Best Lenders to Secure a Unsecured 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, streamlined process for UK SMEs to compare various business finance options. It is suitable for franchise buyers and small businesses seeking unsecured loans with clear eligibility guidance. The platform offers quick matching with flexible terms and does not require 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 specialises in peer-to-peer lending connecting UK businesses with investors. It is often suitable for established SMEs seeking unsecured or secured loans. The provider offers transparent terms with no early repayment fees, but may suit those with some business trading history.
Loan Details
- Min Amount: £10,000
- Max Amount: £500,000
- Min APR: 4.9%
- Max APR: 15%
- Loan Duration: 6–60 months ⌛
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans
- Industries: Healthcare, Construction, Tech
Pros
- Simple application process
- No early repayment fees
Cons
- Not suitable for startups
Iwoca provides quick, flexible small business lending with a simple application approach. It suits SMEs looking for short-term, unsecured credit lines or invoice financing. Repayment terms are generally shorter, supporting businesses needing rapid access without collateral.
Loan Details
- Min Amount: £1,000
- Max Amount: £200,000
- Min APR: 3.9%
- Max APR: 25%
- Loan Duration: 1–12 months ⌛
Services & Industries
- Finance Types: Line of Credit, Invoice Financing
- Industries: Retail, Hospitality
Pros
- Fast funding
- Flexible repayment
Tide targets small businesses with digital financial services including current accounts and unsecured loans. It is fitting for freelancers and SMEs requiring integrated banking with lending. Approval speeds are swift with flexible repayment options, though rates may vary by credit profile.
Loan Details
- Min Amount: £1,000
- Max Amount: £150,000
- Min APR: 5.5%
- Max APR: 35%
- Loan Duration: 3–36 months ⌛
Services & Industries
- Finance Types: Overdraft, Unsecured Loans
- Industries: Freelancers, SMEs
Pros
- Integrated business banking
- Fast approvals
Cons
- Higher rates for lower credit scores
Fleximize offers flexible funding solutions designed for SMEs across various sectors in the UK. It suits businesses looking for unsecured loans with adaptable terms and no hidden fees. The provider supports repayment flexibility and broader access through a straightforward application process.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 6.9%
- Max APR: 22.5%
- Loan Duration: 1–48 months ⌛
Services & Industries
- Finance Types: Revenue Advance, Unsecured Loans
- Industries: Real Estate, Professional Services
Pros
- Flexible terms
- No hidden fees
Cons
- Limited to established SMEs
Capify provides alternative business finance mainly through unsecured loans and merchant cash advances. Suitable for SMEs in sectors like retail and hospitality, Capify offers fixed payment plans without requiring collateral. The provider suits businesses needing short to medium-term funding solutions.
Loan Details
- Min Amount: £5,000
- Max Amount: £150,000
- Min APR: 9%
- Max APR: 29%
- Loan Duration: 4–12 months ⌛
Services & Industries
- Finance Types: Merchant Cash Advance, Unsecured Loans
- Industries: Retail, Hospitality
Pros
- No collateral needed
- Fixed daily payments
Ultimate Finance offers various financing products including invoice and asset finance, supporting businesses with secured and unsecured options. It is suitable for SMEs with needs for higher borrowing amounts or specialist lending. Terms may vary based on asset security and underwriting criteria.
Loan Details
- Min Amount: £5,000
- Max Amount: £1,000,000
- Min APR: 5%
- Max APR: 20%
- Loan Duration: 3–60 months ⌛
Services & Industries
- Finance Types: Invoice Finance, Asset-Based Lending
- Industries: Manufacturing, Wholesale
Pros
- High borrowing limits
- Long-term options
Cons
- May require asset security
Funding Xchange is a fintech platform that delivers live funding offers by connecting businesses with numerous lenders. It caters to SMEs seeking unsecured or variable rate loans with a range of options. Speed and breadth of lender access are key factors with variability depending on lender criteria.
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 5.9%
- Max APR: 18%
- Loan Duration: 6–36 months ⌛
Services & Industries
- Finance Types: Unsecured Loans, Variable Rate Loans
- Industries: Retail, Technology
Pros
- Quick comparisons
- Wide lender access
Esme Loans specialises in unsecured loans for UK businesses with a straightforward, fast application process. It fits SMEs needing quick access to financing without collateral. The service emphasises fixed rates with no early repayment fees.
Loan Details
- Min Amount: £10,000
- Max Amount: £250,000
- Min APR: 6.5%
- Max APR: 26%
- Loan Duration: 12–60 months ⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: Healthcare, E-Commerce
Pros
- No early repayment fees
- Straightforward process
MarketFinance offers invoice finance and unsecured business loans for small and medium enterprises. This provider suits businesses needing flexible funding for working capital and invoice-related borrowing. The service is focused on quick access and dedicated account support.
Loan Details
- Min Amount: £5,000
- Max Amount: £500,000
- Min APR: 7%
- Max APR: 25%
- Loan Duration: 3–24 months ⌛
Services & Industries
- Finance Types: Invoice Finance, Business Loans
- Industries: Retail, Manufacturing
Pros
- Dedicated account manager
- Quick access to funds
Cons
- Higher cost for short terms
How to choose
When seeking an unsecured business loan over five years, consider your loan amount needs and repayment capacity carefully. Evaluate APR ranges to ensure affordability over the loan term. Eligibility criteria will vary between lenders, so check these before applying. Compare speed of funding against flexibility to meet your cash flow and seasonal business cycle. Also, examine loan structures, such as fixed or variable rates and early repayment terms, to find a solution that fits your franchise growth plans.
Conclusion
Matching the provider type to your borrowing objectives is essential. Banks often offer competitive rates but require stronger credit profiles and security. Brokers can provide access to a range of specialist lenders suited for different business needs, while specialist providers may focus on particular industries or funding types. Funding Agent is a practical option for SMEs needing a clear view across lenders. For loans around 200 thousand pounds, consider your options carefully to balance costs, terms, and eligibility.
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