Last updated: 07 Jul 2026

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Long term business loans

A long term business loan gives your business a lump sum to repay over 2 to 10 years or more, with lower monthly costs than short term finance.

  • Check your eligibility, no affect to your credit score

  • Quickly apply online and compare 130+ lenders

  • Get support from a funding expert

  • Borrow larger amounts and spread the repayments over time

TRUSTED BY 200,000+ UK BUSINESSES

  • £2bn in funding approved

  • Regulated by the FCA since 2016

  • 130+ UK business lenders

Why get a long term loan?

  • Borrow larger amounts

    Borrow larger amounts Access the funds you need to really grow your business.

  • Lower interest rates

    With a longer repayment term, interest rates are often more competitive.

  • Lower monthly repayments

    Spread the cost of your loan to make repayments more manageable.

  • Flexible use

    Use the funds for a wide range of business needs, from purchasing a property, to covering costs.

What is a long term business loan?

A long term business loan is a type of funding that provides your business with a lump sum, which you repay over several years. The repayment period typically ranges from 24 months to 5 years, although some may have even longer terms. This means your monthly repayments (including both the loan amount and interest) will be lower than those of short term loans as they’re spread out, making it easier on your cash flow.

Long term loans are usually only available to businesses with a strong financial history, a good business credit score, and/or assets to secure against the loan.

How does a long term business loan work?

A long term business loan gives your business a lump sum upfront, which you then repay in fixed monthly instalments made up of the loan amount (the principal) and interest. The exact length of the loan, the rate you're offered and whether security is required all depend on the lender and your business's financial profile, but the underlying structure is the same: borrow once, repay steadily over an agreed number of years.

Long term business loan rates, terms and amounts at a glance

Secured long term business loan

Unsecured long term business loan

Typical amount

£26,000 up to £1 million or more

£1,000 up to £500,000

Typical term

2 up to 25 years (commercial mortgages can run longer)

2 up to 7 years

Typical rate

Around 6% to 10% APR for stronger applicants

Around 9% to 25%+ APR depending on risk

Security needed

Yes, an asset such as property, equipment or invoices

No, though a personal guarantee is usually required

Figures are illustrative and based on typical UK market ranges as of mid 2026. Your actual rate, term and loan size will depend on your turnover, trading history and credit profile, so use this table as a guide rather than a quote. You can get a more precise estimate for your business with our business loan calculator.

Am I eligible for a long term business loan?

To be eligible for a long term business loan, you generally need to:

  • Have been trading for 2 or more years

  • Have a good business credit score

  • Be based in the UK

Long term loans are riskier for lenders than short term finance because they're repaid over a longer period, which makes a business's future financial stability harder to predict. To offset that risk, lenders tend to apply stricter criteria, and stronger applicants with a solid trading history are more likely to qualify for the best rates. If your business hasn't been trading for long, offering an asset as security can still help you access long term finance. If you don't meet the criteria, there are alternative funding options available, and one of our funding specialists can talk you through them.

What can a long term loan be used for?

  • Expanding your business

    Open a new shop, increase office space, or launch a new product.

  • Purchasing business assets

    Buy a property, machinery, vehicles, or technology.

  • Covering operational costs

    Pay for staff, manage cash flow, and keep your business running smoothly.

  • Refinancing existing debt

    Swap expensive short term loans for a more manageable long term loan.

What are the advantages and disadvantages of a long term business loan?

Advantages

Disadvantages

Lower monthly repayments, since the cost is spread over a longer period, easing pressure on cash flow.

A long term commitment, which may not suit a business whose financial position could change significantly.

Higher borrowing limits than most short term products.

You may pay more in total interest over the life of the loan, even if the annual rate is lower than a short term equivalent.

Many long term loans have fixed rates, so your monthly payment stays the same and is easier to budget for.

Often requires security, such as a personal guarantee or a business asset.

What interest rates come with a long term loan?

Interest rates on long term business loans typically run from around 6%+ APR for secured lending to 25%+ APR for higher risk unsecured deals, and depend on the lender, your business's financial health, and whether you're offering an asset as security. Secured loans generally carry lower rates because the lender has collateral to fall back on, while unsecured loans are quicker to access but cost more to reflect the extra risk to the lender.

Long term loans usually have a lower annual rate than short term loans, but because you're repaying over more years, the total interest paid over the life of the loan can still end up higher. It's worth comparing the total cost of borrowing, not just the headline rate, before you commit.

What are the different types of long term loans?

Loan type

Description

Asset finance

Used to buy business assets like machinery or vehicles, these loans are secured against the asset itself.

Commercial mortgage

A loan to purchase or refinance commercial property. These loans will require a deposit and will be secured against the property itself. Term lengths of up to 25 years are available.

Unsecured long term loans

These loans do not need a business owner to provide security in the form of an asset or property. Instead the lender will use the business’ credit score, financial health and revenue to assess affordability. This offers faster access to funds, but usually comes with higher interest rates than secured. 

Secured long term loans

These loans require collateral (such as property or assets), as security. They usually offer lower interest rates and higher borrowing limits than unsecured long term loans.

How to apply for a long term loan with Capitalise

Here's how it works to get a long term loan: 

  1. Sign up and check your eligibility for free on our secure platform, with no effect to your credit score.

  2. Start your funding application online, answering a few questions about your turnover and how much you want to borrow.

  3. Our platform matches you with the lenders from our panel of 130+ most likely to approve your application.

  4. A dedicated funding specialist guides you through the process, including which documents you'll need and how to package your application.

  5. Once your application is ready and you've given approval, we send it to multiple lenders for review.

  6. If approved, the funds land in your business bank account.

  7. You repay the loan, including interest, in monthly instalments over the agreed term.

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Frequently asked questions