February 12, 2026
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Best Lenders to Secure a Business Loan Over 2 Years

Best Lenders to Secure a Business Loan Over 2 Years

Discover the best lenders to secure a business loan over 2 years. Compare terms, interest rates, and find the right financing solution for your business needs.
Jesse Spence
Finance content writer / Market researcher

4 years of experience in market research. He focuses on turning lender criteria and market insights into practical, plain-English resources that help business ownersb improve approval chances and choose the right type of finance

Best Lenders to Secure a Business Loan Over 2 Years

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 comparison services for UK SMEs seeking unsecured business loans and working capital. It is suitable for franchise buyers and operators wanting a quick and clear overview of finance options. The platform offers speed through a simple application process and aims to match eligibility without 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. Funding Circle

Funding Circle specialises in unsecured business loans designed for small businesses across various sectors. It suits franchise buyers looking for competitive APRs and transparent terms. Funding Circle offers relatively fast funding with no early repayment fees, although eligibility standards are strict.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £500,000
  • Min APR: 7.9%
  • Max APR: 25.9%
  • Loan Duration: 6-60 months

Services & Industries

  • Finance Types: business loans, working capital loans
  • Industries: Healthcare, Hospitality, Construction

Pros

  • Fast funding
  • No early repayment fees

Cons

  • Strict eligibility criteria

Sources: Source

3. Iwoca

Iwoca provides flexible and quick business loans ideal for SMEs requiring working capital or invoice financing. It is suitable for those seeking straightforward access to funds with flexible terms. Iwoca considers credit scores in APR calculations and offers no setup fees.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 3.9%
  • Max APR: 34.9%
  • Loan Duration: 12-36 months

Services & Industries

  • Finance Types: business loans, invoice financing
  • Industries: Retail, Services, Technology

Pros

  • Quick access to funds
  • No setup fees

Cons

  • Higher APR for lower credit scores

Sources: Source

4. Barclays

Barclays offers traditional bank lending with a range of business loans and overdraft facilities. It is suitable for franchise buyers seeking long-term finance with personalised service. Barclays provides flexible terms and may require security or collateral depending on the product.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 5.5%
  • Max APR: 20.5%
  • Loan Duration: 1-10 years

Services & Industries

  • Finance Types: business loans, overdrafts
  • Industries: Agriculture, Education, Manufacturing

Pros

  • Established bank
  • Wide range of services

Cons

  • Longer processing times

Sources: Source

5. HSBC

HSBC provides a broad range of business loans and commercial mortgages designed for diverse business needs. It suits franchise operators looking for tailored options and flexibility in repayment. HSBC’s lending may involve security requirements and varied loan terms to match business profiles.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £5,000,000
  • Min APR: 4.49%
  • Max APR: 21.9%
  • Loan Duration: 6 months to 5 years

Services & Industries

  • Finance Types: business loans, commercial mortgages
  • Industries: Technology, Transport, Healthcare

Pros

  • Global reach
  • Tailored loan options

Cons

  • Complex application process

Sources: Source

6. Lloyds Bank

Lloyds Bank offers various business finance solutions including loans and asset finance. It is suitable for franchise buyers seeking competitive rates and expert advice. Lloyds provides lending with flexible criteria but may have limited online service availability.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 3.9%
  • Max APR: 22.9%
  • Loan Duration: 1-5 years

Services & Industries

  • Finance Types: business loans, asset finance
  • Industries: Retail, Manufacturing, Agriculture

Pros

  • Flexible lending criteria
  • Specialist advice

Cons

  • Limited online services

Sources: Source

7. NatWest

NatWest delivers a wide range of business financing options suitable for all business sizes. It is appropriate for franchise owners seeking flexible financing and real estate finance solutions. NatWest combines competitive fixed rates with broad industry coverage but requires thorough eligibility checks.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £5,000,000
  • Min APR: 6.3%
  • Max APR: 19.9%
  • Loan Duration: 6-120 months

Services & Industries

  • Finance Types: business loans, real estate finance
  • Industries: Construction, Healthcare, Technology

