Best Lenders to Secure a 220k 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 platform to compare various business finance options quickly. It is suitable for UK SMEs seeking short-term, unsecured loans with a focus on fast application processing. The provider offers flexibility without requiring collateral, allowing applicants to efficiently find matched finance options via a brokered approach.
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 focuses on small business lending through an online marketplace model. It is typically suitable for established SMEs seeking competitive loan terms with a fixed repayment schedule. The platform emphasises transparency and straightforward application processes without requiring brokers.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 5.5%
- Max APR: 15%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Business Loans, Revolving Credit
- Industries: Technology, Manufacturing, Services
Pros
- Competitive rates
- Online convenience
Cons
- Strict eligibility criteria
Iwoca specialises in flexible credit lines designed for small businesses needing quick access to funds. This provider suits those seeking short-term financing with transparent pricing and repayment flexibility. Security requirements are generally minimal, aimed at facilitating fast credit availability.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 3.9%
- Max APR: 12%
- Loan Duration: 1-12 months ⌛
Services & Industries
- Finance Types: Credit Lines, Business Loans
- Industries: Retail, Food & Beverages, Professional Services
Pros
- Quick funding
- No early repayment fees
Cons
- Limited maximum loan size
Barclays provides a variety of business loans tailored to support growth ambitions and working capital needs. It is generally suited for SMEs that prefer traditional banking arrangements with secured or unsecured options. The lender offers standard terms with varying repayment flexibilities depending on the loan product.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 6%
- Max APR: 16%
- Loan Duration: 12-60 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Retail, Healthcare, Finance
Pros
- Reputable bank
- Wide range of services
HSBC offers business loans along with broader banking solutions aimed at SMEs looking for growth capital. Their loans typically suit those requiring flexibility in use and repayment, with options for secured funding. The provider supports a range of industries with access to commercial mortgage and loan products.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 5%
- Max APR: 14%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Mortgages
- Industries: Technology, Pharmaceutical, Manufacturing
Pros
- Global presence
- Diverse loan options
Lloyds Bank offers business loans and asset finance options tailored to SMEs. It is suitable for businesses seeking flexible repayment terms with options for secured and unsecured lending. The bank provides support for various industries with emphasis on long-term financing solutions.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 6.5%
- Max APR: 15%
- Loan Duration: 12-72 months ⌛
Services & Industries
- Finance Types: Business Loans, Asset Finance
- Industries: Construction, Retail, Logistics
Pros
- Flexible repayment terms
- Strong customer support
Cons
- High interest on smaller loans
NatWest delivers SME loan products with quick approval designed to meet sector-specific needs. It suits small businesses seeking tailored finance solutions in regulated industries. The bank provides various repayment structures and may require collateral depending on the product.
Loan Details
- Min Amount: £500
- Max Amount: £350,000
- Min APR: 4.9%
- Max APR: 17.5%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Business Loans, Sector-specific Finance
- Industries: Healthcare, Education, Hospitality
Pros
- Sector-specific expertise
- Variety of loan products
8. Santander
Santander offers various business banking and lending products aimed at SMEs in multiple sectors. It is suitable for borrowers looking for competitive interest rates and standard lending terms. Security requirements and repayment options vary by product and borrower profile.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 5.2%
- Max APR: 14.9%
- Loan Duration: 12-60 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: Retail, Agriculture, Energy
Pros
- Competitive pricing
- Robust support
Cons
- Complex application process
Metro Bank is a retail bank known for customer service and straightforward lending to SMEs. It suits businesses looking for accessible finance with competitive rates and personalised support. Metro Bank offers mostly unsecured loans with standard term lengths and repayment options.
Loan Details
- Min Amount: £2,500
- Max Amount: £250,000
- Min APR: 7%
- Max APR: 20%
- Loan Duration: 6-48 months ⌛
Services & Industries
- Finance Types: Business Loans, Working Capital
- Industries: Retail, IT Services, Manufacturing
Pros
- Excellent customer service
- Extended branch hours
Starling Bank is a digital-only challenger bank delivering business loans and overdrafts. It suits SMEs that prioritise a fully online experience with efficient loan access and low fees. Starling focuses on technology-driven processes and limited physical branch interaction.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 5.8%
- Max APR: 13.9%
- Loan Duration: 6-24 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdrafts
- Industries: E-commerce, Media, Technology
Cons
- Limited service offerings
How to choose
When seeking the best lenders to secure a 220k short term loan, consider matching your loan size and APR with your budget and repayment capacity. Assess eligibility criteria carefully and balance the need for quick funding against flexibility in terms and conditions. Check if collateral or security is required and evaluate the repayment options and terms to fit your cash flow and seasonal variations. Review any fees, charges, and early repayment penalties that might apply. Comparing brokered and direct lender options can also help find the best fit for your franchise financing needs.
Conclusion
Matching your loan needs to the right provider is essential. Banks often serve established businesses and borrowers seeking traditional loans with collateral options. Brokers like Funding Agent connect SMEs with multiple finance providers for faster comparison and access to unsecured loans. Specialist lenders may focus on specific sectors or loan types, such as asset-backed or flexible credit lines. For those wanting quick comparisons across various offers, Funding Agent remains a relevant option. Always verify current terms and conditions before committing to any loan product.
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