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

Best Lenders to Secure a Unsecured Business Loan Over 2 Years

Discover the best lenders offering unsecured business loans with repayment terms over 2 years. Get expert tips to choose the right lender in the UK.
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 Unsecured 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 brokering unsecured business finance catering to UK SMEs. It is suited to companies seeking straightforward and rapid access to multiple lending options with flexible terms. Speed of application and ease of qualification checks are key features, 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

Sources: Funding Agent

2. Funding Circle

Funding Circle operates a peer-to-peer lending platform focusing on unsecured business loans. It is typically suitable for UK SMEs seeking mid to large-size funding with relatively quick approval timelines. The platform offers flexibility in repayment options, but eligibility standards may be more stringent.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 3.9%
  • Max APR: 19.9%
  • Loan Duration: 6-60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Short-term Loan
  • Industries: Retail, Healthcare, Construction

Pros

  • High funds availability
  • Quick funding process

Cons

  • Higher fees
  • Qualifying criteria can be strict

Sources: Source

3. NatWest

NatWest specialises in traditional unsecured business loans through retail bank services. It is typically suited for established UK SMEs requiring predictable terms and structured repayment plans. The bank offers a broader range of loan durations to support various business needs, with eligibility depending on credit and sector.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 6%
  • Max APR: 14.9%
  • Loan Duration: 12-84 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan
  • Industries: Retail, Manufacturing, Professional Services

Pros

  • No early repayment fees
  • Wide range of loan terms

Cons

  • Strict criteria for larger loans

Sources: Source

4. Barclays

Barclays provides unsecured business loans alongside a range of commercial financial products. It suits UK SMEs needing flexibility in loan size and duration, with options for commercial mortgages and investment banking services. The provider balances market presence with varied application complexity and credit requirements.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £250,000
  • Min APR: 6.4%
  • Max APR: 18.6%
  • Loan Duration: 6-120 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Commercial Mortgage
  • Industries: Technology, Retail, Healthcare

Pros

  • Variety of financial solutions
  • Strong market presence

Cons

  • Complex application process

Sources: Source

5. Lloyds Banking Group

Lloyds Banking Group delivers unsecured business loans and asset financing, designed for UK SMEs requiring diverse funding solutions. It is aligned with businesses prioritising flexible loan durations and layered financial products. The lender emphasises customer service alongside varying credit and collateral criteria.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 7%
  • Max APR: 16%
  • Loan Duration: 12-120 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Asset Finance
  • Industries: Retail, Healthcare, Real Estate

Pros

  • Flexible loan terms
  • Strong customer service

Cons

  • Higher interest rates for smaller loans

Sources: Source

6. HSBC

HSBC offers unsecured business loans as part of a broad portfolio including overdrafts and credit facilities. It is suited for SMEs needing integrated banking and clear repayment options. The lender emphasises extensive service coverage and operates with standard credit assessment practices.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £25,000
  • Min APR: 8.9%
  • Max APR: 15.9%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Overdrafts
  • Industries: Manufacturing, Retail, Finance

Pros

  • Global presence
  • Comprehensive online banking

Cons

  • Stringent credit checks

Sources: Source

7. Metro Bank

Metro Bank provides unsecured business loans alongside personal and commercial banking. The provider is geared towards UK SMEs valuing accessible customer service and straightforward lending. It emphasises relatively fast decisions and loan flexibility within moderate funding needs.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £25,000
  • Min APR: 8%
  • Max APR: 23%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan
  • Industries: Retail, Services, Technology

Pros

  • Extended hours
  • Excellent customer service

Cons

  • Limited branch network

Sources: Source

8. Santander

Santander offers unsecured business loans along with business overdrafts and accounts. It targets UK SMEs seeking flexible finance supported by established banking infrastructure. Speed and tailored lending terms are balanced with eligibility conditions and sector considerations.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £100,000
  • Min APR: 7.5%
  • Max APR: 15%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Business Overdraft
  • Industries: Construction, Retail, Telecommunications

