April 14, 2026
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Best Lenders to Secure a 400k Short Term Business Loan

Discover the best lenders offering £400,000 short term business loans. Get quick approval with competitive rates tailored for UK businesses.
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Best Lenders to Secure a 400k Short Term Business Loan
Jesse Spence
Finance content writer / Market researcher

Jesse Spence is a Funding Research and Content Lead at Funding Agent with 4 years of experience in market research. He focuses on turning lender criteria and market insights into practical, plain-English resources that help business owners, not only, improve approval chances and choose the right type of finance but also find the right funding providers for their needs.

Best Lenders to Secure a 400k Short Term Business 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 2026-04-07.

1. Funding Agent

Funding Agent specialises in providing fast access to a range of business finance options through an easy-to-use comparison platform. It is suited to UK SMEs that value quick eligibility checks and straightforward application processes. The service focuses on transparency and flexibility, catering to businesses seeking unsecured and working capital loans without lengthy 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

Sources: Funding Agent

2. Nucleus Commercial Finance

Nucleus Commercial Finance focuses on providing flexible unsecured and secured business loans suitable for various business needs. It is aimed at small businesses and startups requiring adaptable funding options and potentially collateralised lending. The lender offers a range of loan terms with an emphasis on flexibility and a swift decision process, though specifics on timings are not always provided.

Loan Details

  • Min Amount: £3,000
  • Max Amount: £500,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Unknown ⌛

Services & Industries

  • Finance Types: Unsecured business loans, Secured business loans
  • Industries: Small businesses, Startups

Pros

  • Rapid decision
  • Flexible loan products

Cons

  • Higher APR for unsecured loans

Sources: Source

3. iwoca

iwoca offers unsecured business loans known for fast decisions and flexible repayment options without early repayment penalties. It appeals to SMEs needing quick access to funds, often for short-term working capital. The lender emphasises simplicity and speed, making it suitable for businesses prioritising rapid turnaround.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 1 day to 24 months ⌛

Services & Industries

  • Finance Types: Unsecured business loans
  • Industries: SMEs

Pros

  • Fast decision
  • No early repayment fees

Cons

  • Potentially high interest rates

Sources: Source

4. Barclays

Barclays provides bank-backed business loans with a focus on flexible borrowing for established and growing businesses. Their offerings suit franchise buyers and businesses seeking advice-backed lending solutions. Barclays loans typically involve formal eligibility criteria and may require security depending on the loan product.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Unknown ⌛

Services & Industries

  • Finance Types: Unsecured business loans
  • Industries: Various

Pros

  • Wide range of business products
  • Established bank

Cons

  • Strict eligibility criteria

Sources: Source

5. Lloyds Bank

Lloyds Bank offers a range of business loans including secured and unsecured options with long repayment terms. It is suitable for businesses seeking tailored solutions for expansion and capital investment. Lloyds loans generally offer flexible terms and may require collateral based on loan specifics.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Up to 25 years ⌛

Services & Industries

  • Finance Types: Unsecured business loans, Secured business loans
  • Industries: Various

Pros

  • Flexible term length
  • Multiple loan types

Cons

  • Interest rates can be high

Sources: Source

6. NatWest

NatWest offers a variety of lending products including fixed and variable rate business loans and overdrafts. It is designed for diverse business needs, suitable for medium to larger loan amounts. NatWest emphasises structured lending with bank-level processes and potentially formal security requirements.

Loan Details

  • Min Amount: £25,001
  • Max Amount: £10,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Up to 10 years ⌛

Services & Industries

  • Finance Types: Fixed rate loans, Variable rate loans
  • Industries: Various

Pros

  • Established bank with extensive services
  • Flexible borrowing limits

Cons

  • Strict application process

Sources: Source

7. Funding Circle

Funding Circle operates a peer-to-peer lending platform offering small business loans with rapid decision-making. It suits SMEs seeking mid-range loans with efficient online processing. Funding Circle loans are typically unsecured and focus on quick access to funds with clear repayment terms.

Loan Details

  • Min Amount: £0
  • Max Amount: £750,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Unknown ⌛

Services & Industries

  • Finance Types: Small business loans
  • Industries: SMEs

Pros

  • Quick decision process
  • No early repayment fees

Cons

  • Higher rates for riskier businesses

Sources: Source

8. Virgin StartUp

Virgin StartUp offers fixed-rate start-up loans alongside mentoring support to new entrepreneurs in the UK. This lender is focused on startups and early-stage businesses requiring smaller loan amounts with predictable costs. The programme combines financial support with guidance to assist new business owners.

