Best Lenders to Secure a 120k Business Line of Credit
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 2026-02-12.
Funding Agent offers comparison tools for UK SMEs seeking unsecured business finance. It is suitable for franchise buyers and operators wanting straightforward access to multiple loan options. The platform prioritises speed and simplicity without the need for collateral, offering various repayment and loan term possibilities.
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 lending solutions aimed at UK small businesses requiring flexible credit. It suits franchise operators focused on fast access to working capital with minimal security. The lending offers varying repayment schedules based on borrower credit and business performance.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 19.6%
- Max APR: 45.6%
- Loan Duration: 1–12 months ⌛
Services & Industries
- Finance Types: Business Loan, Line of Credit
- Industries: Food and Beverage, E-commerce
Pros
- Fast approval process
- No hidden fees
Cons
- Higher interest rates for lower credit scores
Fleximize delivers flexible financing options designed for SMEs in the UK, focusing on adaptable loan solutions. It is ideal for businesses requiring working capital with varied repayment structures and responsiveness to changing financial needs. Fleximize offers non-collateral loans that balance competitive costs with borrower flexibility.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 8.9%
- Max APR: 21.9%
- Loan Duration: 3–48 months ⌛
Services & Industries
- Finance Types: Working Capital Loan, Revenue-based Financing
- Industries: Retail, Hospitality
Pros
- Flexible terms
- Reward program for loyal customers
Cons
- Strict eligibility criteria
Esme Loans focuses on straightforward unsecured business loans with a simple application and fast decision process. It suits businesses needing clear loan terms for stable working capital or growth funding. The lender emphasises predictable repayments without hidden fees, but is limited to UK businesses.
Loan Details
- Min Amount: £10,000
- Max Amount: £250,000
- Min APR: 3.5%
- Max APR: 14.9%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Unsecured Business Loan
- Industries: Healthcare, Construction
Pros
- Quick online application
- No early repayment charges
Capify delivers alternative financing designed for quick business funding in the UK. It fits businesses seeking flexible repayment terms often based on future sales, without requiring traditional collateral. This firm caters well to franchise owners needing rapid cash flow injections.
Loan Details
- Min Amount: £5,000
- Max Amount: £300,000
- Min APR: 6.5%
- Max APR: 34.2%
- Loan Duration: 3–24 months ⌛
Services & Industries
- Finance Types: Merchant Cash Advance, Business Loan
- Industries: Hospitality, Retail
Pros
- Flexible repayment options
- Quick access to funds
Cons
- Higher cost compared to traditional bank loans
LendingCrowd offers peer-to-peer loan products connecting SMEs to investor capital in the UK. It is suitable for franchises seeking moderate-sized loans with personalized interest rates. LendingCrowd balances investor risk with borrower needs, often requiring longer approval times.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 5.9%
- Max APR: 20.9%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Peer-to-Peer Loan
- Industries: Manufacturing, Retail
Pros
- No early repayment fees
- Personalized interest rates
OakNorth Bank specialises in larger, bespoke lending solutions tailored to medium-sized UK businesses. It is suited to franchises with substantial borrowing needs and asset-backed security. The bank offers competitive rates with varying loan-to-value bands and personalised repayment terms.
Loan Details
- Min Amount: £500,000
- Max Amount: £10,000,000
- Min APR: 3%
- Max APR: 12%
- Loan Duration: 12–84 months ⌛
Services & Industries
- Finance Types: Business Loan
- Industries: Real Estate, Technology
Pros
- Personalized service
- Fast loan processing
Funding Circle operates a peer-to-peer lending platform connecting small and medium UK businesses with investors. It suits franchise buyers needing straightforward business loans with competitive rates. The service provides flexible loan terms subject to credit assessment and borrowing needs.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 4.7%
- Max APR: 27.3%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Business Loan
- Industries: Manufacturing, Professional Services
Pros
- Personalized rates
- No hidden fees
Cons
- Requires good credit history
Liberis specialises in revenue-based financing for small UK businesses, offering flexible repayments tied to income. It fits franchises and SMEs that prefer variable payments aligned with cash flow rather than fixed loans. The model requires no traditional collateral but involves variable cost depending on business performance.
Loan Details
- Min Amount: £2,500
- Max Amount: £300,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: 3–18 months ⌛
Services & Industries
- Finance Types: Revenue Based Financing
- Industries: Retail, Hospitality
Pros
- Repayments based on business performance
- Quick funding
Cons
- Higher costs if business revenue decreases
ThinCats caters to established UK businesses seeking growth funding with bespoke loan sizes. It suits franchises with solid trading histories, offering loans that are tailored to business needs. The lender provides expert support alongside loan options with varying durations and repayment plans.
Loan Details
- Min Amount: £250,000
- Max Amount: £1,500,000
- Min APR: 6%
- Max APR: 15%
- Loan Duration: 12–72 months ⌛
Services & Industries
- Finance Types: Business Loan
- Industries: Healthcare, Manufacturing
Pros
- Tailored loan sizes
- Expert support
Cons
- Not suitable for start-ups
How to choose
When seeking the best lenders to secure a 120k business line of credit, consider your borrowing requirements carefully. Match loan amount and APR to your cash flow capabilities while ensuring eligibility criteria are met. Prioritise lenders offering flexible repayment options and terms that suit your franchise’s financial cycle. Factor in the speed of access to funds, especially if quick financing is critical. Review fees, collateral requirements, and whether brokered access or direct lending fits your situation better. Always assess how repayments align with your expected income and growth plans.
Conclusion
Choosing the right lender depends on your business size, loan purpose, and security options. Banks often provide larger, secured loans suitable for property or significant expansion, while specialist lenders offer flexible products for working capital or smaller amounts. Brokers and peer-to-peer platforms may offer faster access but with varying costs and terms. Funding Agent is a helpful resource for quick comparisons across multiple providers. Assess each lender’s fit against your need for a 120 thousand pounds loan carefully before committing.
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