Limited company loans provide UK businesses with access to funding for working capital, stock, equipment, refurbishment, expansion and other business costs.
There are several ways a limited company can raise finance, including secured and unsecured business loans, merchant cash advances, invoice finance and asset finance. The right option depends on your company’s turnover, trading history, credit profile, cash flow and reason for requiring funding.
PDQ Funding helps established UK companies explore alternative business funding. If your business takes regular debit or credit card payments, you may be able to access between £10,000 and £400,000 through a merchant cash advance, subject to approval.
What Is a Limited Company Loan?
A limited company loan is business finance provided to a company rather than an individual.
Companies commonly use business finance to:
- Purchase stock
- Improve cash flow
- Buy equipment or machinery
- Refurbish premises
- Recruit employees
- Fund marketing
- Open additional locations
- Support business expansion
- Cover unexpected expenditure
Lenders and finance providers normally assess the financial position of the company before deciding whether to provide funding.
This can include turnover, trading history, profitability, cash flow, credit history and existing borrowing.
Some lenders may also require the directors to provide a personal guarantee.
Can a Limited Company Get a Business Loan?
Yes. UK limited companies can apply for a range of business finance.
However, being incorporated does not automatically mean a company will qualify.
Providers may consider:
- How long the company has been trading
- Annual and monthly turnover
- Profitability and cash flow
- Business credit history
- Existing financial commitments
- Recent bank statements
- The purpose of the funding
Established companies with consistent turnover will generally have more options than newly incorporated businesses with little trading history.
Being declined by a bank also does not necessarily mean alternative business funding is unavailable.
Types of Finance for Limited Companies
There are several ways a limited company can raise business finance.
Unsecured Business Loans
An unsecured business loan allows a company to borrow without providing a specific asset as security.
The lender may assess turnover, profitability, cash flow and credit history. A personal guarantee may still be required even where the borrowing is described as unsecured.
Secured Business Loans
Secured business finance uses an asset, such as commercial property or another suitable business asset, as security.
It can potentially provide access to larger amounts, although the secured asset may be at risk if the company cannot maintain repayments.
Merchant Cash Advance
A merchant cash advance provides business funding against future debit and credit card sales.
Instead of making the same fixed loan repayment each month, an agreed percentage of future card sales is used to repay the advance.
This means repayments respond to trading levels: when card sales increase, more is repaid; when sales fall, less is repaid.
PDQ Funding can help eligible businesses explore merchant cash advances between £10,000 and £400,000, subject to approval.
Invoice Finance
Invoice finance allows businesses to release cash tied up in unpaid B2B invoices rather than waiting for customers to pay.
It can be particularly useful for companies operating on 30, 60 or 90-day payment terms.
Asset Finance
Asset finance can help companies acquire vehicles, machinery, technology and other business equipment without necessarily paying the full cost upfront.
How Much Can a Limited Company Borrow?
There is no single borrowing limit for a limited company.
The amount available will depend on the type of finance and the financial circumstances of the business.
Providers may consider:
| Business Factor | Why It Matters |
|---|---|
| Trading history | Longer-established businesses provide more financial history to assess |
| Turnover | Higher sustainable turnover may support greater funding |
| Cash flow | Helps determine whether repayments are affordable |
| Credit history | Can affect eligibility and available terms |
| Existing borrowing | Existing commitments can affect affordability |
| Assets | May provide access to secured finance |
| Card turnover | Particularly important for merchant cash advances |
| Unpaid B2B invoices | May make invoice finance an option |
For merchant cash advance funding arranged through PDQ Funding, eligible businesses may be able to access between £10,000 and £400,000, depending on card turnover and the provider’s assessment.
Limited Company Loan Eligibility
Eligibility varies between lenders and finance providers.
Traditional lenders may assess company accounts, bank statements, profitability, credit history and existing borrowing.
Alternative finance providers can use different criteria.
For a merchant cash advance, one of the most important considerations is usually the level and consistency of debit and credit card sales.
Applications are always subject to individual assessment and approval.
Can I Get a Limited Company Loan With Bad Credit?
Potentially.
A poor credit history does not automatically prevent a company from obtaining business finance, but it can reduce the number of providers willing to lend and may affect the terms available.
Some alternative finance providers place greater emphasis on current turnover, cash flow or card sales rather than relying solely on traditional credit scoring.
Previous credit problems or a bank decline therefore do not necessarily mean all funding options are closed.
However, acceptance is never guaranteed.
Do Limited Company Loans Require a Personal Guarantee?
Some business finance agreements require a personal guarantee; others may not.
A personal guarantee can make the director or guarantor personally responsible for specified company borrowing if the company cannot repay it, subject to the terms of the guarantee.
