Running a small business in the UK can feel like a bit of a juggling act—especially when cash is tight or you’ve got big plans brewing. Whether you’re a florist in Norwich, a tech whiz in Sheffield, or a tradie in Dundee, finding the right funding can give you the boost you need. At Shadowfax Funding, we’re all about helping you navigate the debt options out there, linking you up with lenders who suit your situation. Here’s our pick of the top five debt funding choices for UK small businesses in 2025.
1. Start Up Loans – A Fair Start from the Government
If your business is still finding its feet—say, less than three years old—the Start Up Loans scheme is worth a look. You can borrow between £500 and £25,000 at a steady 6% interest rate, paid back over 1-5 years. They even chuck in 12 months of free mentoring to help you along.
- Who’s it for? – Completely new businesses and early-stage ventures anywhere in the UK.
- Why its number one? – The government’s keen to get small businesses thriving as the economy picks up.
- Why Shadowfax Funding Solutions? – We will make sure that you are eligable and we can make sure your application makes sense.
2. Business Term Loans – Straightforward Borrowing
Need a chunk of cash for new gear, a bigger space, or just to keep things ticking over? Business term loans from lenders newer more nimble Lenders offer £10,000 to £500,000, with repayments spread from six months to five years. Interest sits around 6% to 12%, depending on your credit.
- Who’s it for? – SMEs with a decent track record needing something reliable.
- Why it’s a good shout in 2025? – High street banks are dragging their heels, but these lenders are quick off the mark.
- Why Shadowfax Funding Solutions? – We will shop around for you, bagging a deal that fits like a glove.
3. Invoice Financing – Cash Without the Wait
Fed up with clients taking ages to pay? Invoice financing lets you borrow up to 90% of what’s owed to you, often within a day. Invoice Finance providers take a small cut (1-3% a month), and you settle up once the money rolls in.
- Who’s it for? – Businesses selling to other businesses—think suppliers or consultants.
- Why it’s handy in 2025? – With wages going up to £12.21 in April, you can’t afford to hang about for cash.
- Why Shadowfax Funding Solutions? – Within the team we have had years of experience within the invoice finance industry. We will make sure we pair you with a financier who keeps things moving smoothly.
4. Merchant Cash Advances – Borrowing That Bends
If your business runs on card payments—maybe a café in Bath or a shop in Belfast—a merchant cash advance could be just the ticket. Borrow £5,000 to £200,000, repaid as a slice of your daily card takings (say, 10-20%). Lenders like Liberis or 365 Finance swear by this for its flexibility.
- Who’s it for? – Retail or hospitality spots with regular card sales.
- Why it’s cracking in 2025? – When trade’s quiet, repayments ease off—no pressure.
- Why Shadowfax Funding Solutions? We make sure that this facility is right for you by looking at your cashflow. If it is not right, we will find an alternative for you.
5. Asset-Based Lending – Cash from What You’ve Got
Own some kit, a premises, or stock? Asset-based lending lets you borrow against it—anything from £50,000 to £1 million or more. Tied within an invoice finance facility, rates are very keen.
- Who’s it for? – SMEs with stuff to leverage, looking for a bigger sum.
- Why it’s worth it in 2025? – Assed Based Lending is the backbone to many large businesses and
- Why Shadowfax Funding Solutions? – We’ll broker a deal that gets you the most out of what you own.
Why Debt Funding’s Worth a Look in 2025
Debt doesn’t have to be a scary word—it’s a way to keep things moving. With energy costs settling down and business rates relief dipping to 40%, a well chosen loan can tide you over or push you forward. The trick is finding the right one, and that’s where we come in. At Shadowfax Funding, we are brokers who do the legwork, matching you with lenders so you don’t have to sweat the details.
Fancy a chat about getting your business funded this year? Send us a message here we’d love to help you sort it out. The UK’s small business world is buzzing in 2025—don’t miss out.