February 12, 2026
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Best Lenders to Secure a 240k Business Line of Credit

Best Lenders to Secure a 240k Business Line of Credit

Discover the best lenders to secure a £240,000 business line of credit. Compare rates, terms, and requirements to find the right financing solution for your UK business.
Abdus-Samad Charles
Finance Writer

Head of Content at Funding Agent, with four years’ experience creating practical, easy-to-follow, SEO-informed guidance for UK small and medium-sized businesses.

Best Lenders to Secure a 240k 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.

1. Funding Agent

Funding Agent focuses on providing UK SMEs quick comparisons across a range of business finance options. It is suitable for businesses seeking straightforward, unsecured loans with predictable terms. The platform offers a fast application process with flexible repayment options and clear eligibility criteria.

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 specialises in connecting small businesses with peer investors in the UK. It is suited for SMEs looking for term loans without requiring collateral. The provider offers predictable repayment terms and a relatively quick funding process.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 4.9%
  • Max APR: 19.9%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Term loans
  • Industries: Various

Pros

  • Fast application process
  • No hidden fees

Cons

  • Not ideal for new businesses

Sources: Source

3. MarketFinance

MarketFinance offers business finance solutions focused on flexible working capital. It suits small to medium enterprises requiring flexible repayment options and quick access to funds, commonly in manufacturing or retail sectors. The provider offers growth-oriented finance without requiring traditional collateral.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 3-24 months ⌛

Services & Industries

  • Finance Types: Invoice finance, Loans
  • Industries: Manufacturing, Retail

Pros

  • Flexible repayment
  • Quick access to funds

Cons

  • Higher fees for shorter terms

Sources: Source

4. Iwoca

Iwoca provides small business loans focused on quick application and approval. It is suitable for businesses needing short- to medium-term loans with manageable rates. This provider offers unsecured loans with flexible repayment and quick fund access.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 2%
  • Max APR: 6%
  • Loan Duration: 1-24 months ⌛

Services & Industries

  • Finance Types: Small business loans
  • Industries: Technology, Creative

Pros

  • Quick approval
  • No early repayment fees

Cons

  • Higher rates for short-term loans

Sources: Source

5. Tide

Tide offers a range of financial products targeted at SME growth, including business loans and credit lines. It is suited for service businesses that need manageable online loan options. The provider offers straightforward terms with no monthly fees and fast online management.

Loan Details

  • Min Amount: £15,000
  • Max Amount: £150,000
  • Min APR: 8%
  • Max APR: 20%
  • Loan Duration: 3-36 months ⌛

Services & Industries

  • Finance Types: Business loans, Credit lines
  • Industries: Service

Pros

  • Easy online management
  • No monthly fees

Cons

  • Limited offline support

Sources: Source

6. Starling Bank

Starling Bank provides tailored financial products for small businesses, such as loans and overdrafts. It fits retail and hospitality SMEs that value integrated banking solutions. The provider offers flexible credit lending with no setup fees and digital management.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 5.5%
  • Max APR: 18%
  • Loan Duration: 6-48 months ⌛

Services & Industries

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

Pros

  • Integrated banking app
  • No setup fees

Cons

  • No cash deposits

Sources: Source

7. OnDeck

OnDeck specialises in customised lending solutions for small UK businesses. It is suitable for SMEs in specific industries seeking quick access to unsecured loans with varied credit terms. The provider offers simple applications with tailored repayment options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £150,000
  • Min APR: 5.99%
  • Max APR: 39.9%
  • Loan Duration: 3-24 months ⌛

Services & Industries

  • Finance Types: Small business loans
  • Industries: Healthcare, Construction

Pros

  • Tailored solutions
  • Simple application

Cons

  • Higher interest rates

Sources: Source

8. Fleximize

Fleximize provides flexible loan options tailored to growing and established UK SMEs. It suits professional service and healthcare sectors needing adaptable finance with no early repayment penalties. The provider offers revenue-based finance and loan products with varied durations to match cash flow needs.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 7.9%
  • Max APR: 25%
  • Loan Duration: 3-48 months ⌛