Loan Details

  • Min Amount: £500
  • Max Amount: £25,000
  • Min APR: 6%
  • Max APR: 6%
  • Loan Duration: Unknown ⌛

Services & Industries

  • Finance Types: Start-up loans
  • Industries: Start-ups

Pros

  • Support for start-ups
  • Mentoring available

Cons

  • Limited loan amounts

Sources: Source

9. Fleximize

Fleximize focuses on providing flexible SME loans tailored to business needs with fast application and funding. It caters to businesses requiring rapid financing with adaptable repayment schedules. Fleximize balances speed and customisation for borrowers needing amounts from moderate to mid-level sums.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Up to 60 months ⌛

Services & Industries

  • Finance Types: SME loans, Unsecured loans
  • Industries: SMEs

Pros

  • Fast application process
  • Tailored financial solutions

Cons

  • May have high interest rates

Sources: Source

10. Metro Bank

Metro Bank provides personalised business and commercial loans with options for both short and long-term borrowing. It suits businesses looking for service-oriented lending with flexible term options. Metro Bank typically works with borrowers who prefer direct engagement and tailored loan structures.

Loan Details

  • Min Amount: £0
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 1 to 30 years ⌛

Services & Industries

  • Finance Types: Business loans, Commercial loans
  • Industries: Various

Pros

  • Personalized service
  • Flexible term options

Cons

  • Physical branch requirements

Sources: Source

How to choose

When selecting the best lender for a 400k short term business loan, focus on matching the loan size and APR to your budget and cash flow. Check each provider's eligibility criteria, as well as their speed of application and approval. Consider the balance between flexibility and repayment terms, especially short durations relevant to your franchise's seasonality. Review whether collateral or security is required and how repayment options suit your business model. Always factor in fees and the ease of application as part of your decision process.

Conclusion

Choosing the right lender depends on your specific business needs and loan purpose. Banks often suit borrowers who require structured lending with formal processes and possible security. Brokers or comparison platforms like Funding Agent provide broader access to multiple lenders and are suitable for those seeking quick, flexible options. Specialist providers focus on particular sectors or loan types and may offer tailored products for niche requirements. Consider these factors carefully when securing a 400 thousand pounds loan.

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FAQs

What is a short term business loan?
How can I qualify for a £400k short term business loan?
Which lenders offer the best rates for short term business loans in the UK?
How fast can I get approved for a £400k short term loan?
What are the risks of taking a short term business loan?
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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
2Nucleus Commercial FinanceNucleus Commercial Finance provides flexible business loan options with funding from £3k to £500k, offering both unsecured and secured loan products.£3,000–£500,000; 0%–0% APR; Unknown
3iwocaiwoca offers flexible funding from £1,000 to £1,000,000 with decisions made in 1 day and options for no early repayment fees.£1,000–£1,000,000; 0%–0% APR; 1 day to 24 months
4BarclaysBarclays offers business loans with a flexible borrowing range suitable for starting or expanding a business, backed by personalized financial advice.£1,000–£100,000; 0%–0% APR; Unknown
5Lloyds BankLloyds Bank provides business loans with flexible terms from £1,000, catering to various business needs including expansion and equipment investment.£1,000–£0; 0%–0% APR; Up to 25 years
6NatWestNatWest supports UK businesses with a range of lending options, included fixed and variable rate business loans and overdrafts.£25,001–£10,000,000; 0%–0% APR; Up to 10 years
7Funding CircleFunding Circle is a platform for small business loans offering funding up to £750,000 with decisions made quickly and efficiently.£0–£750,000; 0%–0% APR; Unknown
8Virgin StartUpVirgin StartUp provides loans and mentoring to entrepreneurs in the UK, offering start-up loans with a fixed interest rate across a range of funding needs.£500–£25,000; 6%–6% APR; Unknown
9FleximizeFleximize offers SME loans with flexible terms from £5,000 to £500,000, focusing on rapid funding solutions tailored to business needs.£5,000–£500,000; 0%–0% APR; Up to 60 months
10Metro BankMetro Bank provides business loans with a personalized approach, offering both short and long-term borrowing options tailored to business needs.£0–£0; 0%–0% APR; 1 to 30 years
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