee
Many lenders require this. If your business can’t repay, you’ll be personally responsible.
4. Start Small
If you’re struggling to get approved, start with a smaller loan. Prove your reliability, then apply for more later.
5. Work with a Finance Broker
Instead of applying blindly, let a broker (like us!) match you with the right lender.
Mistakes That Could Cost You a Loan
New businesses often make these costly errors:
🚨 Applying too many times – Multiple applications can hurt your credit score.
🚨 Ignoring cash flow – Lenders want to see that you can make repayments.
🚨 Not checking terms – Hidden fees and high interest rates can hurt long-term.
🚨 Waiting too long – Plan ahead. Don’t wait until you’re desperate for funds.
Getting a new business loan isn’t always easy, but it’s possible. Lenders worry about risk, but with preparation, you can improve your chances. A solid business plan, good credit score, and the right loan type can make all the difference.
Instead of applying blindly, work with a finance expert who understands new businesses. The right loan could be the key to unlocking your business’s future.
How We Can Help
At First Oak Capital, we know how tough it is to get a new business loan. That’s why we make it easier, here’s what we do:
- Find the right lender for you.
- Help you prepare your application.
- Improve your approval chances.
- We get you the best deal available.
Unlike other brokers, we won’t ignore you just because you’re a new business. We’ll guide you through the process, answer your questions, and help you secure the funding you need. Call us today or complete the form on our website to get started. Let’s build your business together.
Q: Can I get a business loan with no trading history?
A: Yes, but it depends on the lender. A strong business plan and personal guarantee help.
Q: Do I need a good credit score?
A: A higher score helps, but some lenders accept lower scores with additional security.
Q: How long does approval take?
A: Some loans take days, others take weeks. It depends on the lender and loan type.
Q: What’s the best loan for a new business?
A: It depends on your needs. Start-up loans are great for many, but invoice finance or merchant cash advances may work better for certain industries.
Q: Should I use a finance broker?
A: Yes. In fact, things are much easier if you do. One of our friendly brokers will connect you with lenders who are open to new businesses, saving you time and stress.