Pros

  • Comprehensive online banking
  • Flexible terms

Cons

  • Higher APR for smaller loans

Sources: Source

9. TSB

TSB provides unsecured business loans and overdraft facilities suitable for UK SMEs seeking flexible financing. The bank offers varied loan term options and no early repayment penalties. It is aimed at clients requiring dependable service with attention to credit profile and business sector.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 8%
  • Max APR: 16%
  • Loan Duration: 12-60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Business Overdraft
  • Industries: Retail, Healthcare, Services

Pros

  • Wide range of loan terms
  • No early repayment fees

Cons

  • Higher APR for low credit score

Sources: Source

10. RBS (Royal Bank of Scotland)

RBS (Royal Bank of Scotland) offers unsecured business loans and a wide range of financial services to UK SMEs. It suits businesses looking for comprehensive support and strong market presence. Loan products provide flexible repayment options though eligibility and costs vary.

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: Unsecured Business Loan
  • Industries: Finance, Retail, Manufacturing

Pros

  • Comprehensive business support
  • Strong market presence

Cons

  • Higher interest for short terms

Sources: Source

How to choose

When securing an unsecured business loan over two years, start by matching loan amounts and APRs to your financial capacity. Evaluate lender eligibility criteria including credit score requirements and industry focus, as these affect approval chances. Consider the balance between speed of funding and flexibility in terms and repayments. Assess if the lender requires collateral, even if the loan is unsecured, and review any fees or early repayment penalties. Brokered platforms may offer quicker access while banks can provide broader service packages. Finally, ensure the loan aligns with your business cash flow needs and seasonal variations.

Conclusion

Choosing the right lender depends on your specific business needs and loan purpose. Banks typically offer structured unsecured loans with established terms suitable for a range of SMEs. Brokers such as Funding Agent provide access to multiple options with faster comparisons. Specialist lenders may be preferable for niche industries or unique collateral arrangements. For loans around 200 thousand pounds, carefully review the trade-offs between speed, cost, and loan flexibility before applying.

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FAQs

What is an unsecured business loan?
What are the benefits of choosing an unsecured business loan over 2 years?
Which lenders offer unsecured business loans with terms over 2 years in the UK?
What factors do lenders consider when approving an unsecured business loan?
Can new businesses get unsecured business loans over 2 years?
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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 is a peer-to-peer lending marketplace that allows investors to lend money directly to small and medium-sized businesses in the UK.£5,000–£500,000; 3.9%–19.9% APR; 6-60 months
3NatWestNatWest offers a variety of support and products to help companies with their business banking needs, including unsecured business loans.£1,000–£50,000; 6%–14.9% APR; 12-84 months
4BarclaysBarclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking, and wealth management with a strong presence in the UK.£1,000–£250,000; 6.4%–18.6% APR; 6-120 months
5Lloyds Banking GroupLloyds Banking Group offers a range of financial products and services, including business loans and finance options for SMEs in the UK.£1,000–£50,000; 7%–16% APR; 12-120 months
6HSBCHSBC UK offers a wide range of business banking accounts and services, from overdrafts and credit cards to business loans.£1,000–£25,000; 8.9%–15.9% APR; 12-60 months
7Metro BankMetro Bank is a retail bank operating in the UK that provides personal, business, and commercial banking services.£2,000–£25,000; 8%–23% APR; 12-60 months
8SantanderSantander UK offers a range of business bank accounts, loans, and finance options for small and medium enterprises across the country.£2,000–£100,000; 7.5%–15% APR; 12-60 months
9TSBTSB offers personal and business banking services throughout the UK, including unsecured business loans to support SMEs.£1,000–£100,000; 8%–16% APR; 12-60 months
10RBS (Royal Bank of Scotland)RBS provides banking and financial services including loans, mortgages, and insurance with a strong focus on business customers.£1,000–£100,000; 6%–20% APR; 12-60 months
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