Best £1m Business Overdraft Providers
For UK franchise buyers and operators, this guide compares loan periods and amounts, APRs, and terms across leading providers, with a focus on eligibility and fit. Amounts that could not be verified are left blank, prices accurate as of 2026-04-08.
Funding Agent focuses on providing a brokered platform that quickly compares business finance options for UK SMEs. It is suitable for franchise buyers and operators seeking fast pre-qualification and accessible business loans. The process emphasises simplicity and speed with options requiring minimal collateral and flexible repayment terms.
Loan Details
- Min Amount: £10,000
- Max Amount: £1,000,000
- Min APR: 4%
- Max APR: 20%
- Loan Duration: 3–60 months ⌛
Services & Industries
- Finance Types: Unsecured business loans, MCA Loans, Working capital
- Industries: UK SME's
Pros
- fastest and easiest application process
- No collateral required
Cons
- lower track record, only trading 1 year
Lloyds Bank specialises in traditional bank business loans and overdrafts tailored to UK SMEs. It is generally suited for franchise buyers and businesses requiring long-term financing with flexible terms. The bank offers various lending options with potential for secured and unsecured arrangements, accommodating different repayment schedules.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Up to 25 years ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: All industries
Pros
- Wide range of loans
- Strong reputation
HSBC UK offers commercial business loans primarily to smaller UK SMEs. It is suitable for franchise owners and companies needing moderate financing with competitive rates. HSBC provides flexible repayment options and benefits from a global banking network, supporting various sectors.
Loan Details
- Min Amount: £1,000
- Max Amount: £25,000
- Min APR: 11.3%
- Max APR: 0%
- Loan Duration: 12 to 120 months ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Various sectors
Pros
- Global network
- Competitive APR
Cons
- Not suitable for large loans
Barclays provides a variety of business loans and mortgages to UK SMEs. It suits franchise buyers and businesses seeking options that may require security or collateral. The bank offers flexible loan terms with rapid processing to meet different capital needs.
Loan Details
- Min Amount: £1,000
- Max Amount: £100,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown ⌛
Services & Industries
- Finance Types: Business Loans, Mortgages
- Industries: Wide industry support
Pros
- Flexible options
- Rapid processing
NatWest offers a broad selection of lending products with both fixed and variable interest rates. It is suitable for businesses and franchise owners requiring large loan amounts or flexible borrowing terms. NatWest services a wide range of industries with options that can include overdrafts and longer-term financing.
Loan Details
- Min Amount: £25,001
- Max Amount: £10,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: No upper limit on variable rates ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Most industries
6. Santander UK
Santander UK delivers flexible business loans designed to support diverse financial requirements. It suits franchised businesses and SMEs needing adaptable loan durations and terms. The bank provides options for various industries, with focus on tailored solutions rather than standardised products.
Loan Details
- Min Amount: £25,001
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Custom durations ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Various industries
Cons
- Higher starting loan amounts
Metro Bank provides tailored commercial and business loans offering flexibility for growth and acquisitions. It is suited to UK SMEs and franchise purchasers requiring personalised loan conditions. Metro Bank focuses on direct client relationships with variable terms and loan options based on company needs.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: 1 to 30 years ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Loans
- Industries: All sectors
TSB Bank provides a range of business loan products with both fixed and variable interest rates. It is suitable for SMEs and franchise operators who want straightforward loan options. TSB offers standard lending products with flexible rate structures adapted to business needs.
Loan Details
- Min Amount: £13,000
- Max Amount: £0
- Min APR: 9.9%
- Max APR: 0%
- Loan Duration: Unknown ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: All businesses
Pros
- Fixed and variable rates available
OakNorth Bank targets larger scale business loans for UK SMEs and franchises aiming for significant growth or development. It is suitable for businesses seeking substantial financing with flexible term structures. OakNorth typically supports secured loans with options tailored to borrower requirements.
Loan Details
- Min Amount: £1,000,000
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Flexible terms ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: All sectors
Pros
- High loan amounts
- Flexible terms
Cons
- High minimum loan threshold
10. Royal Bank of Scotland
Royal Bank of Scotland provides business loans and overdraft facilities targeting SMEs and franchise operators. It is appropriate for businesses seeking a variety of loan options with differing collateral and repayment features. RBS focuses on structured finance solutions with eligibility criteria typical of large banks.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: SMEs
Cons
- Strict eligibility criteria
How to choose
When selecting the best £1m business overdraft provider, consider your business size, loan requirements, and the flexibility you need. Check each lender’s eligibility criteria and product structure, including repayment type and collateral requirements. Speed of approval and funding may vary between brokers, banks, and specialist lenders. Evaluate interest rates alongside terms and fees to find the best balance for your cash flow and seasonal needs. Prioritise lenders that align with your industry sector and borrowing goals. Always review the fine print before committing to a loan.
Conclusion
Choosing the right provider depends on your specific business needs and loan size within the context of a £1 million loan. Bank providers often suit those needing established products with broader conditions, while brokers like Funding Agent offer fast access to multiple options through a streamlined application. Specialist lenders may provide tailored solutions for larger or more complex financing needs. Understanding your priorities regarding speed, flexibility, and collateral will help guide your choice among providers. Verify current terms and pricing as market conditions can change.
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