October 9, 2025
Lists

Best Term Loan Lenders for Small Businesses in the UK

Discover the best term loan lenders for small businesses in the UK for 2025. Compare rates, terms, and eligibility to find the right loan for your business growth.
Jesse Spence
Finance content writer / Market researcher

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 is a comprehensive financial services company offering innovative lending solutions tailored for small businesses across the UK. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 6%
  • Max APR: 18%
  • Loan Duration: 3–60 months⌛

Services & Industries

  • Finance Types: Term Loans, Invoice Financing
  • Industries: Retail, Healthcare, Manufacturing

Pros

  • Tailored lending solutions
  • Fast approval times

Cons

  • Eligibility criteria can be strict

Sources: https://www.fundingagent.co.uk

2. Funding Circle

Funding Circle Funding Circle mostly specialises in peer-to-peer lending for small businesses seeking flexible access to working capital. It offers quick funding and competitive rates, often secured on business assets. Suitable for those looking to purchase or refinance assets or finance growth, with access brokered through the platform.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £750,000
  • Min APR: 6.9%
  • Max APR: 15%
  • Loan Duration: 6–72 months⌛

Services & Industries

  • Finance Types: Term Loans, Unsecured Loans
  • Industries: Small Business, Retail

Pros

  • Fast approval process
  • Competitive interest rates

Cons

  • Application fees apply

Sources: https://www.fundingcircle.co.uk

3. Nucleus Commercial Finance

Nucleus Commercial Finance Nucleus Commercial Finance provides a range of business funding options including unsecured loans and asset-based lending. Its products are suitable for companies needing flexible repayment schedules and different security types. Ideal for growth, purchase, or working capital solutions, often brokered for ease of access.

Loan Details

  • Min Amount: £25,000
  • Max Amount: £2,000,000
  • Min APR: 5%
  • Max APR: 19.9%
  • Loan Duration: 6–72 months⌛

Services & Industries

  • Finance Types: Unsecured Loans, Asset Based Lending
  • Industries: Technology, Professional Services

Pros

  • Flexible finance options
  • High loan amounts

Cons

  • High APR for some businesses

Sources: https://www.fundingagent.co.uk/post/funding-circle-vs-nucleus-commercial-finance

4. Iwoca

Iwoca Iwoca offers flexible credit solutions mainly for small businesses requiring short-term lending. Its products include lines of credit and loans with transparent interest rates, often secured on receivables or assets, suitable for working capital or quick cash flow needs, often brokered through the platform.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £200,000
  • Min APR: 6%
  • Max APR: 49%
  • Loan Duration: 1–12 months⌛

Services & Industries

  • Finance Types: Credit Lines, Short-term Loans
  • Industries: E-commerce, Service

Pros

  • No early repayment fees
  • Fast funding

Cons

  • Short loan terms

Sources: https://www.iwoca.co.uk/small-business-loans

5. Lloyds Bank

Lloyds Bank Lloyds Bank provides a variety of fixed rate business loans suitable for small firms needing straightforward borrowing. They cater to businesses seeking predictable repayments and flexible terms, often secured on assets. Borrowers may choose from different durations and security types depending on their cash flow and growth plans.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 11.2%
  • Max APR: 15%
  • Loan Duration: 1–25 years⌛

Services & Industries

  • Finance Types: Fixed Rate Loans
  • Industries: Healthcare, Construction

Pros

  • Wide loan range
  • Local branches available

Cons

  • Higher APR compared to some peers

Sources: https://lloydstsb.co.uk/business/business-loans.html

6. NatWest

NatWest NatWest offers a broad range of financial products including business loans that are suitable for different needs and sizes. It provides flexible options for working capital, expansion, or asset purchase. Their lending terms often include collateral and variable repayment options, making them adaptable to different business situations.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 10%
  • Max APR: 15%
  • Loan Duration: 12–84 months⌛

Services & Industries

  • Finance Types: Variable Rate Loans, Fixed Rate Loans
  • Industries: Hospitality, Retail, Real Estate

