Best Lenders to Secure a 150k to 200k 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 operates as a finance broker focusing on unsecured business loans, MCA loans, and working capital solutions for UK SMEs. It is suitable for businesses seeking quick comparisons and straightforward eligibility checks. The process emphasises speed and simplicity without the need for collateral, offering a range of flexible repayment terms and options.
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
Funding Circle is a peer-to-peer lending platform connecting private investors directly to SMEs. It is best suited for franchises and small businesses seeking business or property development loans with predictable terms. The platform offers relatively quick decisions and access to peer-distributed funding with variable collateral requirements depending on the loan type.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 4.9%
- Max APR: 20%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Property Development Loans
- Industries: Construction, Healthcare
Pros
- Peer-to-peer model reduces costs
- Quick decision making
Cons
- Higher APR for less creditworthy businesses
iwoca offers credit facilities leveraging technology to provide flexible funding primarily through short-term loans and credit lines. It caters to SMEs needing fast access to working capital or flexible financing with shorter repayment periods. The provider allows for swift approvals without significant collateral requirements, supporting e-commerce and retail sectors.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 3.9%
- Max APR: 30%
- Loan Duration: 1–12 months ⌛
Services & Industries
- Finance Types: Flexible Loans, Credit Lines
- Industries: E-commerce, Retail
Pros
- Fast approval process
- No hidden fees
Lloyds Bank provides a broad range of bank business loans and asset finance products. It is suitable for larger SMEs needing term loans or asset-backed lending with competitive rates and flexible repayment schedules. The bank supports varied industries and offers personalised service and standard underwriting criteria.
Loan Details
- Min Amount: £10,000
- Max Amount: £5,000,000
- Min APR: 2.5%
- Max APR: 14.5%
- Loan Duration: 12–120 months ⌛
Services & Industries
- Finance Types: Term Loans, Asset Finance
- Industries: Real Estate, Education
Pros
- Wide array of loan products
- Strong customer support
Cons
- Slower application process
Barclays is a global bank offering comprehensive business loans, overdrafts, and insurance products. It suits SMEs that require access to large loan amounts with options across various industries. Barclays supports structured lending with global financial service capabilities, often requiring collateral depending on loan type and client profile.
Loan Details
- Min Amount: £1,000
- Max Amount: £2,500,000
- Min APR: 3.5%
- Max APR: 15%
- Loan Duration: 6–84 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Technology, Agriculture
Pros
- Global reach
- Comprehensive financial services
Cons
- Complex application process
NatWest delivers business loans and working capital solutions primarily aimed at UK SMEs. It is well suited for franchises needing term loans with personalised advice and SME-focused support. NatWest provides bank-backed financing with flexible repayment options and moderate application times.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 2.9%
- Max APR: 12%
- Loan Duration: 12–48 months ⌛
Services & Industries
- Finance Types: Term Loans, Working Capital
- Industries: Hospitality, Retail
Pros
- Strong SME focus
- Personalized advice
HSBC UK offers a variety of business loans and trade finance solutions for UK SMEs. It caters to businesses requiring tailored lending with flexible repayment and collateral options. HSBC brings international trade expertise and diverse finance offerings suited to manufacturing and export sectors.
Loan Details
- Min Amount: £1,000
- Max Amount: £3,000,000
- Min APR: 3%
- Max APR: 13.5%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Business Loans, Trade Finance
- Industries: Manufacturing, Exports
Pros
- Global trade expertise
- Diverse financial offerings
Cons
- Higher fees for certain services
8. Santander UK
Santander UK specialises in commercial mortgages and business loans with competitive rates for SMEs. It is appropriate for franchises and businesses seeking moderate loan amounts for property finance or working capital. Santander provides structured financial solutions with eligibility focused on SME sectors like professional services and retail.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 3.5%
- Max APR: 12%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Commercial Mortgages, Business Loans
- Industries: Professional Services, Retail
Pros
- Attractive interest rates
- Helpful customer service
Cons
- Eligibility criteria may be strict
Metro Bank provides business loans and asset purchase finance with straightforward loan terms. It is geared towards SMEs looking for flexible repayment options and accessible banking services. Metro Bank focuses on efficient lending procedures suitable for sectors including transport and retail.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 4%
- Max APR: 18%
- Loan Duration: 1–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Asset Purchase
- Industries: Transport, Retail
Pros
- Innovative banking solutions
- Flexible repayment options
TSB Bank offers personalised business loans and property finance targeted at SMEs across the UK. The bank is suited to franchises seeking community-focused service with loan options that balance flexibility and structured repayment plans. TSB typically supports sectors like construction and healthcare with straightforward application processes.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 4.5%
- Max APR: 15.5%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Property Finance
- Industries: Construction, Healthcare
Pros
- Personal approach to banking
- Good customer service
Cons
- Fewer loan options compared to competitors
How to choose
When seeking a 150k to 200k business line of credit, consider lenders that align with your franchise's specific needs and financial profile. Evaluate loan sizes and APRs relative to your cash flow and creditworthiness. Assess eligibility criteria carefully and be mindful of the trade-offs between speed and loan flexibility. Look for lenders offering repayment terms that suit your seasonality and business cycles. Check fees, collateral requirements, and early repayment policies before committing. Finally, determine whether direct lenders, brokers, or specialist providers best meet your financing goals.
Conclusion
Choosing the right lender depends on your business’s use case and preferences. Bank lenders typically suit franchises seeking traditional loans with structured underwriting and larger sums. Brokers like Funding Agent allow faster access to multiple options and can be suitable for straightforward unsecured lending. Specialist providers may offer more flexible or niche finance tailored to specific industries or short-term needs. Understanding each type’s strengths helps align financing with your 200 thousand pounds loan requirements. Always verify terms directly with providers to ensure they fit your business circumstances.
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