Monzo business loans: features and alternatives

Monzo lends directly to sole traders, while limited company directors can check eligibility in the app too and apply to a third-party lending partner. There are also Monzo business overdrafts, with separate terms for sole traders and limited companies.

This guide covers what you can borrow, what it costs, the eligibility rules, and where a Monzo loan runs out of road for a growing limited company.

All Monzo product details below are taken from its business loans and overdrafts page and sole trader loans page, and were correct as of September 2026. Rates, limits and eligibility can change, so check the current position with Monzo before applying.

Does Monzo do business loans?

Yes, but with conditions. You need a Monzo Business account to apply for anything. Monzo doesn't lend to businesses that bank elsewhere, so this isn't a loan you can apply for on its own.

• For a sole trader loan, you must be 18 or over, a sole trader, and hold a Monzo Business account. You can borrow £200 to £25,000, with the term varying by amount.

• For limited companies, Monzo can connect you with one of their lending partners after checking your eligibility in the Monzo app. 

Note: Monzo can only offer you one loan across all your accounts. If you already have a personal Monzo loan, you can't take a business one, and vice versa.

What a Monzo business loan costs

For limited companies, Monzo doesn’t publish loan costs online, but there are some factors they do discuss which can influence what you pay.

• No fees for paying early or paying extra: You can overpay or settle early from the app at no charge, and that overpaying reduces both your monthly repayment and the total cost of the loan.

• No late payment fees: Monzo doesn't charge for a missed payment. But it does report missed payments to credit reference agencies, which can affect your ability to borrow later.

• Fixed, not variable: The loans are quoted at a single annual interest rate that's fixed, so repayments stay the same.

Rates, fees and eligibility vary between lenders and change over time. Compare the total amount repayable rather than the headline rate, and check current terms directly with each provider.

Monzo business overdrafts

Sole traders can be eligible for an arranged overdraft up to £3,000. Monzo doesn't charge for using it, and interest is calculated daily on the overdrawn balance and added monthly.

Limited companies can get £500 to £5,000, with one overdraft per company and only directors with admin access able to apply. A personal guarantee is required. 

For limited companies, Monzo runs a hard search on the company, which leaves a record on its credit file, and a soft search on the applying director, which doesn't affect their personal credit score.

Alternatives for limited companies

If you run a limited company and the amounts available don't stretch far enough, Funding Circle business loans

Financing your business with Funding Circle

If your limited company needs more than Monzo can offer, Funding Circle business loans can help you access the funds you need to grow.

• Borrow £10,000 to £750,000 over 6 months to 6 years

• Rates from 6.9% per year, fixed for the term

• No need to open or switch a business account, so your banking stays where it is

• Limited companies and LLPs can get a decision without affecting their credit score

• Unsecured loans don’t require putting up property or other assets as security

Use the business loan calculator to see what you'd repay before you apply. Applications take around 7 minutes and approved loans are typically funded within 48 hours. A personal guarantee is required if you're approved, and we recommend taking independent legal advice before signing one.

Monzo Business Loan FAQs

Does Monzo offer business loans to limited companies?

Monzo says limited company directors can check eligibility for a business loan in the app, and that where it can't lend directly it refers applications to a lending partner, earning a commission for the referral. Partner loans run from £500 to £35,000 and require a business account held for at least 30 days plus a personal guarantee.

Can I get a Monzo business loan without banking with Monzo?

No. Monzo only lends to Monzo Business customers, subject to eligibility.

Will applying affect my credit score?

For limited company overdrafts, Monzo runs a hard search on the company, which leaves a record on its credit file, and a soft search on the applying director, which doesn't affect their personal credit score. Check the search type before applying for any credit product.

Disclaimer

27/09/26 –  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.