Small business loans: Why flexible features matter

Business is anything but predictable. We get it. Rarely does everything go to plan, which is why you need finance that’s as flexible as your business.

When it comes to choosing a loan, there are a lot of things to consider. While interest rates and term length are usually a business owner’s first concern, it’s worth asking lenders whether there is any flexibility in their product as well.

Here we look at the flexible features you should consider when choosing a business loan.

Overpayments 

A loan overpayment is when your lender allows you to pay back more than your contractual amount every month.

Being able to overpay when cash flow allows reduces the size of your loan, meaning you pay less interest. It’s a win:win. It’s good for your business and it’s good for ours. 

You can make overpayments on almost any of our business loans with no additional fee. 

Read more: Ready to pay off your business loan early? Here’s how it could save you money

Early settlement fees

An early settlement fee, sometimes referred to as an early repayment fee, is a charge levied by lenders to ensure they get the full interest payments on a loan. 

If your circumstances change and you find yourself in a position to pay off your loan in full, ahead of schedule, you may face a fee to do so.

We believe that small businesses need finance that works for them. And we don’t think it’s fair to charge you for your success. That’s why we have zero early settlement fees. You’re free to pay back your loan in a way that suits your business, not when it suits ours.

Read more: Early settlement fees: What are the benefits of repaying early?

Repayment holidays

Repayment holidays are a period, agreed with your lender, during which you are allowed to temporarily stop making repayments on your loan.

If your cash flow fluctuates throughout the year, the option of having a repayment holiday might be important for you.

Choice of loan term 

Whether you need a short-term cash injection, or money to fund your next stage of growth, it’s important that you only borrow for as long as you need. If your loan term is longer than you require, you’ll be paying more interest than is necessary (unless you have the option to repay early).

We offer business loans from six months to six years, so you can choose the best term for your business.

Refinancing options

Refinancing a loan means paying off an existing loan and replacing it with a new loan. You might want to refinance an existing loan to:

• Lower monthly repayments

• Potentially reduce the overall cost of borrowing

• Consolidate multiple debts into one repayment

• Change the loan term

• Make cash flow easier to manage

At Funding Circle, we believe that if your circumstances change, it’s good to know you have options. We’ll work with you to find the best deal for your business.

Read more: Refinance your business loan

Top-ups 

The option of a loan ‘top-up’ means existing loan customers could borrow more without the need to reapply from scratch. So, if you find you need to borrow more than you initially expected, a top-up could reduce admin time and help you get the extra money quicker.   

Funding Circle now offers top-ups for certain loans. As you repay your loan, we’ll regularly assess your credit position and may be able to offer additional funds in a fast, flexible way.

Read more: Business loans

Business finance that works for your business, whatever comes your way 

Flexibility is built into our business loans, because we believe our finance should work around your business.

Check your eligibility for a fixed-rate loan in just 30 seconds at fundingcircle.com.

12/10/26: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.