Best Business Loan Lenders for Startups
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 2026-03-16.
Funding Agent focuses on brokering unsecured business loans targeted at UK SMEs. It is suitable for businesses seeking straightforward financing options with a quick application process and flexible repayment terms. Funding Agent offers fast matching to lenders without requiring collateral and provides access to multiple loan types.
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
iwoca specialises in short-term, flexible business loans for small companies primarily in the UK and Germany. It suits startups and SMEs requiring rapid funding with options for variable repayment schedules. The loans are mostly unsecured, offering convenience at potentially higher costs for some borrowers.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 6%
- Max APR: 15%
- Loan Duration: 1 day to 24 months ⌛
Services & Industries
- Finance Types: Short-term Loans, Working Capital
- Industries: Retail, Traditional small businesses
Pros
- Quick approval
- Flexible repayment
Cons
- High APR for some risk profiles
Start Up Loans Company provides government-backed loans designed to support new businesses across various sectors. It is well suited to startups looking for fixed low-interest financing without fees. The scheme offers unsecured loans and structured repayment over several years.
Loan Details
- Min Amount: £500
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 6%
- Loan Duration: 1 to 5 years ⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: Various start-ups
Cons
- Limited maximum loan amount
Funding Circle offers term loans via an online platform focused on SMEs across diverse sectors in the UK. It is appropriate for businesses seeking competitive rates and relatively quick access to funds. Loan applications undergo specific eligibility checks and repayment terms vary by agreement.
Loan Details
- Min Amount: £10,000
- Max Amount: £750,000
- Min APR: 4.9%
- Max APR: 30%
- Loan Duration: Up to 6 years ⌛
Services & Industries
- Finance Types: Term Loans
- Industries: SMEs across various sectors
Pros
- Competitive rates
- Quick funding
Cons
- Stringent eligibility criteria
Lloyds Bank provides traditional banking products including structured business loans for startups. Its offerings are generally suited to established businesses seeking reliable financial services and longer-term credit arrangements. Applications often involve wider banking relationship checks and formal processes.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Various businesses
Pros
- Established banking institution
- Various business-focused products
Cons
- Standard banking procedures
Barclays offers a broad range of banking and loan products including service tailored startup loans. It is appropriate for businesses needing established banking relationships and varied financing options. Loan terms and approvals reflect standard banking protocols and can involve detailed assessments.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Various businesses
Pros
- Reputable bank with extensive services
Cons
- Potentially lengthy approval process
Virgin StartUp is a not-for-profit organisation offering unsecured loans and mentoring support to UK startups. It fits early-stage businesses needing advice alongside financing with fixed interest terms. Loan sizes are modest and suitable for companies valuing both capital and guidance.
Loan Details
- Min Amount: £0
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 6%
- Loan Duration: 1 to 5 years ⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: Various startups
Pros
- Supportive ecosystem with mentoring
- Fixed rate
Money Supermarket offers a platform to compare various business loan rates across multiple lenders. It is suitable for startups wanting to explore a broad range of loan options quickly. While not a lender itself, it simplifies access to differing products and terms for informed decision-making.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Variable based on lender ⌛
Services & Industries
- Finance Types: Comparison Services
- Industries: Various sectors
Pros
- Comprehensive comparison platform
Cons
- Third-party service, not a direct lender
HSBC provides a wide range of business financing solutions including loans tailored for startups. It is fitting for companies looking for stable banking services with diverse product access. Loan offers combine fixed and variable rates with various repayment periods, subject to eligibility.
Loan Details
- Min Amount: £1,000
- Max Amount: £25,000
- Min APR: 11.3%
- Max APR: 11.3%
- Loan Duration: 12 months to 10 years ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Various sectors
Pros
- Global financial institution
- Diverse financial products
GoCompare is a comparison website that allows startups to evaluate business loan offers from numerous lenders. It suits those wanting an easy way to identify options with varied loan conditions. The platform helps navigate different terms and lenders but does not provide direct financing.
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Varies by lender ⌛
Services & Industries
- Finance Types: Comparison Services
- Industries: Various businesses
Pros
- Wide range of lenders
- Easy comparison platform
Cons
- Dependent on data from partners
How to choose
When selecting the best business loan lenders for startups, consider aligning loan size and APR with your financial plan. Evaluate each provider’s eligibility criteria and review loan terms carefully, including any fees and repayment flexibility. Consider whether speed or tailored options are more important for your business needs. Factor in how repayments will fit your cash flow and seasonal income. Use comparison tools or brokers to access a wider array of offers, but verify lender credibility and conditions directly. Prioritise providers that suit your startup’s scale and sector for the best match.
Conclusion
Choosing the right lender depends on your specific startup requirements. Banks offer stability and established procedures, brokers like Funding Agent provide access to multiple unsecured options quickly, and specialist providers may suit niche needs. Consider whether you prefer direct lender relationships or brokered access when matching loan products to your use case. Always confirm terms, as conditions for a 200 thousand pounds loan or similar may vary widely among providers.