Businesses with current loans will not be affected.
Spotcaps partners will not be able to submit loan applications on behalf of their clients.
The decision to stop was made in light of the uncertainty caused by the coronavirus and the associated economic outlook in the short term.
Since 2016, Spotcap has provided more than £120m in loans to thousands of British businesses.
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Niels Turfboer, managing director at Spotcap, said: “Given the unpredictability around Covid-19, we agreed to put new loan applications on hold for the time being.
“The team will continue to service our current clients and is always happy to speak to our partners to answer any questions they might have.
“We are keen to support UK businesses with unsecured finance again once we all have a clearer picture of what lies ahead,” he added.