February 12, 2026
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Best Lenders to Secure a Unsecured Business Loan Over 3 Years

Best Lenders to Secure a Unsecured Business Loan Over 3 Years

Discover the best lenders offering unsecured business loans with flexible 3-year terms. Learn how to secure funding to grow your business today.
James Laden
Co-founder and CEO

8 years of experience working with major financial companies in the UK, and now focuses on making business funding simpler for SMEs through a faster, technology-led application journey.

Best Lenders to Secure a Unsecured 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.

1. Funding Agent

Funding Agent Funding Agent specialises in brokering unsecured business loans for UK SMEs. It is suited for franchise buyers and businesses seeking fast, straightforward access to multiple finance options. The platform emphasises speed, ease of application, and matching eligibility 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. Barclays Bank

Barclays Bank Barclays offers unsecured business loans primarily through traditional bank lending channels. It is suited to established SMEs and new businesses seeking predictable terms with secure bank support. The lender typically balances moderate speeds with flexible repayments and requires meeting standard eligibility criteria.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 3.9%
  • Max APR: 18.9%
  • Loan Duration: 12–60 months ⌛

Services & Industries

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

Pros

  • Low minimum loan amount
  • Flexible repayment terms

Cons

  • Stringent approval process

Sources: Source

3. Santander

Santander Santander specialises in unsecured business loans with a broad range of banking solutions aimed at SME growth. This lender typically suits SMEs looking for flexible unsecured funding, often paired with other banking products. Speed and repayment options vary depending on customer status.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £150,000
  • Min APR: 4.9%
  • Max APR: 21.9%
  • Loan Duration: 6–60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Business Overdraft
  • Industries: Technology, Healthcare

Pros

  • Tailored financial advice
  • Reputable bank

Cons

  • Limited to existing customers

Sources: Source

4. NatWest

NatWest NatWest provides unsecured loans focused on small and medium businesses with an emphasis on fast approval and repayment flexibility. It typically suits SMEs needing straightforward unsecured finance with accessible support. Terms may vary, but speed and flexibility are often priorities.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 5.9%
  • Max APR: 19.9%
  • Loan Duration: 12–60 months ⌛

Services & Industries

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

Pros

  • Quick approval time
  • Dedicated business specialists

Cons

  • Higher APR for smaller amounts

Sources: Source

5. HSBC

HSBC HSBC offers unsecured business loans as part of its global banking services, addressing the diverse needs of SMEs. It suits companies requiring support across multiple sectors with a preference for bank-grade security and broad industry access. Loan repayments and terms balance global reach with local flexibility.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 3.4%
  • Max APR: 20%
  • Loan Duration: 12–60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Trade Finance
  • Industries: Export, Import

Pros

  • Global presence
  • Wide industry support

Cons

  • Strict eligibility requirements

Sources: Source

6. Metro Bank

Metro Bank Metro Bank focuses on unsecured loans with personalised customer service tailored for SMEs. It suits businesses valuing customer care alongside flexible finance options. The lender combines moderate speeds with community-focused service and manageable loan sizes.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £25,000
  • Min APR: 5%
  • Max APR: 20%
  • Loan Duration: 12–60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan
  • Industries: Hospitality, Retail

Pros

  • Personalized service
  • Community-focused

Cons

  • Limited loan sizes

Sources: Source

7. Aldermore

Aldermore Aldermore offers unsecured loans focused on small businesses needing specialised finance without collateral. It is suitable for SMEs looking for flexible lending with asset finance options. The lender emphasises tailored solutions for industries such as agriculture and manufacturing.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £300,000
  • Min APR: 7%
  • Max APR: 25%
  • Loan Duration: 12–60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan, Asset Finance
  • Industries: Agriculture, Manufacturing

Pros

  • No collateral needed
  • Specialized SME service

Cons

  • Higher APR rates

Sources: Source

8. OakNorth Bank

OakNorth Bank OakNorth Bank provides unsecured business loans prioritising fast funding and decision-making. It typically suits SMEs requiring large loan amounts with quick access. Focus lies on speed and flexible terms, though eligibility may be selective.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £1,000,000
  • Min APR: 7.5%
  • Max APR: 18%
  • Loan Duration: 9–60 months ⌛

