Best Lenders to Secure a 200k Short Term 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.
Funding Agent provides a brokered platform to help UK SMEs quickly compare various business finance options. It is suitable for borrowers seeking fast access to a range of unsecured loans with simple application steps and flexible terms. This service emphasises ease of use and quick 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
Barclays focuses on providing both personal and business loans with a broad range of financial products. It is suited for borrowers such as franchise buyers seeking established lenders with transparent terms and flexible repayment options. Barclays typically requires credit assessment and offers varied loan durations to match different needs.
Loan Details
- Min Amount: £10,000
- Max Amount: £250,000
- Min APR: 4.9%
- Max APR: 19.9%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Personal Loan, Business Loan, Overdraft
- Industries: Retail, Finance, Construction
Pros
- Established reputation
- Wide range of services
Cons
- Higher interest rates for lower credit scores
HSBC offers a global banking network with a focus on business loans and financial solutions catering to diverse industries. It is appropriate for SMEs seeking flexible credit options backed by a large institution, including various repayment and security arrangements. HSBC’s product range accommodates both short and medium-term financing needs.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 3.3%
- Max APR: 22.9%
- Loan Duration: 1–84 months ⌛
Services & Industries
- Finance Types: Business Loan, Credit Line
- Industries: Finance, Healthcare, Energy
Pros
- Global presence
- Diverse loan options
Cons
- Complex application process
Lloyds Bank is a major UK retail and commercial bank offering a comprehensive range of loan products. It mainly suits borrowers seeking established lenders with flexible repayment terms and options such as mortgages and business loans. Lloyds typically requires credit checks and may offer variable security options depending on the loan type.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 5.9%
- Max APR: 16.9%
- Loan Duration: 12–240 months ⌛
Services & Industries
- Finance Types: Mortgage, Business Loan
- Industries: Technology, Retail, Transport
Pros
- Large network
- Flexible repayment plans
Cons
- Strict credit score requirements
NatWest provides business loans and financial services designed to support UK businesses across several sectors. It is suitable for franchise buyers and SMEs needing straightforward funding with dedicated support. NatWest offers a mix of loan products with varying speed and flexibility depending on the application and credit profile.
Loan Details
- Min Amount: £2,000
- Max Amount: £350,000
- Min APR: 4.5%
- Max APR: 20.5%
- Loan Duration: 1–84 months ⌛
Services & Industries
- Finance Types: Business Loan, Cash Advance
- Industries: Hospitality, Transport, Healthcare
Pros
- Dedicated business support
- Simple application process
Cons
- Higher APR for smaller loans
6. Santander UK
Santander UK offers personal and business lending products tailored for SMEs seeking flexible loan solutions. This lender is appropriate for those requiring adaptable amounts and repayment periods, with a focus on clear terms. Santander emphasises customer support and a range of finance types, although branch availability may vary.
Loan Details
- Min Amount: £5,000
- Max Amount: £200,000
- Min APR: 5.9%
- Max APR: 23.4%
- Loan Duration: 6–84 months ⌛
Services & Industries
- Finance Types: Business Loan, Fixed Rate
- Industries: Finance, Retail, Agriculture
Pros
- Comprehensive customer support
- Flexible loan amounts
Metro Bank is a retail and commercial lender committed to providing straightforward loans with flexible repayment options. It targets UK SMEs requiring fast access to funding with clear fees and transparent policies. Metro Bank offers flexible credit and overdraft products suitable for a range of small business needs.
Loan Details
- Min Amount: £2,000
- Max Amount: £250,000
- Min APR: 6%
- Max APR: 21%
- Loan Duration: 3–60 months ⌛
Services & Industries
- Finance Types: Business Loan, Overdraft
- Industries: Retail, Technology, Services
Pros
- Extended opening hours
- Transparent fees
TSB Bank offers varied banking services including business and consumer loans aimed at SMEs and individuals. This provider is suitable for borrowers seeking competitive fixed APR loans with straightforward application and no setup fees. TSB delivers a range of financing options with a focus on predictable repayment schedules.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 5.2%
- Max APR: 19.5%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Consumer Loan, Business Loan
- Industries: Finance, Retail, Education
Pros
- Competitive fixed APR
- No setup fees
Clydesdale Bank specialises in personal and business banking services with lending options that offer flexible terms. Suitable for SMEs looking for tailored finance solutions, it provides options with varying durations and interest rates. The lender supports a range of industries with a focus on adaptable repayment plans.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 5.4%
- Max APR: 18.7%
- Loan Duration: 6–240 months ⌛
Services & Industries
- Finance Types: Personal Loan, Business Loan
- Industries: Healthcare, Retail, Manufacturing
Pros
- Strong customer service
- Flexible terms
Cons
- Complex product requirements
Virgin Money provides innovative financial products through independent brand-licencees, focusing on business and mortgage loans. It is ideal for SMEs looking for flexible loan terms within technology, healthcare, and service sectors. Virgin Money emphasises brand strength and modern loan solutions tailored to varied business needs.
Loan Details
- Min Amount: £5,000
- Max Amount: £150,000
- Min APR: 4.5%
- Max APR: 19.9%
- Loan Duration: 12–84 months ⌛
Services & Industries
- Finance Types: Business Loan, Mortgage
- Industries: Technology, Healthcare, Services
Pros
- Innovative products
- Strong brand
Cons
- Higher minimum loan amounts
How to choose
When securing a 200 thousand pounds loan, consider how the loan size and APR fit your budget and cash flow. Check each lender’s eligibility requirements carefully. Balance the speed of funding against the flexibility of repayment options available. Assess whether collateral is required and how that affects your loan terms. Review fees, early repayment policies, and lender reputation before making a decision.
Conclusion
The choice between banks, brokers, and specialist lenders depends on your loan purpose and business needs. Banks may offer comprehensive products with structured terms while brokers like Funding Agent facilitate access to multiple options quickly. Specialist lenders often focus on niche needs or faster turnaround but may require specific eligibility criteria. Matching these factors to your requirements can help secure the best 200 thousand pounds loan for your franchise or business operation.