Best Lenders to Secure a 250k 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 focusses on brokering options for unsecured business loans and working capital, serving UK SMEs. It typically suits businesses seeking fast, transparent comparisons across multiple finance types. The service emphasises efficiency and ease of application with quick eligibility checks and minimal collateral requirements.
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 Business focuses on bank business loans including overdrafts and commercial mortgages. It is suitable for SMEs looking for tailored lending with flexible repayment options. Barclays offers a balance of speed and thorough client support, though some applications may require stricter criteria or collateral.
Loan Details
- Min Amount: £10,000
- Max Amount: £250,000
- Min APR: 4.6%
- Max APR: 14.9%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdraft, Commercial Mortgages
- Industries: All industries
Pros
- Reputable financial institution
- Comprehensive business support
Cons
- Higher APR for smaller loans
- Strict eligibility requirements
Lloyds Bank provides a variety of bank lending options, including asset finance and invoice factoring. Its services fit businesses aiming to expand or enhance cash flow management. Lloyds offers flexibility in repayment and typically requires some security or guarantees depending on loan type.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 3.4%
- Max APR: 12.5%
- Loan Duration: 1–72 months ⌛
Services & Industries
- Finance Types: Business Loans, Asset Finance, Invoice Factoring
- Industries: All industries
Pros
- Low APR rates
- Flexible options
Cons
- May require personal guarantee
- Complex application process
4. Santander UK
Santander UK offers a range of business loans and charge cards designed to support growth in sectors like retail and manufacturing. The lender suits SMEs needing tailored finance with options for flexible repayments. Security requirements and credit evaluation processes apply depending on the loan product.
Loan Details
- Min Amount: £2,000
- Max Amount: £300,000
- Min APR: 4%
- Max APR: 16.5%
- Loan Duration: 6–84 months ⌛
Services & Industries
- Finance Types: Business Loans, Business Charge Cards
- Industries: Retail, Manufacturing, Services
Pros
- Wide range of options
- Strong customer service
Cons
- Higher APR for unsecured loans
HSBC UK provides business loans with options including overdrafts and equipment financing. The bank serves UK SMEs of various industries, offering global reach and quick loan processing. Loan availability often depends on creditworthiness and may require security or detailed evaluation.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 3.5%
- Max APR: 11.9%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdraft, Equipment Financing
- Industries: All industries
Pros
- Quick processing
- Global presence
Cons
- Requires good credit history
NatWest delivers tailored finance solutions including start-up loans and growth funding. It targets SMEs in sectors like technology and healthcare that seek both support and sustainable expansion. NatWest balances customer support with financial flexibility, often requiring eligibility assessments and collateral.
Loan Details
- Min Amount: £1,000
- Max Amount: £350,000
- Min APR: 5%
- Max APR: 14.5%
- Loan Duration: 3–84 months ⌛
Services & Industries
- Finance Types: Start-up Loans, Growth Funding, Business Loans
- Industries: Technology, Manufacturing, Healthcare
Pros
- Strong customer support
- Innovative financial products
Cons
- Complex eligibility criteria
Metro Bank delivers transparent and straightforward business loans with a focus on personalised service. It is suited for SMEs in retail and hospitality sectors seeking clear fee structures and flexible repayment terms. Physical branch access is limited but clients benefit from tailored loan solutions.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 6.9%
- Max APR: 22.9%
- Loan Duration: 3–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Mortgages
- Industries: Retail, Hospitality
Pros
- Transparent fees
- Personalized service
Cons
- Limited physical locations
TSB Bank offers a set of flexible financial products including overdrafts and asset finance. It focuses on SMEs in retail and service industries with an emphasis on straightforward application and competitive rates. Loan options typically require assessment of credit and ability to repay.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 4.5%
- Max APR: 17.5%
- Loan Duration: 6–84 months ⌛
Services & Industries
- Finance Types: Business Loans, Overdraft, Asset Finance
- Industries: Retail, Services
Pros
- Competitive rates
- Simple application
Clydesdale Bank provides loans and commercial mortgages geared towards small businesses managing cash flow or growth. It is suited for sectors like agriculture and manufacturing, offering flexible terms with a local expertise approach. Loan structures typically consider security and repayment terms based on business needs.
Loan Details
- Min Amount: £10,000
- Max Amount: £250,000
- Min APR: 5.5%
- Max APR: 20.5%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Commercial Mortgages
- Industries: Agriculture, Manufacturing
Pros
- Local expertise
- Flexible terms
Cons
- Higher APR for smaller amounts
Aldermore Bank focuses on asset and invoice finance alongside traditional business loans. It is generally suited for SMEs in logistics, technology, and construction requiring growth capital and operational cash flow. Loan offerings emphasise flexibility but may have restrictions in availability outside the UK.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 5.9%
- Max APR: 19.9%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Invoice Finance, Asset Finance, Business Loans
- Industries: Logistics, Technology, Construction
Pros
- Flexible loan solutions
- Good support
Cons
- Not widely available outside the UK
How to choose
When seeking the best lenders to secure a 250k short term loan, assess how loan amounts and APRs align with your budget and repayment capacity. Evaluate eligibility criteria carefully to ensure you qualify. Balance the need for speed against product flexibility, especially if you require quick access to funds or customisable repayment schedules. Consider collateral requirements and whether unsecured options are available. Reviewing lender fees and early repayment terms can help avoid unexpected costs. Always match lender offerings to your franchise’s cash flow and seasonality needs.
Conclusion
Choosing the right lender depends on your specific use case and loan requirements. Bank lenders often provide stability and comprehensive support for established businesses, while brokers like Funding Agent offer access to multiple options with faster comparisons. Specialist lenders may suit businesses with unique needs or higher risk profiles. Understanding the balance between loan amount, terms, and flexibility is essential when securing a 200 thousand pounds loan. Always verify current terms directly with the provider before proceeding.
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