Best Lenders to Secure a Business Loan Over 5 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 focuses on providing a fast, brokered comparison of unsecured business finance options to UK SMEs. It is suitable for franchise buyers and operators who need accessible loan products with flexible repayment terms. The platform emphasises quick eligibility checks and ease of application without requiring collateral.
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
Funding Circle operates as a peer-to-peer lending platform for UK small businesses seeking growth capital. It is suitable for franchise operators requiring clear loan options with fixed repayment schedules. The platform focuses on relatively quick processing and typically requires meeting defined eligibility criteria without collateral.
Loan Details
- Min Amount: £10,000
- Max Amount: £500,000
- Min APR: 4.5%
- Max APR: 15%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Peer-to-Peer Loans
- Industries: Technology, Construction, Hospitality
Pros
- Fast application process
- Favorable interest rates
Cons
- Strict eligibility requirements
Barclays is a major bank providing a wide range of business loan products, including term and asset finance. It is suitable for franchise buyers and businesses needing larger loan amounts with options for secured or unsecured financing. Barclays offers flexible repayment types and leverages its established presence for thorough application processing.
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 2.3%
- Max APR: 10.7%
- Loan Duration: 1–120 months ⌛
Services & Industries
- Finance Types: Term Loans, Asset Finance
- Industries: Real Estate, Wholesale, Healthcare
Pros
- Wide range of loan amounts
- Established reputation
Cons
- Could have high eligibility criteria
Lloyds Bank offers tailored loan solutions with options for fixed and variable rates, serving a broad range of business needs. It is suitable for franchise buyers requiring adaptable financing with varying collateral requirements. Lloyds benefits from its longstanding history and extensive service offerings for SMEs.
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 3.9%
- Max APR: 19.9%
- Loan Duration: 3–84 months ⌛
Services & Industries
- Finance Types: Fixed Rate Loans, Variable Loans
- Industries: Agriculture, Automotive, Food and Drink
Pros
- Custom loan options
- Strong network
NatWest provides various business loans including commercial mortgages targeted at businesses aiming for expansion. It is suited for franchise buyers seeking flexible repayment terms and access to tailored loan types. NatWest offers competitive rates alongside established industry experience.
Loan Details
- Min Amount: £5,000
- Max Amount: £350,000
- Min APR: 5%
- Max APR: 14.9%
- Loan Duration: 6–120 months ⌛
Services & Industries
- Finance Types: Small Business Loans, Commercial Mortgages
- Industries: Retail, Education, Energy
Pros
- Flexible repayment plans
- No hidden fees
Cons
- Higher interest rates for low credit scores
HSBC is a large international bank with a diverse range of business loan products including secured options. It suits franchise buyers and SMEs who need flexible loan types and may benefit from global reach and complex financing structures. Application processes can be more detailed due to the variety of products offered.
Loan Details
- Min Amount: £1,000
- Max Amount: £300,000
- Min APR: 3.4%
- Max APR: 14.9%
- Loan Duration: 12–84 months ⌛
Services & Industries
- Finance Types: Term Loans, Secured Loans
- Industries: Finance, Information Technology, Pharmaceuticals
Pros
- Global reach
- Variety of loan products
Cons
- Complex application process
7. Santander UK
Santander UK specialises in commercial loans, overdraft facilities, and revolving credit for businesses. It is ideal for franchise owners seeking competitive lending with reliable customer service support. Santander balances a range of loan options with moderate eligibility requirements.
Loan Details
- Min Amount: £2,000
- Max Amount: £500,000
- Min APR: 4%
- Max APR: 13.5%
- Loan Duration: 6-60 months ⌛
Services & Industries
- Finance Types: Commercial Loans, Overdraft, Revolving Credit
- Industries: Retail, Hospitality, Manufacturing
Pros
- Good customer service
- Wide range of financial services
Metro Bank focuses on small business lending with strong customer service and accessible loan management. It suits franchise operators who value personalised service and straightforward loan products. The bank offers flexible repayment options but has limited branch coverage.
Loan Details
- Min Amount: £2,000
- Max Amount: £350,000
- Min APR: 5.5%
- Max APR: 12%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Term Loans, Business Overdraft
- Industries: Retail, Logistics, Healthcare
Pros
- Excellent customer service
- Easy account management
Cons
- Limited branch availability
TSB Bank provides straightforward business loans with an emphasis on transparency and honest service. It is well suited for franchise businesses wanting clear loan terms and simple fee structures. Their lending focus is on consistent repayment schedules with limited collateral requirements.
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 6%
- Max APR: 18%
- Loan Duration: 3–60 months ⌛
Services & Industries
- Finance Types: Business Loans, Cash Flow Solutions
- Industries: Agriculture, Construction, Retail
Pros
- Transparent fees
- Straightforward process
Virgin Money UK provides business loans targeted at a variety of sectors including retail and technology. It is appropriate for franchise businesses focused on innovation and growth with flexible loan products. The lender offers term loans and credit card options supported by a recognised brand.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 4.9%
- Max APR: 15.5%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Term Loans, Business Credit Cards
- Industries: Retail, Technology, Media
Pros
- Innovative financial products
- Strong brand reputation
How to choose
Consider your business’s loan size and APR budget for terms over 5 years. Assess lender eligibility criteria and whether loan products require collateral or offer unsecured options. Prioritise lenders with repayment structures aligned to your cash flow and seasonal sales. Balance application speed against the level of flexibility you need in loan terms. Also, evaluate fees, early repayment options, and whether the lender’s specialisms fit your industry. Use this to find a practical match for your franchise financing needs.
Conclusion
When considering business loans around 200 thousand pounds, matching the provider to your needs is crucial. Banks often suit borrowers needing larger sums or secured financing, while brokers like Funding Agent provide broader comparisons for unsecured and flexible products. Specialist lenders may excel for niche industries or specific financing structures. Understanding your loan size, repayment preferences, and collateral capacity helps in selecting the right provider. Always verify current terms and costs before committing.
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