February 12, 2026
Lists
Square image with a black border and white background
Best Lenders to Secure a 200k to 250k Short Term Business Loan

Best Lenders to Secure a 200k to 250k Short Term Business Loan

Discover the best lenders offering short term business loans between £200,000 and £250,000. Find flexible terms and fast approval to grow your business 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 200k to 250k 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 provides brokerage services helping UK SMEs quickly compare and access multiple business finance options. It is most suitable for businesses seeking clear, unsecured loan terms with speed and ease of application. The platform emphasises fast eligibility checks and offers flexibility 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. Funding Circle

Funding Circle focuses on providing term loans to UK SMEs with clear, transparent conditions and competitive rates. It is well suited to businesses needing straightforward loans without collateral and who meet strict eligibility rules. The lender offers fixed repayment terms with no early repayment fees, supporting predictable budgeting.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 6%
  • Max APR: 27%
  • Loan Duration: 6–60 months ⌛

Services & Industries

  • Finance Types: Term loans
  • Industries: All Industries

Pros

  • Transparent terms
  • No early payment fees

Cons

  • Strict eligibility criteria

Sources: Source

3. Iwoca

Iwoca offers flexible credit lines aimed at small businesses needing working capital. It is suitable for firms valuing quick access to funds and adaptable repayment options without fixed durations or collateral. This approach supports businesses with varying cash flow patterns.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 12%
  • Max APR: 45%
  • Loan Duration: Flexible ⌛

Services & Industries

  • Finance Types: Credit lines
  • Industries: Retail, Services, E-commerce

Pros

  • Fast approval
  • Flexible terms

Cons

  • High APR for new customers

Sources: Source

4. Tide

Tide delivers business loans and banking services integrated for SMEs. It is often suited to small businesses needing straightforward credit with digital account management and no setup fees. Loans are unsecured and best for those requiring moderate amounts with predictable repayment schedules.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £150,000
  • Min APR: 9.9%
  • Max APR: 34.9%
  • Loan Duration: 3–36 months ⌛

Services & Industries

  • Finance Types: Business loans, Overdrafts
  • Industries: Hospitality, Professional services

Pros

  • Seamless account integration
  • No setup fees

Cons

  • Lower borrowing limits

Sources: Source

5. MarketFinance

MarketFinance specialises in invoice financing to support liquidity for businesses with outstanding receivables. It is suitable for companies needing quick funds against invoices, often in manufacturing and wholesale sectors. The service offers flexible durations and transparent fees without collateral.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £1,000,000
  • Min APR: 7.5%
  • Max APR: 35%
  • Loan Duration: 3–24 months ⌛

Services & Industries

  • Finance Types: Invoice finance
  • Industries: Manufacturing, Wholesale

Pros

  • Fast access to funds
  • No hidden fees

Cons

  • High cost for low volume invoices

Sources: Source

6. Capify

Capify provides alternative lending such as unsecured loans and merchant cash advances, focused on retail and hospitality sectors. It is appropriate for businesses seeking flexible repayment tied to sales rather than fixed schedules. Collateral is generally not required; however, rates tend to reflect risk and speed of access.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £300,000
  • Min APR: 9%
  • Max APR: 50%
  • Loan Duration: 6–12 months ⌛

Services & Industries

  • Finance Types: Merchant cash advance
  • Industries: Retail, Hospitality

Pros

  • Unsecured options
  • Repayment tied to sales

Cons

  • Higher cost for smaller businesses

Sources: Source

7. Fleximize

Fleximize offers flexible term loans and revenue-based financing options for SMEs. It suits businesses needing customised funding with responsible lending considerations. The platform supports a range of industries providing tailored repayment plans adaptable to cash flow patterns.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 8%
  • Max APR: 38%
  • Loan Duration: 1–48 months ⌛

Services & Industries

  • Finance Types: Term loans, Revenue-based financing
  • Industries: Healthcare, Retail, Construction

Pros

  • Customized terms
  • Ample resources

Cons

  • Higher minimum loan duration

Sources: Source

8. LendInvest

LendInvest specialises in short-term property financing for real estate development and buy-to-let investments. It targets businesses requiring loans secured on property assets with specific collateral requirements. The lender offers fast decisions and is suited for those with real estate-focused needs.

