February 12, 2026
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Best Lenders to Secure a 150k to 200k Short Term Business Loan

Best Lenders to Secure a 150k to 200k Short Term Business Loan

Discover the best lenders offering short term business loans between £150,000 and £200,000 in the UK. Compare rates, terms, and apply with ease today.
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 Lenders to Secure a 150k to 200k Short Term Business Loan

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.

1. Funding Agent

Funding Agent focuses on helping UK SMEs compare various business finance options through a streamlined process. It is typically suitable for businesses seeking short to medium term loans with clear eligibility criteria. The provider emphasises fast application and eligibility matching without requiring collateral.

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. Lending Crowd

Lending Crowd provides peer-to-peer business loans focused on supporting UK SMEs in achieving financial growth and stability. This lender is suitable for franchise buyers and operators who want straightforward funding options. Their service offers online applications with no early repayment penalties.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 6.5%
  • Max APR: 22.5%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Peer-to-peer Loans
  • Industries: Retail, Healthcare

Pros

  • No early repayment fees
  • Fast online application

Cons

  • Potentially higher APR for riskier applications

Sources: Source

3. Funding Circle

Funding Circle is a peer-to-peer lending platform offering UK SMEs access to business loans with efficient approval times. It is suitable for franchise owners needing clear terms and quick loan funding. Users should consider the platform’s eligibility criteria and repayment options when applying.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 4.9%
  • Max APR: 29.9%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Peer-to-peer Loans, Business Loans
  • Industries: Hospitality, Construction

Pros

  • Transparent pricing
  • Quick disbursement

Cons

  • Strict eligibility criteria

Sources: Source

4. Iwoca

Iwoca provides flexible short-term business loans to UK SMEs without hidden fees. It suits those seeking speed and simplicity with a range of repayment terms. The lender offers unsecured credit options that can be suitable for working capital needs.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 9%
  • Max APR: 25%
  • Loan Duration: 1-12 months ⌛

Services & Industries

  • Finance Types: Business Loans, Flexible Credit, Short-term Loans
  • Industries: Retail, E-commerce

Pros

  • Quick loan processing
  • No hidden fees

Cons

  • High APR for short terms

Sources: Source

5. RateSetter

RateSetter specialises in peer-to-peer lending with personal and business loans designed for UK SMEs. It is suitable for borrowers seeking transparent fees and flexible term options. The platform offers a straightforward application process with clear repayment terms.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £150,000
  • Min APR: 3.9%
  • Max APR: 16.9%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Business Loans, Peer-to-peer Loans
  • Industries: Technology, Education

Pros

  • No early repayment charges
  • Transparent fees

Cons

  • Strict credit requirements

Sources: Source

6. OakNorth Bank

OakNorth Bank is a UK specialist bank offering customised lending solutions for SMEs requiring larger loan amounts. It suits borrowers needing structured loans often secured against assets or property. The bank provides flexible terms tailored to business needs.

Loan Details

  • Min Amount: £500,000
  • Max Amount: £5,000,000
  • Min APR: 4.5%
  • Max APR: 14.5%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Business Loans, Mortgages
  • Industries: Healthcare, Manufacturing

Pros

  • Customized loan solutions
  • Suitable for larger funding needs

Cons

  • High minimum loan amount

Sources: Source

7. Metro Bank

Metro Bank provides traditional business loans with emphasis on personalised service and quick lending decisions. This lender suits those who prefer localised support and clear loan products. It offers loans with flexible terms and various financing options.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £250,000
  • Min APR: 7.5%
  • Max APR: 20%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Business Loans, Overdrafts
  • Industries: Retail, Real Estate

Pros

  • Personalized service
  • Quick decisions

Cons

  • Limited branch locations

Sources: Source

8. Aldermore Bank

Aldermore Bank offers a broad range of business loans and asset finance solutions, catering to SMEs and real estate financing. This institution suits franchisees requiring tailored loan structures with manageable repayment plans. Loans may be secured and often come with flexible term options.