Services & Industries

  • Finance Types: Loans, Revenue-based finance
  • Industries: Professional services, Healthcare

Pros

  • Tailored financing options
  • No early repayment fees

Cons

  • Application process can be lengthy

Sources: Source

9. Funding Xchange

Funding Xchange operates as a marketplace platform, connecting SMEs with multiple lenders to find suitable financing. It is suited for borrowers seeking competitive rates and a wider range of loan options. The platform offers brokered access with varied product types and flexible terms.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £250,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 1-12 months ⌛

Services & Industries

  • Finance Types: Business finance marketplace
  • Industries: Various

Pros

  • Access to multiple lenders
  • Competitive rates

Cons

  • Third-party involvement

Sources: Source

10. Capify

Capify specialises in fast, straightforward business loans aimed at SMEs seeking quick funding. It suits companies in retail and hospitality needing flexible terms and minimal paperwork. The provider focuses on simple loan products with varied APR based on credit quality.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £150,000
  • Min APR: 9%
  • Max APR: 35%
  • Loan Duration: 6-12 months ⌛

Services & Industries

  • Finance Types: Business loans
  • Industries: Restaurants, Retail

Pros

  • Fast funding
  • Minimal paperwork

Cons

  • Higher APR for lower credit scores

Sources: Source

How to choose

When seeking the best lender to secure a 240k business line of credit, consider your specific funding needs and financial profile. Match loan size and APR to your budget while balancing speed against product flexibility. Check each lender's eligibility criteria and repayment terms carefully, especially how they fit with your franchise cash flow and seasonality. Assess if you prefer direct lending from banks or access through brokers and marketplaces. Consider the presence of collateral requirements and whether unsecured lending suits your operation. Finally, review any fees and early repayment terms before making a decision.

Conclusion

Selecting the right lender depends on your business case and financing goals. Bank lenders typically offer structured products with defined terms. Brokers and marketplaces provide access to a broader variety of lenders and tailored options. Specialist lenders may offer more flexibility but could have higher rates. Funding Agent remains a useful option for SMEs wanting quick comparisons across multiple finance providers. Always confirm current costs and terms with each lender as pricing can change over time. This guide focused on options suitable for securing a 200 thousand pounds loan line of credit within the UK market.

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FAQs

What is a business line of credit?
How can I qualify for a £240k business line of credit?
Which lenders offer the best terms for a £240,000 business line of credit?
How do interest rates work on a business line of credit?
What are the advantages of a business line of credit?
Are there any fees associated with a business line of credit?

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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
2Funding CircleFunding Circle connects small businesses who want to borrow with investors who want to lend in the UK.£10,000–£500,000; 4.9%–19.9% APR; 6-60 months
3MarketFinanceMarketFinance provides business finance solutions, enabling businesses to grow with flexible working capital.£5,000–£250,000; 0%–0% APR; 3-24 months
4IwocaIwoca offers small business loans with fast application processes to help businesses manage cash flow.£1,000–£200,000; 2%–6% APR; 1-24 months
5TideTide offers various financial products including a business loan aimed at supporting SMEs in their growth.£15,000–£150,000; 8%–20% APR; 3-36 months
6Starling BankStarling Bank offers financial products tailored for small businesses, including loans and overdrafts.£5,000–£250,000; 5.5%–18% APR; 6-48 months
7OnDeckOnDeck provides tailored lending solutions focused on the specific needs of small businesses in the UK.£5,000–£150,000; 5.99%–39.9% APR; 3-24 months
8FleximizeFleximize offers flexible business loans designed to meet the unique needs of growing and established UK SMEs.£5,000–£500,000; 7.9%–25% APR; 3-48 months
9Funding XchangeFunding Xchange provides a platform for SMEs to connect with lenders, ensuring they find the best financing deals.£3,000–£250,000; 0%–0% APR; 1-12 months
10CapifyCapify offers fast and simple business loans tailored to SMEs, helping them to unlock potential growth opportunities.£5,000–£150,000; 9%–35% APR; 6-12 months
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