Best Startup Loan Lenders for UK Businesses
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 2025-10-09.
1. Funding Agent
Funding Agent Funding Agent provides unsecured business loans with loan amounts up to £500,000 and APR as low as 6.9%. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 6.9%
- Max APR: 8.9%
- Loan Duration: 0–36 months⌛
Services & Industries
- Finance Types: Unsecured loans, Bad credit loans
- Industries: Marketing, Consultancy, Accountancy
Pros
- Flexible loan terms
- Quick approval process
Cons
- Higher APR for lower credit scores
Sources: https://www.fundingagent.co.uk/post/top-10-unsecured-business-loans-for-startups-in-the-uk
2. LoanTube
LoanTube LoanTube is a digital credit marketplace that empowers UK consumers and small businesses to compare and select the right loan products. It offers access to varied lenders and loan options, facilitating quick comparisons. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £5,000
- Max Amount: £250,000
- Min APR: 3.5%
- Max APR: 19.9%
- Loan Duration: 6–60 months⌛
Services & Industries
- Finance Types: Digital marketplace loans
- Industries: Retail, Technology
Pros
- Wide range of lenders
- Competitive rates
Cons
- Not a direct lender
3. British Business Bank
British Business Bank The British Business Bank supports smaller businesses across the UK with financial expertise and loan programs including Start Up Loans with fixed interest rates. It can facilitate various types of funding such as secured or unsecured, with options suitable for early-stage and growing businesses. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 6%
- Loan Duration: 1–5 years⌛
Services & Industries
- Finance Types: Start Up loans, Debt finance
- Industries: Various SMEs
Pros
- Government-backed loans
- Fixed interest rate
Cons
- Limited maximum loan amount
Sources: https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/start-up-loan
4. NatWest
NatWest NatWest offers a range of business loans suitable for various needs, including secured and unsecured options. Their products are generally best for businesses seeking flexible, possibly collateralised funding solutions. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £250,000
- Min APR: 10%
- Max APR: 15%
- Loan Duration: 1–7 years⌛
Services & Industries
- Finance Types: Business lending
- Industries: Retail, Business services
Pros
- Quick loan approval
- Established bank
Cons
- Higher interest rates for low-credit borrowers
Sources: https://www.iwoca.co.uk/lenders/natwest-business-loan
5. Lloyds
Lloyds Lloyds Bank offers fixed interest loans for a range of business sizes, with options that can include collateralised and unsecured funding. Its flexible products aim at various sectors needing predictable repayment terms. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 4.4%
- Max APR: 11.2%
- Loan Duration: 1–10 years⌛
Services & Industries
- Finance Types: Secured loans, Unsecured loans
- Industries: Manufacturing, Real estate
Pros
- Flexible repayment terms
- Competitive fixed rates
Cons
- Strict eligibility criteria
Sources: https://lloydstsb.co.uk/business/business-loans.html
6. Virgin StartUp
Virgin StartUp Virgin StartUp specialises in supporting early-stage entrepreneurs with government-backed loans and mentoring, often focused on new businesses seeking initial capital. It offers flexible funding options combined with guidance. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 6%
- Loan Duration: 1–5 years⌛
Services & Industries
- Finance Types: Government-backed loans, Start-up mentoring
- Industries: Various start-ups
Pros
- Mentoring included
- Low fixed APR
Cons
- Limited to start-ups
Sources: https://www.virginstartup.org/
7. Funding Circle
Funding Circle Funding Circle is a key online lending platform for UK SMEs, specialising in quick access to capital through peer-to-peer lending and brokered connections, often catering to smaller growth finance needs. It offers options suited for different scales. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £10,000
- Max Amount: £750,000
- Min APR: 3.9%
- Max APR: 15.5%
- Loan Duration: 6–60 months⌛
Services & Industries
- Finance Types: Peer-to-peer lending
- Industries: Technology, Manufacturing
Pros
- Quick funding process
- Transparent rates
Cons
- Strict borrowing requirements
Sources: https://www.fundingcircle.co.uk/
8. Barclays
Barclays Barclays offers a comprehensive range of business loans, suitable for SMEs and larger firms. Its products include secured and unsecured options, often brokered via multiple channels for quick access. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £25,000,000
- Min APR: 5.7%
- Max APR: 16.9%
- Loan Duration: 1–25 years⌛
Services & Industries
- Finance Types: Fixed rate loans, Business mortgages
- Industries: Professional services, Healthcare
Pros
- Diverse financing options
- Strong customer support
Cons
- Lengthy application process
Sources: https://www.barclays.co.uk/business-banking/borrow/loans/
9. HSBC
HSBC HSBC offers a broad spectrum of financial products including flexible loans for SMEs, from secured and unsecured options to green and trade finance. Their capabilities include tailored repayment plans and global support. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £50,000,000
- Min APR: 7.5%
- Max APR: 14.9%
- Loan Duration: 1–15 years⌛
Services & Industries
- Finance Types: Green loans, Standard business loans
- Industries: Agriculture, Retail
Pros
- Global banking benefits
- Wide range of products
Cons
- Higher fees compared to peers
Sources: https://www.about.hsbc.co.uk/news-and-media/hsbc-uk-launches-500m-green-sme-fund
10. Swoop Funding
Swoop Funding Swoop Funding is a platform helping UK businesses access diverse financing options through comparison of multiple lenders and offers. It provides tools for quick comparison, suitable for businesses seeking flexible, non-secured, or collateralised products. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £5,000
- Max Amount: £1,000,000
- Min APR: 4%
- Max APR: 17.5%
- Loan Duration: 1–10 years⌛
Services & Industries
- Finance Types: Loan comparison, Equity finance
- Industries: Various SMEs
Pros
- Comprehensive loan comparison
- User-friendly interface
Cons
- Not a direct lender
Sources: https://swoopfunding.com/uk/business-loans/startup-loans/
How to choose
Matching the right lender depends on your business needs and loan purpose. For quick access with minimal paperwork, bank and online lenders offer fast options. Brokers can help find deals that suit more complex or larger funding needs. Evaluate interest rates, repayment terms, and flexibility before choosing a provider. Consider your cash flow and sector obligations. This approach helps ensure you select a loan that best fits your business's circumstances and growth plans.
Conclusion
Matching provider types to your financing needs is key. Bank lenders are often best for straightforward, secure loans. Brokers can offer access to a range of deals, including specialised options. Sector-focused or government-backed providers like the British Business Bank support specific business types. Always confirm costs and terms with your chosen provider. Funding Agent provides quick comparisons across many options. Careful evaluation ensures you get suitable, cost-effective funding for your UK business.