Directors should understand exactly what they are agreeing to before providing one and obtain independent advice where appropriate.
It is also important to remember that unsecured business finance does not automatically mean no personal guarantee.
Can a New Limited Company Get a Loan?
New companies can find it more difficult to obtain conventional business finance because there is limited trading history for a lender to assess.
Some start-up funding options are available, but established companies generally have access to a wider range of commercial finance.
Merchant cash advances are normally more suitable for established businesses already generating consistent debit and credit card sales.
Limited Company Loan vs Merchant Cash Advance
A traditional business loan and merchant cash advance can both provide additional working capital, but they operate differently.
| Business Loan | Merchant Cash Advance | |
|---|---|---|
| Funding | Agreed loan amount | Advance against future card sales |
| Repayments | Usually scheduled | Percentage of card sales |
| Monthly amount | Usually predetermined | Changes with card turnover |
| Suitable businesses | Wide range | Businesses taking regular card payments |
| Security | Depends on facility | Depends on provider |
| Assessment | Financial and credit assessment | Strong emphasis on card turnover |
| Speed | Varies | Can potentially be arranged quickly |
A merchant cash advance is not a traditional business loan.
For businesses with fluctuating card sales, however, the repayment structure can provide an alternative to fixed monthly loan repayments.
How Does a Merchant Cash Advance Work?
A merchant cash advance provides an agreed amount of funding that is repaid using a percentage of future card sales.
Suppose a restaurant, retailer or other card-taking business receives an advance.
Rather than agreeing to the same monthly repayment regardless of turnover, an agreed percentage of card transactions goes towards repayment.
A strong trading month therefore results in more being repaid.
During a quieter month, repayments reduce in line with card sales.
This structure can suit businesses where turnover naturally fluctuates throughout the year.
Which Businesses Can Use a Merchant Cash Advance?
Merchant cash advances are particularly suited to established businesses that receive regular debit and credit card payments.
This can include:
- Restaurants
- Pubs and bars
- Hotels
- Cafés
- Retail businesses
- Online retailers
- Hair and beauty businesses
- Dental practices
- Garages
- Leisure businesses
Eligibility depends on trading history, card turnover and the individual provider’s assessment.
How Quickly Can a Limited Company Get Funding?
Funding timescales vary significantly between different types of business finance.
More complex secured facilities may require additional underwriting, documentation and valuations.
Alternative funding can sometimes be arranged considerably faster.
For eligible merchant cash advance applications, funding may potentially be available within 24 hours following approval and completion of the required process.
Actual timescales depend on the application and provider.
Why Use PDQ Funding?
PDQ Funding helps established UK businesses explore alternative funding options when additional working capital is required.
For eligible card-taking businesses, merchant cash advance funding can provide:
- £10,000 to £400,000 in potential funding
- Repayments linked to card sales
- A straightforward application process
- Fast funding decisions where possible
- Funding potentially available within 24 hours following approval
- An alternative to conventional fixed-repayment business borrowing
PDQ Funding is a broker, not a lender. Applications are subject to approval, eligibility and the individual terms offered by the finance provider.
Apply for Limited Company Funding
If your limited company requires additional working capital and receives regular debit or credit card payments, speak to PDQ Funding about the funding options that may be available.
We can review the basic circumstances of your business and explain whether a merchant cash advance could be suitable.
The amount and terms available will depend on your company’s circumstances and the finance provider’s assessment.
Check how much funding your business could qualify for today.
Limited Company Loans FAQs
Can I borrow money through my limited company?
Yes. A limited company can potentially obtain finance in its own name, subject to the lender or finance provider’s eligibility requirements.
What credit score does a limited company need for a loan?
There is no universal credit score required for a limited company loan. Providers use different criteria and may consider company credit history, turnover, cash flow, trading history and, in some circumstances, the directors.
Can a limited company get finance after being declined by a bank?
Potentially. Alternative finance providers use different underwriting criteria, so a bank decline does not necessarily mean that all business funding options are unavailable.
Can I get a limited company loan without a personal guarantee?
Potentially, although this depends on the finance provider, facility, amount required and financial strength of the company. Unsecured finance does not necessarily mean that no personal guarantee will be required.
Is a merchant cash advance a business loan?
No. A merchant cash advance is an alternative form of business funding based on future card sales rather than a conventional business loan.
How much funding can PDQ Funding arrange?
Eligible businesses may be able to access merchant cash advance funding of between £10,000 and £400,000, subject to approval and provider criteria.
How quickly can I receive business funding?
Eligible merchant cash advance applications may potentially receive funding within 24 hours following approval and completion. Actual timescales vary between applications and providers.