Refinance Loans — Typical Business Refinance Rates & Terms in the UK

Author: UK Business Loans Content Team — Last reviewed: 01 November 2025

Quick answer: what to expect from business refinance rates in the UK

Typical business refinance rates in the UK vary by product and security. As at November 2025, indicative ranges are: secured commercial mortgages c.3%–6% pa; unsecured term loans c.6%–25%+ APR; asset finance c.4%–12%; invoice finance fees 0.5%–2% per month; bridging 0.4%–1.5% per month. Fees and LTV materially affect the rate — always ask lenders for APR and total cost figures. Want a tailored quote? Get Quote Now — Free Eligibility Check.

What is refinancing — and when does it make sense for a business?

Refinancing means replacing an existing loan or credit facility with a new one, usually to achieve one or more objectives:

• Lower the interest rate or monthly repayment.
• Consolidate multiple facilities into a single loan.
• Release equity from property or assets.
• Change the loan term to improve cash flow.

Common refinance objectives

• Reduce annual interest cost.
• Simplify administration and covenants.
• Fund growth or capital expenditure while restructuring debt.

When refinancing can backfire

• Large arrangement, legal or early repayment fees can outweigh interest savings.
• Extending terms may lower monthly payments but increase total interest paid.
• Changing security or covenants can add future restrictions.

Usual refinance rates in the UK — by loan and finance type

Ranges below are indicative only and depend on lender, security, LTV and business circumstances (typical ranges as at November 2025).

Secured commercial mortgages / property refinance

Typical headline rates for refinancing commercial or owner‑occupied property at moderate LTV (60–70%) are often from around 3%–6% pa. Lower rates apply where the borrower has strong accounts, proven covenant and lower LTV; higher rates apply with development risk, weak accounts, or specialist properties. Expect arrangement fees (0.5–2% common), valuation and legal costs.

Unsecured business loans / term loans

Unsecured refinance or term loans (no property security) are priced by risk. Indicative ranges: c.6% up to 25%+ APR. Good-credit, established SMEs with multi-year trading can access lower end; early-stage or higher-risk cases attract higher APRs. Loan sizes usually start from around £10,000.

Asset & equipment refinance (HP, lease, asset refinance)

For equipment, machinery and vehicle finance, rates commonly sit between c.4%–12% depending on asset age and term. Finance can be structured as hire purchase (HP), finance lease or refinance against assets’ book value.

Invoice finance / invoice discounting

Invoice finance charges are typically expressed as a percentage of invoice value per month. Typical fee ranges: 0.5%–2% per month on drawn amounts. Effective annualised costs depend on how quickly invoices are repaid — shorter cycles reduce annualised cost.

Bridging loans & short-term refinance

Short-term bridging rates vary widely due to speed and risk: typical monthly rates of 0.4%–1.5% per month (approx. 5%–20%+ APR). Security and exit strategy (sale, remortgage, development finance) strongly influence pricing and fees.

Merchant cash advance & alternative finance

Alternative products often use factor rates rather than APRs. Effective costs can be high — sometimes equivalent to double-digit APRs. Always compare total payback and cashflow impact rather than headline rate alone.

Typical refinance rate ranges (indicative — Nov 2025)

Product	Typical rate range	Typical term / notes
Secured commercial mortgage	c.3%–6% pa	10–25 years; LTV 60–80%
Unsecured term loan	c.6%–25%+ APR	1–5 years; from £10k
Asset / equipment finance	c.4%–12% pa	1–7 years; up to 100% of used asset value
Invoice finance	0.5%–2% per month	Facility fee + service fees; variable drawdown
Bridging / development	0.4%–1.5% per month	Short term; exit critical
Merchant cash advance	Factor rate (high effective cost)	Repayment via sales %; compare total payback

Note: These ranges are indicative. Lenders and brokers set final terms and APRs based on full underwriting.

Typical loan terms, LTV limits and repayment lengths

Repayment periods by product

• Secured commercial mortgages: up to 25–30 years commonly, sometimes shorter for investment property.
• Unsecured business loans: typically 1–5 years.
• Asset finance: 1–7 years depending on asset life.
• Invoice finance: revolving facility, ongoing.
• Bridging: days to 12–18 months.

LTV and security expectations

• Property refinance LTV: typically 60–80% depending on property and lender.
• Asset finance: often up to 100% of equipment value for new assets; lower for used assets.

Early repayment & break clauses

Many lenders charge Early Repayment Charges (ERCs) or break costs, especially for fixed-rate property refinance. Always request the ERC schedule and how it’s calculated before switching.

Fees and additional costs you must plan for

• Arrangement / facility fee: commonly 0.5–3% or a fixed fee.
• Valuation & survey fees: property or asset valuations — typically from a few hundred to several thousand pounds.
• Legal fees: solicitor costs for security documentation.
• Broker fee: some brokers charge fees; confirm up front.
• Early repayment charges: especially for fixed-rate commercial mortgages.
• Exit and monitoring fees: occasional annual monitoring or exit fees on some facilities.

A lower headline rate can be offset by high fees — always ask for an APR and total cost example.

What determines your actual refinance rate?

• Business trading history, profitability and cashflow.
• Director(s) credit record and personal guarantees.
• Security type and Loan-to-Value (LTV).
• Industry risk and forecast volatility.
• Existing covenants, outstanding debt structure and complexity.
• Speed required — faster deals often cost more.