Pros

  • Wide industry coverage
  • Competitive fixed rates

Cons

  • High eligibility standards

Sources: Source

8. Metro Bank

Metro Bank provides transparent SME lending with a focus on customer service and straightforward product offerings. It suits franchise buyers seeking invoice finance and flexible repayment options. Metro Bank emphasises clarity and customer support within its loan products.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 8.9%
  • Max APR: 24.9%
  • Loan Duration: 12-72 months

Services & Industries

  • Finance Types: business loans, invoice finance
  • Industries: Retail, Hospitality, Real estate

Pros

  • Flexible repayments
  • Excellent customer service

Cons

  • Higher APRs for small loans

Sources: Source

9. Santander

Santander offers a broad range of business loans targeting small and medium enterprises with options like lines of credit. It is suited for franchise buyers in sectors needing flexible finance solutions. Santander emphasises competitive rates and dedicated support through relationship managers.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £2,500,000
  • Min APR: 3.45%
  • Max APR: 22.5%
  • Loan Duration: 6-84 months

Services & Industries

  • Finance Types: business loans, lines of credit
  • Industries: Transport, Energy, Retail

Pros

  • Competitive rates
  • Dedicated relationship managers

Cons

  • Online services can be slow

Sources: Source

10. Virgin Money

Virgin Money provides a variety of lending solutions focused on supporting business growth across sectors like technology and retail. It suits franchise owners who value a simple application process and diverse finance options. Virgin Money emphasises customer-focused services and equipment finance availability.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 6.49%
  • Max APR: 21.5%
  • Loan Duration: 12-60 months

Services & Industries

  • Finance Types: business loans, equipment finance
  • Industries: Technology, Retail, Healthcare

Pros

  • Simple application process
  • Variety of finance options

Cons

  • Limited branch access

Sources: Source

How to choose

When selecting the best lender for a business loan over 2 years, consider your loan amount and APR to ensure affordability. Check eligibility criteria carefully as they vary widely between providers. Evaluate the speed of approval against flexibility and security requirements. Think about how repayments will fit with your franchise’s cash flow and seasonal cycles. Also, review any fees and terms for early repayment. It is important to match your specific business needs to the lender’s strengths for the best outcome.

Conclusion

Choosing the right lender depends on your business needs and loan purpose. Banks often suit those who prefer established relationships and flexible loans backed by collateral. Brokers and specialists can offer faster access or niche products tailored to specific sectors. Funding Agent remains a useful tool for comparing options when seeking a business loan. For loans around 200 thousand pounds and above, careful comparison of terms and services is key to finding the right fit.

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FAQs

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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 provides easy access to finance for small businesses, offering a range of business loans with competitive APR rates.£10,000–£500,000; 7.9%–25.9% APR; 6-60 months
3IwocaIwoca is a flexible lender providing quick, straightforward business loans to SMEs across the UK.£1,000–£200,000; 3.9%–34.9% APR; 12-36 months
4BarclaysBarclays offers a range of lending options for businesses, with flexible terms and a personalized approach.£1,000–£1,000,000; 5.5%–20.5% APR; 1-10 years
5HSBCHSBC offers competitive business loans with an emphasis on flexibility to meet the diverse needs of small businesses.£1,000–£5,000,000; 4.49%–21.9% APR; 6 months to 5 years
6Lloyds BankLloyds Bank provides a variety of financial products for businesses, including competitively priced loans with flexible options.£5,000–£500,000; 3.9%–22.9% APR; 1-5 years
7NatWestNatWest delivers a range of business financing solutions designed to support businesses of all sizes across the UK.£1,000–£5,000,000; 6.3%–19.9% APR; 6-120 months
8Metro BankMetro Bank offers straightforward and transparent lending products for SMEs, with a focus on customer service.£5,000–£250,000; 8.9%–24.9% APR; 12-72 months
9SantanderSantander provides a broad range of business loans that cater to the needs of small and medium enterprises.£2,000–£2,500,000; 3.45%–22.5% APR; 6-84 months
10Virgin MoneyVirgin Money offers a range of lending solutions to support business growth, with an emphasis on customer-focused services.£5,000–£500,000; 6.49%–21.5% APR; 12-60 months