February 12, 2026
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Best Lenders to Secure a 240k Short Term Loan

Best Lenders to Secure a 240k Short Term Loan

Discover the best lenders to secure a £240,000 short term loan quickly and easily. Compare rates, terms, and find the right lender for your financial needs.
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 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.

1. Funding Agent

Funding Agent focuses on providing a fast and simple way for UK SMEs to compare multiple business finance options. It is suitable for franchises and small businesses looking for unsecured finance with quick eligibility checks. The platform offers flexible access to different loan types without requiring collateral or lengthy processes.

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. Barclays

Barclays provides a wide range of bank business loans designed for small to medium enterprises including franchise buyers. It typically suits borrowers seeking stable financing with established banking terms. The lender offers varying flexibility, requiring credit checks and collateral depending on loan size and type, with options for repayment tailored to business needs.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £250,000
  • Min APR: 6.3%
  • Max APR: 23.5%
  • Loan Duration: 6–120 months

Services & Industries

  • Finance Types: Commercial loans, SME loans
  • Industries: Banking, Finance

Pros

  • Well-established bank
  • Wide range of services

Cons

  • Longer approval times

Sources: Source

3. HSBC

HSBC specialises in a variety of business loan options, including short-term loans suitable for franchise acquisition or working capital needs. It targets UK SMEs that need competitive rates and flexible lending structures. HSBC offers broad loan and repayment options, generally requiring standard banking checks and creditworthiness assessments.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £300,000
  • Min APR: 7%
  • Max APR: 22%
  • Loan Duration: 3–84 months

Services & Industries

  • Finance Types: Business funding, Asset finance
  • Industries: Banking, Finance

Pros

  • Global reach
  • Strong customer support

Cons

  • Higher APR for small amounts

Sources: Source

4. Lloyds Bank

Lloyds Bank offers a selection of business lending products aimed at supporting UK SMEs with franchise or operational finance. Typical borrowers seek straightforward loan options with manageable repayment schedules. Lloyds Bank's services often balance competitive rates with comprehensive underwriting standards, including collateral or security considerations.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £250,000
  • Min APR: 8.5%
  • Max APR: 19.9%
  • Loan Duration: 1–60 months

Services & Industries

  • Finance Types: SME loans, Trade finance
  • Industries: Banking, Finance

Pros

  • Competitive APR ranges
  • Wide market presence

Cons

  • Limited industry focus

Sources: Source

5. NatWest

NatWest focuses on financial solutions suitable for businesses of various sizes including franchises needing short-term funds. It is appropriate for those who prioritise quick loan access and flexible repayment conditions. NatWest's offerings typically involve lender-driven credit assessments and may require security depending on the borrowing amount.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £150,000
  • Min APR: 9%
  • Max APR: 18%
  • Loan Duration: 1–36 months

Services & Industries

  • Finance Types: Short-term loans, Overdraft solutions
  • Industries: Banking, Finance

Pros

  • Businesses-oriented products
  • Quick loan processing

Cons

  • Specific eligibility requirements

Sources: Source

6. Santander

Santander offers tailored business lending solutions for UK markets, including short-term loans that assist franchise purchases or cash flow management. It is suited to UK SMEs seeking flexible repayment and competitive loan options. The lender generally requires suitable credit profiles and may offer brokered access or direct applications.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £200,000
  • Min APR: 7.2%
  • Max APR: 20.5%
  • Loan Duration: 6–72 months

Services & Industries

  • Finance Types: Business loans, Cash flow solutions
  • Industries: Banking, Finance

Pros

  • Strong UK footprint
  • Flexible repayment

Cons

  • Complex application forms

Sources: Source

7. Metro Bank

Metro Bank targets SMEs with innovative and customer-focused lending options, including short-term business loans. It is suitable for borrowers valuing flexible access and straightforward terms. Metro Bank often emphasises speed and personal service, with credit checks standard for loan approval.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £100,000
  • Min APR: 6%
  • Max APR: 24%
  • Loan Duration: 3–60 months