Pros

  • Flexible repayment options
  • Reputed bank

Cons

  • Strict eligibility criteria

Sources: https://www.natwest.com/business/loans-and-finance.html

7. RBS

RBS RBS offers a range of secured and unsecured business loans with flexible repayment terms. Its products cover different security levels and sectors, suitable for businesses looking for straightforward borrowing with options for growth or refinancing. Access is often brokered, with lending criteria based on business stability and security.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £100,000
  • Min APR: 6.6%
  • Max APR: 15%
  • Loan Duration: 1–25 years⌛

Services & Industries

  • Finance Types: Secured Loans, Unsecured Loans
  • Industries: Agriculture, Manufacturing

Pros

  • Tailored loan solutions
  • Strong financial backing

Cons

  • Complicated application process

Sources: https://www.rbs.co.uk/business/loans-and-finance.html

8. Barclays

Barclays Barclays provides a variety of business finance options, including unsecured loans suitable for quick funding needs and growth. Their offerings support businesses with flexible repayment terms and security options. Suitable for small firms seeking reliable and fast access to capital, often brokered through the bank.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £250,000
  • Min APR: 11.2%
  • Max APR: 14.9%
  • Loan Duration: 12–120 months⌛

Services & Industries

  • Finance Types: Unsecured Loans, Business Mortgages
  • Industries: Manufacturing, Healthcare

Pros

  • Business-friendly terms
  • Reputable lender

Cons

  • High minimum loan amount

Sources: https://www.barclays.co.uk/business-banking/borrow/loans/

9. Fleximize

Fleximize Fleximize is a digital lender specialising in flexible business loans, often unsecured. It offers solutions suitable for growth, purchase, or working capital needs, with broker access for larger facilities. Its application process is quick and tailored to various business types.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 8.9%
  • Max APR: 25%
  • Loan Duration: 1–60 months⌛

Services & Industries

  • Finance Types: Unsecured Loans, Merchant Cash Advances
  • Industries: Consultancy, Marketing

Pros

  • Customizable loan solutions
  • Loyalty discounts

Cons

  • Higher APR rates

Sources: https://www.fleximize.co.uk

10. Tide

Tide Tide offers a variety of financial services including low-rate loans and flexible funding options through a digital platform. Its products are suited for small businesses seeking quick, manageable finance solutions. The service often brokered online can support growth, cash flow smoothing, or asset purchase.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £25,000
  • Min APR: 6%
  • Max APR: 26.6%
  • Loan Duration: 6–36 months⌛

Services & Industries

  • Finance Types: Unsecured Loans, Credit Lines
  • Industries: Startups, Freelancers

Pros

  • Easy online application
  • Flexible use

Cons

  • Low loan limits

Sources: https://www.businessexpert.co.uk/business-loans/business-loan-guide/tide/

How to choose

Matching the right lender depends on your specific needs. Bank lenders offer straightforward, quick access for small amounts. Brokers can connect you with multiple options and flexible terms. Specialist providers often focus on sectors or secured products for larger or more complex needs. Consider your loan purpose, repayment capacity, and whether security is required. Comparing fees and conditions helps find the best fit for your small business.

Conclusion

Matching a lender to your needs involves understanding how different providers operate. Banks are suitable for standard, quick loans with security options. Brokered services can access wider networks and customised solutions. Specialist providers may focus on specific sectors or loan types for larger sums. Always check current costs and terms with the lender; pricing may change. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Other providers suit larger amounts, asset-backed needs, or sector specialisms.

Table of Contents
Example H2
Example H3

Let’s launch your project?

arrow button

FAQ’S

What is a term loan for small businesses?
How do I qualify for a small business term loan?
What are the typical interest rates for term loans in 2025?
Can I use a term loan for any business purpose?
How long does it take to get approved for a term loan?
What are the best lenders for small business term loans in the UK?

Get Funding For
Your Business

Generate offers
Cta image