Loan Details

  • Min Amount: £25,000
  • Max Amount: £500,000
  • Min APR: 5%
  • Max APR: 15%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Business Loans, Asset Finance
  • Industries: Real Estate, Logistics

Pros

  • Flexible repayment plans
  • Specialist lending

Cons

  • Higher APR on smaller loans

Sources: Source

9. Atom Bank

Atom Bank is a digital lender focused on fast-growing SMEs, offering competitive business loans digitally. It’s well suited for franchise buyers comfortable with a fully online experience. Flexible business loan options come with competitive interest rates but no physical branches.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £500,000
  • Min APR: 4.9%
  • Max APR: 13.9%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Business Loans, Mortgages
  • Industries: Technology, Retail

Pros

  • Digital service
  • Competitive rates

Cons

  • No physical branches

Sources: Source

10. Starling Bank

Starling Bank operates as a digital challenger bank, providing business loans and overdrafts to UK SMEs. It is suitable for franchisees seeking quick and easy online lending with software integration. The service focuses on speed and convenience through digital channels only.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 7%
  • Max APR: 18%
  • Loan Duration: 6-48 months ⌛

Services & Industries

  • Finance Types: Business Loans, Overdrafts
  • Industries: Hospitality, Retail

Pros

  • Easy online application
  • Integration with accounting software

Cons

  • Limited to digital channels

Sources: Source

How to choose

When selecting a lender for a short term business loan between 150k and 200k pounds, consider your loan size and APR carefully to fit your budget and cash flow. Evaluate lender criteria including eligibility, fees, and early repayment terms to avoid surprises. Balance speed of funding with flexibility in repayment and loan structure. Check if the loan requires collateral and if repayment types suit your business model. Consider lender types, whether digital platforms, specialist banks, or brokers, depending on your needs and preferences.

Conclusion

Choosing the right lender depends on your specific business needs. Banks often provide structured loans for larger or asset-backed funding, while brokers offer wider lender access to match diverse requirements. Specialist providers may deliver faster, more flexible short term solutions but with varying eligibility. Funding Agent is valuable for SMEs wanting quick comparisons among multiple options. Always verify current costs and terms to ensure the product suits your borrowing purpose for loans around 200 thousand pounds.

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FAQs

What is a short term business loan?
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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
2Lending CrowdLending Crowd offers competitive business loans in the UK, focusing on helping SMEs achieve financial stability and growth.£5,000–£250,000; 6.5%–22.5% APR; 6-60 months
3Funding CircleFunding Circle is a UK-based peer-to-peer lending platform providing business loans to small businesses with quick approval times.£10,000–£500,000; 4.9%–29.9% APR; 6-60 months
4IwocaIwoca offers flexible business loans to small businesses in the UK, with no hidden fees and quick decision making.£1,000–£200,000; 9%–25% APR; 1-12 months
5RateSetterRateSetter provides personal and business loans through a peer-to-peer lending platform, offering a flexible approach to financing.£2,000–£150,000; 3.9%–16.9% APR; 12-60 months
6OakNorth BankOakNorth Bank is a specialist bank in the UK that offers tailor-made lending solutions, especially for SMEs.£500,000–£5,000,000; 4.5%–14.5% APR; 6-60 months
7Metro BankMetro Bank offers straightforward business loan products with an emphasis on personal service and fast decision making.£2,000–£250,000; 7.5%–20% APR; 12-60 months
8Aldermore BankAldermore Bank provides a range of financial products for businesses, including loans for SMEs and real estate financing.£25,000–£500,000; 5%–15% APR; 6-60 months
9Atom BankAtom Bank specializes in digital banking and offers competitive business loans for fast-growing SMEs.£50,000–£500,000; 4.9%–13.9% APR; 6-60 months
10Starling BankStarling Bank is a digital challenger bank offering a range of financial products including competitive business loans.£5,000–£250,000; 7%–18% APR; 6-48 months
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