Are there any upfront fees to apply for a business loan?

Applying should be free

Enquiring and applying for a business loan should not cost you anything on its own. The legitimate costs of borrowing — an arrangement fee, a valuation on a secured deal, legal work — attach to a facility you are actually taking, and are usually paid on or around drawdown, not as a condition of being considered.

Spotting an advance-fee scam

Be very wary of anyone demanding a fee upfront to "release", "guarantee" or "expedite" a loan before you have an offer. That is the classic advance-fee fraud pattern. No genuine lender guarantees approval for a payment, and none needs money from you before lending money to you. Verify the firm is real and, where relevant, FCA-registered before parting with anything.

Knowing the real costs

Do ask, before you commit, exactly what fees apply and when — that is one of the questions to ask a lender. Include every fee in your total-cost comparison, and use the borrowing-decision checklist to make sure you understand the full price before signing.