Services & Industries

  • Finance Types: Short-term loans, Business credit
  • Industries: Banking

Pros

  • Innovative services
  • Customer-first approach

Cons

  • Smaller reach compared to big banks

Sources: Source

8. TSB Bank

TSB Bank offers simple lending options for small businesses, including short-term loans tailored to meet working capital needs. It suits franchise owners and other SMEs looking for clear fee structures and straightforward processes. The bank generally requires eligibility checks and standard collateral assessments where applicable.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 6.8%
  • Max APR: 19.5%
  • Loan Duration: 6–72 months

Services & Industries

  • Finance Types: SME loans, Cash flow management
  • Industries: Banking

Pros

  • Transparent fee structures
  • Solid customer service

Cons

  • Limited online facilities

Sources: Source

9. Clydesdale Bank

Clydesdale Bank supports SMEs with a variety of financial products, including flexible short-term loans for working capital or franchise investment. It typically suits UK SMEs that prefer tailored terms and ongoing lending relationships. The lender often considers collateral and credit criteria, offering structured repayment plans.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £250,000
  • Min APR: 9.5%
  • Max APR: 21%
  • Loan Duration: 3–84 months

Services & Industries

  • Finance Types: Business loans, Overdraft
  • Industries: Banking

Pros

  • Flexible terms
  • Solid SME focus

Cons

  • Higher APR for some products

Sources: Source

10. Yorkshire Bank

Yorkshire Bank delivers loans and financial services designed for entrepreneurs and small businesses needing short-term funds. It is suitable for franchisees requiring flexible products with options for working capital lines. The bank tends to balance service quality with practical accessibility within its lending criteria.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £150,000
  • Min APR: 8.5%
  • Max APR: 19%
  • Loan Duration: 3–60 months

Services & Industries

  • Finance Types: Business loans, Working capital line
  • Industries: Banking

Pros

  • Good customer support
  • Flexible products

Cons

  • Limited branch access

Sources: Source

How to choose

When securing a short-term loan around £240,000, assess your loan amount and APR needs carefully to fit your budget. Verify eligibility requirements upfront as lenders vary on criteria and documentation. Balance the speed of access against flexibility of repayment terms and loan features. Consider whether you need unsecured finance or asset-backed options, checking loan-to-value parameters. Also evaluate fees, early repayment conditions, and lending reputation to ensure the loan suits your franchise cash flow and seasonal patterns.

Conclusion

Choosing the right lender depends on your specific needs. Banks often serve borrowers who want established products with structured terms. Brokers and specialist lenders may offer quicker access or more tailored solutions for franchise buyers or SMEs. Funding Agent is useful for comparing multiple options. Always review current terms directly with lenders to confirm suitability for a 200 thousand pounds loan.

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FAQs

What is a short term loan for £240k?
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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
2BarclaysBarclays offers a wide range of financial services including business loans tailored for small to medium enterprises.£10,000–£250,000; 6.3%–23.5% APR; 6–120 months
3HSBCHSBC provides extensive lending options for businesses, including competitive short-term loan solutions.£5,000–£300,000; 7%–22% APR; 3–84 months
4Lloyds BankLloyds Bank offers financial products geared towards supporting UK businesses through comprehensive lending solutions.£1,000–£250,000; 8.5%–19.9% APR; 1–60 months
5NatWestNatWest specializes in providing financial solutions to businesses of all sizes, including quick-access short-term loans.£3,000–£150,000; 9%–18% APR; 1–36 months
6SantanderSantander offers business lending services tailored for UK markets, supporting a range of short-term financial needs.£2,000–£200,000; 7.2%–20.5% APR; 6–72 months
7Metro BankMetro Bank provides innovative and flexible lending solutions for SMEs, focusing on customer-friendly short-term loans.£5,000–£100,000; 6%–24% APR; 3–60 months
8TSB BankTSB Bank offers straightforward lending options for small businesses, including tailored short-term loan products.£1,000–£200,000; 6.8%–19.5% APR; 6–72 months
9Clydesdale BankClydesdale Bank supports SMEs with a variety of financial products, including flexible short-term loan offerings.£3,000–£250,000; 9.5%–21% APR; 3–84 months
10Yorkshire BankYorkshire Bank delivers financial services including business loans designed to meet short-term requirements for entrepreneurs.£5,000–£150,000; 8.5%–19% APR; 3–60 months