Best Lenders to Secure a Business Loan Over 3 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.
Funding Agent offers brokered access to multiple business finance options focused on unsecured loans and working capital for UK SMEs. It suits franchise buyers and operators looking for transparent terms and a fast, simple application process. Flexibility is a key feature, with no collateral generally required and eligibility matched quickly.
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
HSBC is a global bank providing a broad range of business loan products including term loans and overdrafts. It is typically suited to established UK businesses needing sizeable loans, with clear repayment options and some flexibility on terms. HSBC's large scale means access to comprehensive financial services but can involve stricter eligibility criteria.
Loan Details
- Min Amount: £10,000
- Max Amount: £500,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: 36-84 months ⌛
Services & Industries
- Finance Types: Term Loans, Overdraft
- Industries: Healthcare, Manufacturing
Pros
- Global presence
- Comprehensive services
Barclays provides various business financing options including term loans and overdrafts tailored for SMEs. It is suitable for businesses looking for flexible loan terms with the option for secured or unsecured lending. Barclays leverages a strong UK presence and offers a range of repayment solutions to match borrower needs.
Loan Details
- Min Amount: £1,000
- Max Amount: £100,000
- Min APR: 6%
- Max APR: 20%
- Loan Duration: 12-60 months ⌛
Services & Industries
- Finance Types: Term Loans, Business Overdraft
- Industries: Retail, Technology
Pros
- Flexible loan terms
- Strong UK network
Cons
- Complex application process
Lloyds Bank specialises in tailored loan products for a variety of business sectors, offering both fixed and variable rate options. It fits SME borrowers who require customised loan solutions with relatively quick decisions and some repayment flexibility. Collateral requirements and LTV bands vary with the product and business profile.
Loan Details
- Min Amount: £1,000
- Max Amount: £50,000
- Min APR: 5.9%
- Max APR: 25.9%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Fixed Rate Loan, Variable Loan
- Industries: Agriculture, Construction
Pros
- Personalized advisory service
- Quick decision making
Cons
- Limited maximum loan amount
NatWest delivers a variety of business loans and invoice finance products primarily for UK SMEs in sectors such as tourism and hospitality. It is suited to borrowers seeking competitive pricing combined with a broad product range. Flexibility in repayment and support are key features, though eligibility rules apply.
Loan Details
- Min Amount: £2,000
- Max Amount: £350,000
- Min APR: 6%
- Max APR: 23%
- Loan Duration: 36-72 months ⌛
Services & Industries
- Finance Types: Business Loans, Invoice Finance
- Industries: Tourism, Hospitality
Pros
- Strong customer support
- Wide range of products
6. Santander UK
Santander UK offers flexible business lending solutions such as working capital and business loans for a variety of industries including retail and finance. This lender fits borrowers who prioritise competitive rates and multi-channel support options. Terms vary with credit assessment and product choice, typically requiring standard eligibility checks.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 5.99%
- Max APR: 20.99%
- Loan Duration: 36-60 months ⌛
Services & Industries
- Finance Types: Working Capital, Business Loans
- Industries: Retail, Finance
Pros
- Competitive rates
- Multi-channel support
7. Royal Bank of Scotland
Royal Bank of Scotland provides a broad selection of business finance products including term loans and asset finance mainly for SMEs. It is suitable for established businesses seeking growth financing with advisory support. RBS offers varying term lengths and loan structures that may include secured and unsecured options.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 7.5%
- Max APR: 24%
- Loan Duration: 12-72 months ⌛
Services & Industries
- Finance Types: Term Loans, Asset Finance
- Industries: Real Estate, Healthcare
Pros
- Wide range of loan products
- Supportive advisory services
Metro Bank delivers straightforward business loans and overdraft facilities backed by personalised service. It is ideal for SMEs wanting a customer-focused approach with flexible terms and extended support hours. Interest rates may vary, reflecting the bespoke nature of their product offerings.
Loan Details
- Min Amount: £2,000
- Max Amount: £250,000
- Min APR: 8.5%
- Max APR: 25.5%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Business Overdraft, Term Loans
- Industries: Retail, Technology
Pros
- Personalized service
- Extended opening hours for support
Cons
- Interest rate variability
Tesco Bank provides various business loans and financial products aimed at straightforward borrowing needs. This lender fits businesses seeking simple and accessible loan options with competitive terms. The focus is on ease of application, though branch availability may be limited.
Loan Details
- Min Amount: £3,000
- Max Amount: £100,000
- Min APR: 8.4%
- Max APR: 22.4%
- Loan Duration: 12-60 months ⌛
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans
- Industries: Retail, Food Industry
Pros
- High loan amounts available
- Easy application process
Cons
- Limited physical branches
Clydesdale Bank offers a diverse range of business finance solutions including term loans and asset financing suited for manufacturing and service industries. It is suited to SMEs looking for personalised service and regional lending expertise. Loan approval times may be longer, reflecting thorough assessment and tailored offers.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 6.9%
- Max APR: 21%
- Loan Duration: 12-72 months ⌛
Services & Industries
- Finance Types: Term Loans, Asset Financing
- Industries: Manufacturing, Services
Pros
- Personalized service
- Strong regional presence
Cons
- Slower loan approval times
How to choose
When selecting the best lender for a business loan over three years, consider your loan size and the APR to fit within your financial capacity. Evaluate eligibility requirements to ensure you qualify before applying. Balance the speed of funding against the flexibility of loan terms and repayment options. Assess lenders’ criteria, fees, and early repayment flexibility. Think about how loan repayments will align with your franchise's cash flow and seasonal fluctuations. Always review multiple offers to find the best fit for your business needs.
Conclusion
Choosing the right lender depends on your specific business needs and loan purpose. Banks typically suit established businesses looking for larger or secured loans. Brokers like Funding Agent provide quick access to multiple finance options with flexibility and speed. Specialist lenders may offer niche products tailored to particular industries or requirements. Always match the loan type, cost, and terms with your intended use and repayment ability when considering a 200 thousand pounds loan.