If your company has a few years of trading behind it and a story that needs explaining, EAL Holdings is worth an early conversation: an underwriter reviews each enquiry, decisions look at trading and cash flow rather than only a credit score, and the first check is a soft search. iwoca suits fast online applications, Funding Circle offers a range of loan types, and OakNorth Bank builds larger bespoke facilities for growing firms.
Two companies with the same turnover can get very different answers from the same lender. One has a tidy credit file and steady monthly income. The other had a bad year during a contract dispute, has since recovered, and now wants to fund a new van or a bigger stock order. For the second company, how a lender makes its decision matters as much as what it lends.
This guide compares four UK lenders on that point. We start with business loans for SMEs from EAL Holdings, a Harrow-based lender that works only with UK-registered companies, then look at three well-known alternatives. We focus on process, not prices: who each lender serves, how the first credit check works, who looks at your case and what it says about personal guarantees.
The four lenders side by side
| Lender | Type | Who it lends to | First credit check | Who reviews the case | Personal guarantee |
|---|---|---|---|---|---|
| 1. EAL Holdings | Specialist business lender | UK-registered companies; not consumers | Soft search at enquiry; hard search only if you proceed after an indicative offer | An underwriter from its credit team | Its SME loans are secured by a personal guarantee, explained up front |
| 2. iwoca | Online business lender (not a bank) | UK-based limited companies and LLPs | Soft credit checks only to apply | Online application, with a support team by phone | Required from at least one director |
| 3. Funding Circle | Online business finance platform | UK businesses; decision without credit impact for limited companies and LLPs | Quote without affecting your credit score (Ltd and LLP) | Online application, UK-based support team | Not stated on its homepage |
| 4. OakNorth Bank | Bank focused on structured debt | Growing businesses in the UK and US | Not stated on its business loans page | Industry specialists; larger loans may involve meeting its Credit Committee | Not stated on its business loans page |
Taken from each lender's own website in October 2026. This is not an offer of credit, and each lender makes its own decision.
How we compared them
We read each lender's own website and recorded what a director needs to know before sharing any details: who the lender is for, what the first credit check involves, whether a person or an automated system makes the decision, and what the lender says about personal guarantees. We deliberately left out interest rates, loan sizes and repayment periods. Those depend on your business, and a figure on a homepage says little about the offer you would actually receive.
1. EAL Holdings: a person, not a scorecard
EAL Holdings is registered in England and Wales (company number 13799741), with its registered office on Pinner Road in Harrow. It lends only to UK-registered companies and states that it does not lend to consumers. Its two products are SME business finance, for working capital, growth or refinancing, and property-secured finance.
The main difference is the decision. EAL says every enquiry is reviewed by an experienced underwriter, not a chatbot or tick-box system, and that trading reality and cash flow drive the decision rather than a credit score alone. It does not require a perfect credit history. Adverse credit is looked at case by case, and it says it prefers a conversation to an automatic decline.
The process has four stages: a short enquiry form or call, a conversation with an underwriter, an indicative offer explained in plain language, and release of funds once documents are signed and conditions are met. A relationship manager keeps you updated along the way.
Its SME loans are secured by a personal guarantee, and EAL says it explains guarantee structures clearly before you commit. Its enquiry form shows the SME loan is aimed at companies trading for three years or more. Typical documents are 6 to 12 months of business bank statements, recent filed or management accounts and ID for all directors.
Suits: established companies in construction, retail, hospitality, property, logistics or professional services, such as dental practices and accountants, whose figures need context.
2. iwoca: built for quick online applications
iwoca says it is not a bank but a company built specifically for small businesses. It accepts applications from UK-based limited companies and LLPs of any age or industry, and asks for basic business details and a year of bank statements, which you can share through Open Banking.
It says it only runs soft credit checks when you apply, though a loan you draw will show on your credit report. A personal guarantee is required from at least one director. iwoca Ltd is registered with the FCA under the Payment Services Regulations for its payment services.
Suits: smaller companies that want to apply online and borrow modest sums as needs arise.
3. Funding Circle: several loan types in one place
Funding Circle offers short and long-term business finance online and says limited companies and LLPs can get a decision without affecting their credit score. It highlights an application that takes about seven minutes and a UK-based support team.
Funding Circle Ltd is authorised and regulated by the FCA, and its site states that it is not covered by the Financial Services Compensation Scheme.
Suits: businesses that want to compare different loan types online with one provider.
4. OakNorth Bank: bespoke facilities for growth
OakNorth says it focuses solely on structured debt finance and has lent over £12 billion to businesses across the UK and US. Its facilities are built around each business, with fixed-term loans or revolving credit, and it says it takes time to understand a business rather than treating a whole sector the same way.
For loans above a certain size, it says borrowers are invited to meet its Credit Committee. That makes it a different proposition from the online lenders: more involved, and aimed at companies with significant growth plans or an acquisition in view.
Suits: fast-growing companies that need a larger, tailored facility.
Which approach suits your company?
Think about your own file before you choose. If your accounts are clean and you need a modest sum, an online lender may be the simplest route. If your business has grown fast and needs a large facility, a specialist bank may fit. If your numbers are sound but need explaining, such as a one-off loss, a delayed contract or a past default that has been settled, a lender where an underwriter reads the case can be a better first conversation.
Whichever you approach, check the basics first. Request your own statutory credit file so there are no surprises. The ICO explains that credit reference agencies must provide it free of charge. GOV.UK's business finance finder lists other options too, including grants and regional schemes.
Questions to ask any lender
- Is the first check soft or hard, and when exactly would a hard search happen?
- Will a person read my accounts, or is the decision automated?
- What is the total amount repayable, including every fee?
- Is a personal guarantee needed, is it capped, and when does it end?
- Is the agreement regulated, and which complaints route applies?
On guarantees, the British Business Bank describes a personal guarantee as legally binding, making the director personally liable if the business cannot repay. Take legal advice before signing one.
Frequently asked questions
Can an SME with a poor credit history get a business loan?
Sometimes. EAL Holdings says it does not require a perfect credit history and assesses adverse credit case by case. Other lenders set their own criteria, so ask before applying.
Does checking eligibility affect my company's credit score?
Not if the lender uses a soft search. EAL Holdings, iwoca and Funding Circle all describe a soft first check. A hard search usually comes only at full application.
Do I need to be a limited company?
For these four, usually yes. EAL Holdings lends to UK-registered companies, and iwoca accepts limited companies and LLPs.
Are business loans regulated by the FCA?
Most lending to limited companies is not regulated in the same way as consumer credit. Check any lender's status on the FCA Register.
Sources
- GOV.UK: Find finance and support for your business
- British Business Bank: guide to personal guarantees
- ICO: Credit files and credit reference agencies
- FCA Financial Services Register
General information only, not financial advice. Business finance is credit and must be repaid, and a personal guarantee puts your own assets at risk. Lender details were taken from their own websites in October 2026; check current criteria and take independent advice before you borrow.