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Business loans

Our flexible business loans can support the full business lifecycle from start-ups and growing businesses, to succession transactions including employee buy-outs

How do business loans work?

A business loan allows a company to borrow a lump sum of money, which can be used for everything from staffing costs, buying stock or equipment to buying a business, which is then paid back over time with an agreed-upon amount of interest.

We offer flexible finance to companies based in Wales, or to those willing to relocate. Whether you're a start up looking to make those first steps or a property developer looking for help to make a project happen, speak to us today or apply online.

Through the Wales Tourism Investment Fund we can also support distinctive, stand-out Tourism projects that align with the priorities of Welsh Government. Projects may include high quality, innovative products, all weather attractions, distinctively Welsh visitor focused experiences, innovative cultural or heritage projects, unusual places to stay and flagship attractions.

 

Commonly asked questions about business loans

To find out if you can get a business loan, take five minutes to run through our business eligibility checker. Or, if you'd like to speak to one of our team, please get in touch

Business loans are more often than not loaned against a business, not an individual, so a business loan shouldn't affect a business owner's mortgage application. And this is the case with our loans. We carry out 'soft credit searches' on individuals involved in the running of the business, which means no footprint is left on the credit file for other lenders to see.

However, proprietors of non-limited businesses are personally responsible for any debts within the business. Any default on a business loan could affect their personal financial situation.

Similarly, if you provide a personal guarantee for a limited company loan, you are personally liable for the amount guaranteed which can have an affect on your personal financial situation if a lender relies on that guarantee for repayment of the loan.

A personal guarantee is a legal 'promise to pay' and may be required from individuals when a finance provider, such as Development Bank, lends to an incorporated business. If a business is unable to meet the repayments on the loan,  a personal guarantee means the individual may become responsible for these repayments.

These can come in two forms: 

  • An unsecured or unsupported personal guarantee - meaning the personal guarantee isn't secured against a personal asset
  • A secured personal guarantee which is a personal guarantee supported by a legal charge over an asset.

As we price on risk, a secured personal guarantee would generally lower the risk to us and therefore lower the cost of borrowing to the lender.

Property developers can get finance from £150,000 - £6 million to help with short-term residential, mixed-use, and commercial property developments. 
 

Absolutely! We help start up businesses with micro loans up to £100k, or if you need a bigger cash injection, we offer large business loans up to £10 million. 

We work with 18-30 year olds with a business in Wales to help them grow. From delis and bakeries to space-tech labs, we can help your business with a repayable loan. Find out more about finance for young entrepreneurs.

Business grants 

Our loans can be combined with grants from other providers to give you the complete funding package you require.

Read our guide on finding a grant provider in Wales.