Best Lenders to Secure a 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 specialises in brokerage services that help UK SMEs quickly compare business finance options. It is typically suited for franchise buyers and operators who need straightforward access to multiple lending products. The platform focuses on speed, flexibility, and offering unsecured finance solutions with minimal collateral requirements.
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
MarketFinance provides invoice finance and business loan products through a technology-driven platform designed to support cash flow for UK businesses. It is well suited for franchise buyers seeking efficient financing backed by receivables and short-term credit. Offers a balance of funding speed and flexible repayment options but typically requires business documentation for approval.
Loan Details
- Min Amount: £10,000
- Max Amount: £1,000,000
- Min APR: 5%
- Max APR: 20%
- Loan Duration: 3–24 months ⌛
Services & Industries
- Finance Types: Invoice Financing, Business Loans
- Industries: E-commerce, Logistics, IT services
Pros
- Fast funding
- Tech-driven platform
Cons
- Premium interest rates for some products
OakNorth Bank is a specialist lender offering tailored business loans and commercial mortgages for growth-focused companies. It is suitable for franchise buyers and operators looking for larger funding amounts with structured repayment plans. This bank offers flexible lending with detailed financial underwriting, often requiring security or collateral aligned with loan value.
Loan Details
- Min Amount: £25,000
- Max Amount: £5,000,000
- Min APR: 4%
- Max APR: 14%
- Loan Duration: 12–84 months ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Mortgages
- Industries: Construction, Retail, Healthcare
Pros
- Tailored solutions
- High funding limits
iwoca specialises in flexible lines of credit and short-term loans designed for small businesses that need fast access to cash. It suits franchise operators requiring quick decisions with simple eligibility and less reliance on fixed assets. This lender prioritises speed and convenience, providing unsecured credit with flexible repayment schedules.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 12%
- Max APR: 50%
- Loan Duration: 1–12 months ⌛
Services & Industries
- Finance Types: Line of Credit, Short-term Loans
- Industries: Retail, Food & Beverage, Services
Pros
- Quick approval
- Short loan terms
Funding Circle operates as a peer-to-peer lending platform connecting small businesses with investors for business loans. It is typically suitable for franchise buyers needing straightforward, unsecured business financing. The process offers relatively quick access to funds with fixed repayments but varying interest based on credit profile.
Loan Details
- Min Amount: £10,000
- Max Amount: £500,000
- Min APR: 7.9%
- Max APR: 18.3%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Business Loans
- Industries: Retail, Manufacturing, Professional Services
Pros
- Peer-to-peer lending
- Quick application
Cons
- Interest rates vary widely
Revolut Business offers integrated financial products including business loans, expense management, and multi-currency accounts suited for tech-savvy businesses. It is appropriate for franchise buyers interested in digital platforms with flexible short-term lending and overdraft options. The service emphasises convenience, currency flexibility, and efficient management of business finances.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 6.5%
- Max APR: 20%
- Loan Duration: 3–12 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdraft
- Industries: Tech Startups, Consultancy, E-commerce
Pros
- Integrated platform
- Multiple currencies
Starling Bank provides fully digital business accounts alongside competitive loan and overdraft products. It is suited for franchise buyers seeking transparent lending with no setup fees and flexible repayment options. The bank offers efficient online services with tailored financing for SMEs and entrepreneurs.
Loan Details
- Min Amount: £5,000
- Max Amount: £300,000
- Min APR: 5.5%
- Max APR: 15%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Freelancers, E-commerce, Healthcare
Pros
- No setup fees
- Flexible terms
Barclays Bank is a longstanding global bank providing a broad array of business lending solutions including loans and overdrafts. It is generally suitable for franchise buyers needing established banking relationships and comprehensive financial services. The bank offers structured lending with clear eligibility and often requires some security or credit history.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 6%
- Max APR: 18%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Various
Pros
- Reputable bank
- Wide range of services
Cons
- Strict eligibility criteria
Lloyds Bank offers tailored financing solutions suited to medium and large-scale businesses, including loans and commercial mortgages. It is apt for franchise buyers who require secure loans with structured terms and strong customer support. The bank focuses on creditworthiness and may require collateral aligned with loan size.
Loan Details
- Min Amount: £5,000
- Max Amount: £200,000
- Min APR: 5.9%
- Max APR: 16.7%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Mortgages
- Industries: Retail, Manufacturing
Pros
- Strong customer service
- Established financial institution
NatWest Bank provides a wide range of business loans and invoice financing products aimed at diverse business needs. It is suitable for franchise operators requiring flexible repayment options and access to varied lending solutions. The bank supports customers through a structured application process, often considering security and financial history.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 6.5%
- Max APR: 20%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Invoice Financing
- Industries: Various
Pros
- Flexible repayment options
- Wide product range
Cons
- Complex application process
How to choose
When selecting the best lenders to secure a 200 thousand pounds business line of credit, start by matching the loan size and APR with your business budget and cash flow. Carefully review eligibility criteria and consider how quickly funds are needed versus the flexibility of repayment terms. Assess whether the lender requires collateral and if their offers include unsecured options. It is important to check fees, application processes, and any early repayment conditions. Make sure the loan terms align with your franchise’s seasonality and growth plans before applying.
Conclusion
The choice of lender depends on your business needs and loan purpose. Banks typically offer structured loans with security and longer terms, suitable for established franchises and higher amounts. Brokers like Funding Agent provide access to multiple lenders and faster comparisons, ideal for quick unsecured credit. Specialist providers may fit niche requirements such as invoice financing or short-term credit. Always ensure you verify current costs and terms to select the best fit for securing a 200 thousand pounds loan.
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