October 9, 2025
Lists

Best Working Capital Finance Lenders for Small Businesses in the UK

Discover the best working capital finance lenders for UK small businesses in 2025. Compare options, rates, and find the right lender to help your business grow.
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 offers working capital finance primarily for SMEs. Its solutions include unsecured loans and revolving credit, often suitable for franchise expansion or operational needs. The process is typically quick, with flexible repayment options, and caters to borrowers seeking transparent terms.

Loan Details

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

Services & Industries

  • Finance Types: Business Loans, Revolving Credit, Short-term Finance
  • Industries: Retail, Manufacturing, Healthcare

Pros

  • Competitive interest rates
  • Fast approval process
  • Flexible repayment terms

Cons

  • Not available for all industries

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

2. Funding Circle

Funding Circle is a leading UK platform that connects investors with small businesses seeking growth capital. Its loans are typically secured on business assets or cash flow and are suitable for expansion or refinancing. The platform emphasises quick access and transparent pricing.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £750,000
  • Min APR: 6.9%
  • Max APR: 15%
  • Loan Duration: 6–60 months⌛

Services & Industries

  • Finance Types: Term Loans, Revolving Credit Lines
  • Industries: Retail, Construction, Services

Pros

  • Transparent fees
  • No early repayment charges

Cons

  • Higher rates for higher risk borrowers

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

3. Iwoca

Iwoca provides flexible financing options for UK SMEs, often delivered through quick online approval processes. Its offerings include unsecured and secured loans, suitable for working capital or equipment purchase needs within flexible terms and repayment types.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 5%
  • Max APR: 49%
  • Loan Duration: 1–24 months⌛

Services & Industries

  • Finance Types: Business Loans, Credit Lines
  • Industries: Food and Beverage, Hospitality, Retail

Pros

  • Flexible repayment options
  • Quick funding

Cons

  • Higher APR for new customers

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

4. Fleximize

Fleximize provides flexible SME loans that can be secured or unsecured, often used for cash flow management, expansion, or equipment. It offers quick access and repayment flexibility for businesses seeking adaptable financing options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 8.9%
  • Max APR: 25%
  • Loan Duration: 3–60 months⌛

Services & Industries

  • Finance Types: SME Loans, Unsecured Loans
  • Industries: Technology, Retail, Healthcare

Pros

  • Loyalty discounts
  • No penalties for early repayments

Cons

  • Strict eligibility criteria

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

5. Swoop Funding

Swoop Funding offers a platform for accessing a range of financing options including loans, equity, and grants. Its services are designed for UK SMEs that need flexible, quick access to funding for growth, working capital, or projects.

Loan Details

  • Min Amount: £1,000
  • Max Amount: £5,000,000
  • Min APR: 5.9%
  • Max APR: 30%
  • Loan Duration: 6–60 months⌛

Services & Industries

  • Finance Types: Business Loans, Equity Financing, Grants
  • Industries: Agriculture, Transport, Professional Services

Pros

  • Diverse funding options
  • Comprehensive platform

Cons

  • Complex application process

Sources: https://swoopfunding.com

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6. Capify

Capify provides small business loans often approved quickly, offering flexible terms. Its financing options are suited for growth, cash flow, or urgent funding needs for UK SMEs.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £3,000,000
  • Min APR: 10%
  • Max APR: 69%
  • Loan Duration: 3–12 months⌛

Services & Industries

  • Finance Types: Merchant Cash Advance, Term Loans
  • Industries: Retail, Restaurants, Healthcare

Pros

  • Fast funding
  • Personalized offers

Cons

  • Very high APR

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

7. LendingCrowd

LendingCrowd is a peer-to-peer lending platform that connects investors directly with small businesses. It typically offers competitive rates often secured on assets or cash flow, suitable for SMEs seeking flexible funding options.

Loan Details

  • Min Amount: £5,000
  • Max Amount: £500,000
  • Min APR: 5%
  • Max APR: 20%
  • Loan Duration: 6–60 months⌛

Services & Industries

  • Finance Types: Business Loans, Peer-to-Peer Lending
  • Industries: Technology, Retail, Construction

Pros

  • Lower interest rates
  • Easy application process

Cons

  • Dependent on investor interest

Sources: https://www.lendingcrowd.com

8. Tide

Tide provides fast, flexible business loans often used by small UK businesses. Its solutions include unsecured and secured options, often delivered quickly via online approval, with cash flow or assets as collateral.

Loan Details

  • Min Amount: £2,000
  • Max Amount: £250,000
  • Min APR: 6.9%
  • Max APR: 34.9%
  • Loan Duration: 6–36 months⌛

Services & Industries

  • Finance Types: Business Loans, Overdrafts
  • Industries: Retail, Hospitality, Technology

Pros

  • Quick application process
  • Integrated business account

Cons

  • Limited to Tide account holders

Sources: https://www.tide.co

9. Close Brothers

Close Brothers is a well-established UK lender offering a range of finance solutions including asset-based lending. Its services are suitable for larger or secured borrowing needs such as growth funding or refinance. The process allows for customised terms based on risk and collateral.

Loan Details

  • Min Amount: £10,000
  • Max Amount: £5,000,000
  • Min APR: 5%
  • Max APR: 30%
  • Loan Duration: 6–60 months⌛

Services & Industries

  • Finance Types: Asset-based Lending, Business Loans
  • Industries: Manufacturing, Healthcare, