Last updated: 06 Nov 2026

free business loan eligibility check

Check your business loan eligibility

Business loan eligibility depends on how long you've been trading, your turnover, your credit profile and whether you can comfortably afford the repayments.

See which of our 130+ lenders could fund your business
No documents needed to check your eligibility
Free support from a dedicated funding specialist

Business loan calculator

Enter the loan terms below to see your estimated repayments.

How much do you want to borrow?

£50,000

£1,000£2 million

How long do you want to pay your loan back for?

2 years

3 months10 years

What is the annual interest rate?

17%

0.1%99%

Please note that some lenders may charge additional arrangement fees, which are not included in this calculation and should be considered when comparing total borrowing costs.

Loan amount£50,000

Total interest£9,333

Annual interest rate17%

Monthly interest rate1.417%

Daily interest rate0.0466%

Factor rate1.1867

Flat rate9.33%

Effective APR17.00%

Daily repayment£82.41

Annual repayment£29,667

£2,472 monthly repayment

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130+ business lenders on our panel
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What determines your business loan eligibility?

enders decide your business loan eligibility by weighing five main factors together, rather than any single number.

What lenders look at	What they want to see	Typical requirement
Time trading	A track record that shows the business is established	6 to 12 months with alternative lenders, 2 years or more with most high street banks
Turnover	Regular income flowing through the business	From £5,000 with some alternative lenders, typically £100,000 or more with banks
Affordability	Cash flow left over after existing costs and debts	Enough to cover the new repayments at least twice over
Credit history	A business and personal credit file with few missed payments	Fair to good, with options for poor credit
Location and age	A UK business run by adults	Registered and operating in the UK, with directors aged 18 or over

A shortfall in one area doesn't rule you out, because each lender weighs these factors differently. Strong cash flow can make up for a shorter trading history with some lenders, while others will look past a weaker credit file if turnover is steady. Our business loan eligibility criteria guide explains how each factor is assessed.

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How does your credit score affect business loan eligibility?

A good credit score widens the number of lenders you're eligible with and can unlock lower rates, but it isn't the only route to funding. Many lenders on our panel will consider a fair or limited credit history if your turnover and cash flow support the repayments.

Lenders usually check your business credit score and the personal credit of the directors or owners. Personal credit carries more weight for sole traders, newer companies and loans backed by a personal guarantee. If your credit history is holding you back, there are still bad credit business loans from specialist lenders.

How much could my business be eligible to borrow?

Most lenders will let your business borrow up to around 25% of your last annual turnover through an unsecured loan. A business turning over £200,000 a year, for example, could typically be eligible for up to around £50,000, as long as its cash flow covers the repayments after existing debts, dividends and other regular costs.

Annual turnover	Typical borrowing range
Under £50,000	£1,000 to £25,000
£50,000 to £150,000	£10,000 to £40,000
£150,000 to £500,000	£25,000 to £150,000
£500,000 and above	£100,000 to £5 million and above

These ranges are a general guide only, and offering security such as property or equipment can raise the amount. Our business loan calculator shows what the repayments would be.

Funding eligibility checklist with checkmarks and magnifying glass icon

Are new businesses and sole traders eligible for a business loan?

New businesses and sole traders can both be eligible for a business loan, though trading history decides how many lenders you can choose from. Sole traders, partnerships and limited companies are all considered across our panel.

Businesses trading for under 12 months are usually limited to government backed start up loans, which offer £500 to £25,000.
Businesses trading for 6 to 12 months can be considered by some alternative lenders, particularly with steady monthly income.
Businesses trading for 2 years or more are usually eligible with high street banks as well as most alternative lenders.

Check your eligibility

How do I check my business loan eligibility?

You can check your business loan eligibility by signing up for a free Capitalise account and telling us about your business and the funding you need. You don't need any documents at this stage.

Capitalise uses your Experian business credit profile and, for limited companies, your Companies House data to build a picture of your business, then match it against the lending criteria of our panel of 130+ lenders. You'll see which loans your business could be eligible for and estimated monthly repayments, without applying to lenders one by one and risking declines on your file.

Check your eligibility

Smartphone displaying a business funding app interface with "Apply now" button. Icons of cash, coins, and a smiling person wearing glasses.

How can I improve my business loan eligibility?

You can improve your business loan eligibility by showing lenders steady income, a clean credit file and repayments your business can clearly afford. A few changes in the months before you apply can make a real difference:

Check your business credit report and ask for any errors to be corrected.
File your accounts and confirmation statement at Companies House on time.
Pay suppliers and existing credit on time to build a stronger payment history.
Reduce or consolidate existing debt so more of your cash flow is free for new repayments.
Ask for an amount that sits comfortably within your turnover and cash flow.

Our guide to the 8 ways to improve your business credit score covers each step in more detail.

Check your eligibility

What happens after I check my eligibility?

Talk to your funding specialist
A dedicated specialist talks you through the loans you're eligible for and which lenders are most likely to approve you.
Gather your documents
If you decide to go ahead, your specialist tells you what each lender needs, usually recent bank statements, accounts and ID, and builds your application for you.
Receive your funding
Once you accept an offer, the lender releases the funds to your business account.