Sole trader loans for SMEs in the UK

Flexible, cost-effective finance for sole traders and small businesses. Apply online to access the funding you need.

Unsecured, without collateral

Free non-committal application

Decision within one working day

No fees for repaying early

What are sole trader loans?

Because sole traders work for themselves, without operating through a limited company or partnership, it can be harder to borrow for business purposes. A sole trader loan is a finance solution suitable for people who choose to work in this way.

A Spotcap unsecured business loan offers significant benefits to anyone looking for a sole trader loan. The application process uses technology to save time, by relying as far as possible on uploads of standard reports rather than asking you to fill in forms.

The approval process is based on a unique system that analyses the financial condition of your business. When you are approved to borrow, you choose how much finance to take and pay interest on, subject to the overall credit limit.

What are sole trader loans?

Because sole traders work for themselves, without operating through a limited company or partnership, it can be harder to borrow for business purposes. A sole trader loan is a finance solution suitable for people who choose to work in this way.

A Spotcap unsecured business loan offers significant benefits to anyone looking for a sole trader loan. The application process uses technology to save time, by relying as far as possible on uploads of standard reports rather than asking you to fill in forms.

The approval process is based on a unique system that analyses the financial condition of your business. When you are approved to borrow, you choose how much finance to take and pay interest on, subject to the overall credit limit.

Is a Spotcap unsecured loan available to a sole trader?

Spotcap is willing to loan to all forms of business, whether a sole trader, a partnership or a limited company. We understand that many sole traders run successful commercial operations and have the same finance needs as other businesses.

As a sole trader, you are looking for a loan that’s adaptable to your circumstances. Our unique approach to a Spotcap loan provides the flexibility sole traders require. Once it’s approved, the loan begins as a line of credit, making it your choice when and how much to withdraw.

Whatever amount you choose to draw down is converted into a loan, usually repayable over 7 to 15 months. It remains flexible - you only pay interest on what you borrow and you can select to make early repayments without incurring any penalty charges.

How could a Spotcap loan benefit you as a sole trader?

Our unique system for reviewing and approving business loans allows you, as a sole trader, to access valuable finance. Here are some examples of how you can put it to use:

  • To purchase a vehicle or tools

    A Spotcap loan can help provide the funds needed to upgrade or purchase essential business assets. Unlike asset finance, the loan is unsecured.

  • To fund an apprentice

    Having a second pair of hands can be expensive and it can take time for them to contribute to output as in the early days they are relatively unskilled. A loan can help bridge the gap until they become more productive.

  • To invest in a major project

    A business loan makes it easier for a sole trader to take on a larger, more profitable piece of work that would otherwise put a strain on your cashflow.

  • To pay for training costs

    Taking time out to sharpen your skills can be tricky for a sole trader. Our business loans can help with your investment in training, that you’ll recoup from future business.

  • To cover emergency shortfalls

    For a sole trader, a Spotcap loan can be a practical alternative to a traditional bank overdraft. Our finance offers similar flexibility, with the advantage of an online application process.

Business loans for sole traders - key facts

Take advantage of our unique finance solution for UK businesses and entrepreneurs

Loan amount

You can borrow between £10k and £150k, depending on your needs and our assessment of the financial condition of your business.

Loan terms

We initially offer you a credit line, from which you can choose to draw down funds. These draw downs become loans, repayable over 7 to 15 months.

Criteria to qualify

Any business can apply for a Spotcap loan if it meets these criteria: it’s been operating in the UK for 24 months, has a minimum turnover of £250k and a UK bank account.

Interest rates

The rate of interest on our loans is based on market conditions and your recent business performance. Use our business loan calculator to estimate interest charges and repayment amounts.

Our business loans reviewed

Business loan repayment calculator

  • Amount
    £ 100,000
  • Time
    12 months

£9,340

Monthly Repayment

For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

Monthly Repayment

£9,168

  • Amount
    £ 100,000
  • Time
    12 months
For illustrative purposes only. The example shown above is based on 1.5% average monthly interest rate and 2.0% arrangement fee. The APR (annual percentage rate) is , which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. 
We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.

How to apply for a Spotcap business loan for sole traders

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Sign up

We need basic personal and business information from you to begin the loan application process.

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Complete the application

This requires either linking your accounting system, or uploading financial statements. We also need uploads of your bank statements.

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Get approval

It takes just one working day to get access to finance, once the loan is approved.