How much can my UK limited company or LLP borrow?

Updated October 2025

Quick answer — typical borrowing ranges for UK limited companies and LLPs

Most established UK limited companies and LLPs can borrow from £10,000 up to several million, with limits driven by turnover, profitability, assets, credit profile, and security. As a rule of thumb, unsecured borrowing often caps at roughly 10–25% of annual turnover, while asset-backed or invoice-based facilities can reach 70–90% of asset or invoice value. Your maximum is always subject to affordability and lender risk appetite.

If your business has at least 12 months’ trading, consistent revenues, and clean credit, you’ll usually see a broader range of options. Younger firms, businesses with uneven cash flow, or those in higher-risk sectors may find lower limits or more security required. LLPs are generally assessed similarly to limited companies, but designated members’ guarantees can still be requested.

For unsecured term loans, a common ceiling is around 1–3 months of revenue, up to £500k for many SMEs with strong credit. Invoice finance can advance up to 90% of eligible B2B invoices, often scaling as you grow. Asset finance frequently covers 80–95% of equipment or vehicle cost, subject to age, condition, and resale values.

At-a-glance ranges

• Unsecured term loans: £10k–£500k typical; up to 10–25% of annual turnover.
• Revolving credit/overdraft: often 5–15% of annual turnover; £10k–£300k common.
• Invoice finance: up to 70–90% of eligible invoice values; facility sizes scale with ledger.
• Asset finance (equipment/vehicles): 80–95% of asset cost; £10k to multi-million for fleets or plant.
• Merchant cash advance: usually up to 100–150% of average monthly card takings.
• Trade finance: up to 80–100% of confirmed supplier costs or purchase orders.
• Growth Guarantee Scheme: often £25k–£2m per business via accredited lenders, subject to scheme rules.

Amounts vary by sector, business model, and security. Affordability frameworks, such as debt service coverage and existing leverage, are pivotal. The maximum a lender could offer is not always the amount your cash flow should sensibly support.

What really determines your borrowing capacity?

Lenders assess risk and affordability first. Your ability to make timely repayments, over the chosen term, at the proposed rate is central to the decision. The following factors tend to have the biggest impact on limits and pricing.

Turnover and cash generation

Higher and more predictable turnover typically supports higher facilities. Many unsecured offers scale to a percentage of annual turnover or 1–3 months’ revenue. Strong gross margins and stable receipts will also help.

Profitability and affordability

Operating profit, EBITDA, and free cash flow shape how much your business can service. Lenders often look for a Debt Service Coverage Ratio of 1.2x–2.0x. Seasonal businesses may need flexible structures or lower gearing.

Credit profile and conduct

Business credit scores, director/member credit files, and bank account conduct all matter. County Court Judgments, arrears, or high utilisation can reduce limits. Many lenders may still consider cases with explanations and evidence of recovery.

Security and guarantees

Providing security usually increases maximum borrowing and reduces cost. Options include debentures, asset charges, invoice assignments, or personal guarantees from directors or designated members. Not all products require personal guarantees, but many do.

Trading history, sector, and concentration risk

12–24 months’ trading with filed accounts is common for larger limits. Some sectors face tighter criteria due to volatility or regulatory factors. Heavy customer concentrations can cap invoice finance advance rates.

Existing debt and covenants

Current obligations, including leases and term loans, affect headroom. New facilities may require consent or intercreditor agreements. Breaching covenants elsewhere can constrain options and amounts.

Typical funding amounts by product — what’s realistic?

Different finance types have different ways to shape a limit. Choosing the right category for your use case can unlock more capacity at a sustainable cost. Here are realistic ranges and how lenders think about them.

Unsecured term loans

Typical limits: £10k–£500k, sometimes higher for strong profiles. Amounts often equate to 10–25% of annual turnover, or around 1–3 months’ revenue. Expect 6–60 month terms, with affordability and credit driving the cap.

Revolving credit facilities and overdrafts

Typical limits: £10k–£300k for SMEs with steady cash flow. Limits frequently align with 5–15% of annual turnover. Useful for short-term working capital, but can be reduced if account conduct weakens.

Invoice finance (factoring or discounting)

Advance rates: 70–90% of eligible invoices; sometimes higher for well-diversified ledgers. Facility limits scale with sales ledger size and turnover. Concentration limits and dispute rates can reduce effective availability.

Asset finance (equipment and machinery)

Typical funding: 80–95% of the asset cost, subject to age and depreciation. Large facilities into the millions are possible for capital-intensive sectors. Sale-and-leaseback can unlock value in owned assets.

Vehicle and fleet finance

Typical funding: up to 100% of vehicle cost for new units; lower for older assets. Limits depend on fleet size, sector, and residual values. Structures include hire purchase, lease, and contract hire.

Merchant cash advance

Typical funding: up to 100–150% of average monthly card takings. Repayment flexes as a percentage of future card sales. Useful for retail and hospitality with strong card receipts.

Trade and purchase order finance

Typical funding: up to 80–100% of supplier invoices with confirmed end buyers. Amounts are driven by purchase orders, gross margins, and end-customer quality. Useful for importers and manufacturers bridging supplier terms.

Growth Guarantee Scheme

Facility sizes commonly range from £25k to £2m via accredited lenders, subject to scheme rules and eligibility. The guarantee supports the lender, not the borrower, and normal affordability checks apply. See official guidance from the British Business Bank for current details and participating lenders.

