Nationwide business loan: what’s available and alternative options

Nationwide is a trusted name in UK banking – but there are actually two providers who you might think of when it comes to business loans. Whilst Nationwide Building Society does not directly provide business loans, Nationwide Finance, a separate entity, offers a range of business finance products to UK businesses, including Nationwide small business loans. 

These business loans are designed to help businesses manage working capital, invest, and grow their operations. Financing can be used for a range of business purposes, from expanding inventory to upgrading premises.

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Nationwide business loans

Nationwide Finance business loans cater primarily to limited companies and typically require personal guarantees and legal charges against personal or business property. 

Nationwide Finance mainly offers secured loans, although unsecured options are usually available to larger, more established entities such as listed companies, FTSE 250 firms, charities, and other similar organisations.

Key features of Nationwide Finance business loans:

• Loan amounts: loans range from £6,000 to £10 million, making them suitable for a wide variety of business sizes and needs.
• Approval time: decisions can be made within as little as 2 hours, with funds potentially available within 24 hours of approval.
• Security requirements: secured loans require collateral, such as property or assets, and all applicants must provide personal guarantees.
• Repayment terms: loan terms vary from 12 months to 6 years, with fixed monthly repayments and no early settlement penalties.
• Eligibility: limited companies are eligible, but sole traders and other forms of business may need to incorporate to qualify.

While Nationwide Finance offers a comprehensive range of business loan products, the requirement for personal guarantees and legal charges might not suit every business, especially newer or smaller ventures looking for unsecured finance options

Nationwide business loan security requirements

Nationwide Finance's loans are typically secured, meaning borrowers need to provide personal guarantees or collateral, such as property or other significant assets. 

• While the speed of lending is an asset for many businesses, the decision about whether to offer your house or business for collateral is a major decision that requires careful consideration – borrowers should take care to evaluate their ability to repay before committing to a loan.
• This requirement might include a legal charge on your residential or business property or that of a guarantor, as well as a debenture over the assets of your company. 
• If the security is no longer needed, removing it incurs a 10% fee based on the future interest​.

Alternatives to Nationwide business loans

While Nationwide Finance offers secured business loans with fast access to funds, the requirement for collateral and legal charges on assets may not suit all businesses. 

Other alternative financing options can offer greater flexibility and fewer security commitments to provide the support your business needs. 

1. iwoca business loans

Iwoca Flexi-loans are designed for businesses needing quick access to funds with flexible repayment terms, particularly suitable for managing cash flow, expanding operations, or taking advantage of new opportunities.

• iwoca offers business loans up to £1,000,000 with a straightforward online application and fast approval process. 
• We evaluate businesses based on performance rather than just credit scores, making it an accessible option for SMEs.
• iwoca’s flexible terms allow you to borrow what you need, only paying interest on what you draw down and pay back as it suits your business’s cash flow, with no charges for early repayment.

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2. Digital overdrafts and credit lines

For businesses in need of some financial flexibility, a business overdraft can offer a flexible, on-demand financing option without the fixed structure of a traditional loan.

• These options provide businesses with the flexibility to draw funds as needed and only pay interest on what they use. 
• Digital providers such as Starling Bank and Capital on Tap offer credit products that integrate existing accounts, allowing you to manage cash flow from a central source.
  
  

3. Invoice finance

Invoice finance helps businesses release cash tied up in unpaid invoices, freeing up immediate cash flow without the need for debt.

• Access funds by advancing payments on outstanding invoices. 
• A factoring partner advances a portion of the amount owed and then takes on responsibility for chasing payments.
• Modern providers offer digital platforms that integrate directly with your accounting software, automating the funding process and streamlining the repayment journey.

3. Merchant cash advance (MCA)

Retail, hospitality, and online businesses with substantial card sales can use a merchant cash advance to borrow against their future sales. 

• A merchant cash advance provides a lump sum upfront in return for a percentage of future card sales.
• This flexibility means repayments vary with your sales volume, easing the burden during slower periods. 
• Providers like YouLend specialise in MCAs, offering fast access to funds and a repayment schedule that adjusts to your business’s daily sales.

Choosing the right digital finance option

If you’re looking for business finance without strict security commitments, iwoca unsecured loans offer a flexible finance alternative for small business owners, with the same speed and transparency as a Nationwide business loan.  

• Borrow up to £1,000,000 without requiring collateral
• Repay early with no extra fees
• Only pay interest on the amount you draw down

Ready to explore a more flexible financing option? Contact iwoca to learn more about their business loans and see how they can support your financial needs without the stringent security requirements.