Loan Details

  • Min Amount: £50,000
  • Max Amount: £750,000
  • Min APR: 3.89%
  • Max APR: 18%
  • Loan Duration: 1–36 months ⌛

Services & Industries

  • Finance Types: Bridging loans, Buy-to-let loans
  • Industries: Real Estate

Pros

  • Specialized real estate loans
  • Quick decision-making

Cons

  • Requires property collateral

Sources: Source

9. Nucleus Commercial Finance

Nucleus Commercial Finance offers a wide range of financing solutions including asset finance, cash flow loans, and traditional business lending. Suitable for businesses requiring larger loan amounts and more complex arrangements. Applications may involve detailed assessment and tailored repayment options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £2,000,000
  • Min APR: 6%
  • Max APR: 25%
  • Loan Duration: 3–60 months ⌛

Services & Industries

  • Finance Types: Asset finance, Cash flow finance
  • Industries: Various

Pros

  • Variety of products
  • Large maximum loan size

Cons

  • Complex application process

Sources: Source

10. OakNorth Bank

OakNorth Bank provides debt financing for rapidly growing SMEs across multiple industries. It is best for businesses with solid growth prospects that can meet strict eligibility standards. The lender offers sizable loans with fixed terms and various repayment structures tailored to company needs.

Loan Details

  • Min Amount: £250,000
  • Max Amount: £50,000,000
  • Min APR: 5.5%
  • Max APR: 18%
  • Loan Duration: 3–60 months ⌛

Services & Industries

  • Finance Types: Commercial loans, Property finance
  • Industries: Technology, Healthcare, Manufacturing

Pros

  • Large loan amounts
  • Focus on growth companies

Cons

  • Strict eligibility criteria

Sources: Source

How to choose

When securing a short-term business loan between 200k and 250k pounds, consider the lender type and your specific needs. Match loan size and APR to your financial capacity and business plan. Check eligibility requirements carefully to ensure a good fit. Balance the speed of approval against the flexibility of repayment options. Pay attention to collateral requirements and how repayments align with your franchise cash flow and seasonality. Review fees and early repayment policies before committing to a lender.

Conclusion

Choosing the right lender depends on your business type and loan purpose. Banks often suit larger, growth-focused companies with established credit. Brokers like Funding Agent offer access to a wider range of unsecured loans with quicker application processes. Specialist lenders provide tailored financing for asset-backed or sector-specific needs. Always assess terms, eligibility, and repayment flexibility when considering a 200 thousand pounds loan.

Table of Contents
Example H2
Example H3

Let’s launch your project?

arrow button

Find the right lender for you!

Generate offers
Cta image

FAQs

What is a short term business loan?
Which lenders offer £200k to £250k short term business loans in the UK?
What are the typical interest rates for these loans?
How quickly can I get approval for a short term business loan?
What criteria do lenders consider for these loans?
Can I use a short term loan for any business purpose?

Get Funding For
Your Business

Generate offers
Cta image
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
2Funding CircleFunding Circle offers business loans to UK SMEs, with an emphasis on transparent terms and competitive rates.£10,000–£500,000; 6%–27% APR; 6–60 months
3IwocaIwoca provides flexible credit facilities to small businesses for working capital needs, offering fast access to funds.£1,000–£200,000; 12%–45% APR; Flexible
4TideTide is a UK-based financial platform offering business loans and banking solutions tailored for SMEs.£1,000–£150,000; 9.9%–34.9% APR; 3–36 months
5MarketFinanceMarketFinance provides quick and flexible invoice financing solutions to help businesses maintain liquidity and growth opportunities.£5,000–£1,000,000; 7.5%–35% APR; 3–24 months
6CapifyCapify specializes in providing alternative funding solutions such as unsecured business loans and tailored merchant cash advance services.£5,000–£300,000; 9%–50% APR; 6–12 months
7FleximizeFleximize offers flexible funding solutions customized for SMEs looking for tailored financing options with responsible lending practices.£5,000–£500,000; 8%–38% APR; 1–48 months
8LendInvestLendInvest specializes in property financing, offering short-term loans to businesses engaged in real estate developments and buy-to-let properties.£50,000–£750,000; 3.89%–18% APR; 1–36 months
9Nucleus Commercial FinanceProviding a variety of financing solutions including business loans, asset-based lending, and cash flow finance to UK businesses.£5,000–£2,000,000; 6%–25% APR; 3–60 months
10OakNorth BankOakNorth Bank focuses on providing debt financing solutions to fast-growing small and medium-sized enterprises in various sectors.£250,000–£50,000,000; 5.5%–18% APR; 3–60 months
Apply now