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.
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
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
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
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
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
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
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
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
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
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
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.