Quick checklist: what lenders and brokers will ask

• Company age and months/years trading.
• Annual turnover and recent profit/loss figures.
• Business and director bank statements (typically 3–6 months).
• Existing facility details and outstanding balances.
• Property/asset details and valuations if secured.
• Projected use of funds and exit strategy for bridging/development refinance.

How UK Business Loans helps — fast, no‑obligation matching

We pass your details to vetted UK lenders and brokers who can quote for refinance solutions that fit your business. Our quick enquiry is not an application — it simply lets us match you to the right partners. Typical response times: from a few hours up to 48 hours depending on complexity.

Want to see what you could access? Get Quote Now — Free Eligibility Check.

For more detail on refinance product choices, see our partners’ dedicated page on refinance loans.

Representative example scenarios — indicative only

• Example 1 — Debt consolidation (SME): Consolidating three short-term facilities into a 3‑year unsecured term loan at c.10% APR reduces monthly admin and may lower blended cost. Indicative only.
• Example 2 — Construction firm: Refinance an existing commercial mortgage at 65% LTV into a new secured term of 15 years at c.4.5% pa, freeing up a smaller working capital facility.
• Example 3 — Clinic asset refinance: Refinance medical equipment via an asset finance facility at c.6% over 5 years to spread cost and preserve cashflow.

Simple guide: estimate the cost of a refinance

Basic calculation: monthly interest = (annual rate / 12) × outstanding balance. Add arrangement and legal fees to the first year’s cost to compare offers. Always ask lenders for APR and a Total Cost figure over the term.

Want a precise comparison quickly? Free Eligibility Check — Get a Quote.

Frequently asked questions about business refinance rates

How much does refinancing a business loan cost?

Costs vary by product and lender. Typical ranges (indicative) appear above — always request APR and a full fees breakdown to compare like-for-like.

Will refinancing affect my credit score?

Submitting an enquiry via UK Business Loans does not affect your credit. Lenders may carry out credit checks later if you proceed — they will tell you in advance.

How long does refinancing take?

Timescales depend on product: bridging can be days–weeks; mortgage remortgage/refinance often 4–12+ weeks; unsecured/asset finance often 1–4 weeks with full docs.

Can new businesses refinance?

Lenders generally prefer a trading record; however some specialist lenders or structures may assist younger companies. Expect higher rates or collateral requirements.

Can I refinance with poor credit?

Possibly — specialist lenders may consider cases, but rates and fees are usually higher. We can match you to providers with relevant appetite.

What documents are typically needed?

Recent accounts, management accounts, business bank statements, details of existing loans, property/asset details, and ID for directors.

Is your service free?

Yes — our matching service is free for business owners. We introduce you to lenders and brokers who can provide quotes and next steps.

Ready for a quick, no‑obligation refinance quote?

Here’s what to do next: complete our short enquiry and we’ll match your business to brokers and lenders who can help. It takes under 2 minutes and won’t affect your credit score. Get Quote Now — Free Eligibility Check.

Important: UK Business Loans is an introducer. We do not lend money or provide regulated financial advice. We connect businesses to lenders and brokers who supply offers — any offer, rate or term is the decision of those providers. Submitting an enquiry will enable selected partners to contact you about potential solutions; submitting the form is not an application and will not directly affect your credit score.

• Loan sizes we typically arrange: from £10,000 and up.
• Free, confidential and no obligation.
• Typical response time: hours to 48 hours.

1. What refinance rates can I expect for a business loan in the UK?
Typical ranges (indicative Nov 2025) are secured commercial mortgages c.3%–6% pa, unsecured term loans c.6%–25%+ APR, asset finance c.4%–12% pa, invoice finance 0.5%–2% per month and bridging 0.4%–1.5% per month, with final pricing driven by LTV, security and credit.

2. How long does refinancing a business loan usually take?
Timescales vary by product: bridging can complete in days–weeks, secured mortgage remortgages typically 4–12+ weeks, and unsecured/asset finance often 1–4 weeks with full documentation.

3. Will submitting an enquiry with UK Business Loans affect my credit score?
No — submitting our quick enquiry does not affect your credit score; lenders or brokers may perform checks only if you choose to proceed.

4. Is UK Business Loans a lender and does your service cost anything?
No — we are an introducer (not a lender) and our matching service is free for business owners, though individual brokers or lenders may charge fees for their services.

5. Can I refinance a business loan if I have poor credit or limited trading history?
Possibly — specialist lenders and brokers work with poor-credit cases and newer businesses, but expect higher rates, stricter security or collateral requirements.

6. What fees should I budget for when refinancing a business loan?
Common costs include arrangement/facility fees (typically 0.5–3%), valuation and survey fees, legal fees, possible broker fees and early repayment charges, so always request APR and total cost figures.

7. What documents will lenders ask for to refinance my business loan?
Lenders typically request recent statutory accounts, management accounts, 3–6 months business bank statements, director ID, details of existing facilities and property/asset valuations if securing the loan.

8. What factors most affect the refinance rate offered to my business?
Rates are influenced by business trading history, profitability and cashflow, director credit records and guarantees, the type and LTV of security, industry risk and how quickly you need funds.

9. How quickly can UK Business Loans match me with lenders and get quotes?
After you complete our short enquiry we typically match you to relevant FCA-regulated lenders and brokers who often respond within hours and usually within 48 hours with initial quotes.

10. How do I compare refinance offers and estimate the true cost?
Compare APR and total cost over the term, calculate monthly interest as (annual rate/12)×balance, and add upfront arrangement, legal and valuation fees to the first-year cost to make like‑for‑like comparisons.