Services & Industries

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

Pros

  • Quick decision process
  • Higher loan limits

Cons

  • Relatively high starting APR

Sources: Source

9. Lloyds Bank

Lloyds Bank Lloyds Bank provides unsecured business loans with flexible repayment options for SMEs. It suits businesses seeking established banking services with moderate loan sizes and competitive rates. The lender balances customer service with predictable finance solutions.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 5.5%
  • Max APR: 22%
  • Loan Duration: 12–60 months ⌛

Services & Industries

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

Pros

  • Flexible terms
  • Strong customer service

Cons

  • Limited maximum loan size

Sources: Source

10. RBS (Royal Bank of Scotland)

RBS (Royal Bank of Scotland) RBS targets unsecured business loans to SMEs requiring financial support paired with advisory services. This lender suits companies valuing guided assistance and manageable repayments. Flexibility and structured support are notable features, with a focus on smaller loan amounts.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 4%
  • Max APR: 19%
  • Loan Duration: 12–60 months ⌛

Services & Industries

  • Finance Types: Unsecured Business Loan
  • Industries: Consulting, Hospitality

Pros

  • Guided support
  • Flexible repayment

Cons

  • Restrictive for larger loans

Sources: Source

How to choose

When selecting an unsecured business loan over three years, consider your loan amount needs and APR preferences carefully. Check each lender’s eligibility criteria, including business size and industry fit. Balance the importance of application speed against repayment flexibility and collateral requirements. Review lender fees and the possibility of early repayment without penalties. Ensure repayment schedules align with your franchise cash flow and seasonal variations.

Conclusion

Choosing the right lender for a 200 thousand pounds loan depends on your business needs and circumstances. Banks typically offer reliability and structured support, making them suitable for established SMEs. Brokers such as Funding Agent provide faster access to multiple options, useful for those needing quick comparisons. Specialist lenders may offer tailored solutions for niche sectors or specific finance types. Always verify terms and conditions before committing to any loan.

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FAQs

What is an unsecured business loan?
Who are the best lenders for unsecured business loans over 3 years?
What are the typical repayment terms for a 3-year unsecured loan?
Can a new business qualify for an unsecured loan over 3 years?
How can I improve my chances of getting an unsecured loan?
Are there any risks associated with unsecured business loans?

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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
2Barclays BankBarclays offers a wide range of business financial solutions, including unsecured loans aimed at SMEs and new businesses.£1,000–£100,000; 3.9%–18.9% APR; 12–60 months
3SantanderSantander provides comprehensive banking solutions, including unsecured business loans designed to help SMEs grow.£2,000–£150,000; 4.9%–21.9% APR; 6–60 months
4NatWestNatWest offers a variety of unsecured business loans with fast approval and flexible options for small businesses.£1,000–£50,000; 5.9%–19.9% APR; 12–60 months
5HSBCHSBC is a global bank offering unsecured business loans to support the financial needs of SMEs across various sectors.£1,000–£100,000; 3.4%–20% APR; 12–60 months
6Metro BankMetro Bank provides flexible unsecured business loans with personalized customer care to meet the needs of SMEs.£2,000–£25,000; 5%–20% APR; 12–60 months
7AldermoreAldermore offers specialized unsecured business loans aimed at helping small businesses secure financing without collateral.£5,000–£300,000; 7%–25% APR; 12–60 months
8OakNorth BankOakNorth Bank provides unsecured business loans with a focus on faster funding and decision-making processes.£5,000–£1,000,000; 7.5%–18% APR; 9–60 months
9Lloyds BankLloyds Bank offers unsecured business loans tailored to SMEs with flexible repayment terms and competitive rates.£1,000–£50,000; 5.5%–22% APR; 12–60 months
10RBS (Royal Bank of Scotland)RBS provides unsecured business loans designed to offer financial support to SMEs with guidance from dedicated advisors.£1,000–£50,000; 4%–19% APR; 12–60 months
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