Worked examples (illustrative only)

Example A: A £2.4m turnover engineering Ltd with solid margins and clean credit might see unsecured offers around £200k–£400k. If it runs a £600k sales ledger, invoice finance could add a £420k–£540k availability at 70–90% advance.

Example B: A hospitality LLP with £120k monthly card takings could see a merchant cash advance around £120k–£180k. If refurbishing, asset finance could fund 80–95% of eligible fit-out equipment cost.

Estimate your maximum borrowing — quick steps and checks

Use these practical steps to form a sensible starting estimate before you submit an enquiry. This helps align expectations and speeds up matching. Keep in mind each lender’s criteria will differ.

Step-by-step quick estimator

1. Unsecured baseline: take 10–25% of last year’s turnover as a rough ceiling.
2. Cash flow test: check annual debt service below 50–70% of free cash flow.
3. Invoice finance: multiply your eligible ledger by 70–90% for availability.
4. Asset finance: assume 80–95% of new equipment cost; lower for older assets.
5. Card takings: use 1.0–1.5x average monthly card revenue for a cash advance.

If multiple products apply, avoid double counting the same cash flows. Choose the mix that best aligns to use-of-funds and repayment visibility. Lenders may cap combined exposure to maintain prudent leverage.

Documents that support higher limits

• Filed accounts and current management accounts with margin detail.
• Last three to six months’ business bank statements.
• Up-to-date aged debtor and creditor reports for invoice finance.
• Asset schedules, quotes, or pro formas for equipment purchases.
• VAT returns, pipeline or purchase orders, and key contracts.

Clear evidence of performance, controls, and governance improves outcomes. Consistent banking conduct and on-time tax submissions also build trust. Be ready to explain any anomalies or one-off events.

Common pitfalls that reduce borrowing

• Overestimating affordability, especially with variable revenues.
• Heavy customer concentration without credit insurance or mitigants.
• Missing or outdated financials, or inconsistent management info.

Where you need working capital for a smaller operation, explore our page on small business loans to see typical options. For a no-obligation view of potential eligibility and amounts, submit a Quick Quote. You’ll be matched with lenders or brokers who are active in your sector.

Improve eligibility, compare options, and take your next step

Increasing your borrowing capacity is often about improving the quality and predictability of cash flows. Strong financial controls and well-chosen security can materially enhance limits. Here are practical actions that help.

Ways to increase capacity before you apply

• Tighten debtor days and implement credit control to stabilise cash inflows.
• Prepare clean management accounts with clear, defensible assumptions.
• Consider asset-backed routes if unsecured headroom is tight.
• Reduce short-term liabilities or refinance to smoother amortisation.
• Address credit file issues and document any resolved disputes.

If you run seasonal operations, align the facility type with your working capital cycle. Revolving or invoice-backed solutions may fit better than long fixed repayments. Transparent plans and forecasts reassure underwriters.

How Best Business Loans helps

Best Business Loans is an independent introducer and matching platform, not a lender. We use AI-driven profiles and a trusted network to introduce you to relevant providers. It’s free to submit an enquiry and there’s no obligation to proceed.

Tell us your business details, the purpose, and the approximate amount you require. Our system flags suitable categories and active lenders or brokers in your sector. You compare options and decide what’s best for your cash flow.

Compliance and fair-use notices

We aim to keep information clear, fair, and not misleading. Figures and ranges here are illustrative, not offers, and may change. Approval, rates, and amounts depend on lender criteria, your credit profile, and affordability.

We do not provide financial advice or lend directly. Eligibility and availability can vary by location and regulation. If you need personalised advice, please consult a qualified adviser.

Summary: key takeaways

• Unsecured limits often sit around 10–25% of annual turnover.
• Invoice finance and asset finance can reach 70–90% of assets or invoices.
• Affordability, security, credit, and trading history set the ceiling.
• Right-fit product selection can unlock higher, safer funding.
• Get a free Quick Quote for an eligibility view matched to your sector.

FAQs

How much can a new business borrow?
Early-stage firms usually see smaller unsecured limits, and many lenders require at least 12 months’ trading. Asset-backed solutions or invoice finance against confirmed receivables may offer more capacity than pure unsecured at this stage.

Do lenders require personal guarantees?
Many unsecured facilities require director or designated member guarantees. Asset-backed facilities can still request guarantees, but strong security sometimes reduces or removes this requirement.

Will poor credit stop me borrowing?
Adverse credit narrows options and can lower limits, but it doesn’t always mean “no”. Clear explanations, improved conduct, and security can help mitigate historic issues.

What will I need to provide?
Expect filed accounts or management accounts, recent bank statements, and identification. Product-specific items like aged debtor reports or asset quotes are often required.

How fast can funds arrive?
Simple unsecured facilities can be quick if documents are ready. Asset and invoice finance may take longer initially, but can scale and draw down rapidly once live.

What is the Growth Guarantee Scheme?
It’s a government-backed guarantee to lenders, designed to support SME finance. It doesn’t remove your responsibility to repay and normal checks apply; see the British Business Bank for current rules.

Does Best Business Loans charge borrowers?
It’s free to submit an enquiry. If any fees apply via a lender or broker you choose, these will be disclosed before you proceed.

Who is this service for?
Established UK limited companies and LLPs. We do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages.

Next step?
Complete a Quick Quote for a no-obligation eligibility view. We’ll introduce you to suitable providers so you can compare and decide.