March 17, 2026
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Best Business Loan Lenders for Startups

Discover the best business loan lenders for startups in the UK. Find flexible loan options, competitive rates, and expert tips to grow your new business today.
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Best Business Loan Lenders for Startups
James Laden
Co-founder and CEO

8 years of experience working with major financial companies in the UK, and now focuses on making business funding simpler for SMEs through a faster, technology-led application journey.

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.

1. Funding Agent

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

Sources: Funding Agent

2. iwoca

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

Sources: Source Source

3. Start Up Loans Company

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

Pros

  • Fixed interest
  • No fees

Cons

  • Limited maximum loan amount

Sources: Source Source

4. Funding Circle

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

Sources: Source Source

5. Lloyds Bank

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

Sources: Source

6. Barclays

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

Sources: Source

7. Virgin StartUp

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

Cons

  • Limited loan size

Sources: Source

8. Money Supermarket

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

Sources: Source

9. HSBC

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

Cons

  • Relatively high APR

Sources: Source

10. GoCompare

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

Sources: Source

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.

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FAQs

What types of business loans are available for startups?
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1Funding AgentFunding Agent helps UK SMEs compare business finance options fast, with a simple application journey and quick eligibility matching.£10,000–£1,000,000; 4%–20% APR; 3–60 months
2iwocaiwoca offers fast and flexible short-term business loans to small businesses in the UK and Germany.£1,000–£1,000,000; 6%–15% APR; 1 day to 24 months
3Start Up Loans CompanyA government-backed scheme providing low-interest loans to new businesses.£500–£25,000; 6%–6% APR; 1 to 5 years
4Funding CircleFunding Circle is a leading online lending platform, helping UK SMEs access business loans quickly and at competitive rates.£10,000–£750,000; 4.9%–30% APR; Up to 6 years
5Lloyds BankLloyds Bank offers a range of financial services including structured business loans for startups.£0–£0; 0%–0% APR; Unknown
6BarclaysBarclays offers comprehensive banking services and startup business loans among other financial products.£0–£0; 0%–0% APR; Unknown
7Virgin StartUpVirgin StartUp is a not-for-profit organization providing financial support and guidance to startup businesses.£0–£25,000; 6%–6% APR; 1 to 5 years
8Money SupermarketMoney Supermarket provides a platform for comparing business loan rates from various lenders to find the best deal for startups.£0–£0; 0%–0% APR; Variable based on lender
9HSBCHSBC offers a wide array of financing solutions for new and established businesses in the UK.£1,000–£25,000; 11.3%–11.3% APR; 12 months to 10 years
10GoCompareA comparison website that allows users to compare business loan offers from multiple lenders.£0–£0; 0%–0% APR; Varies by lender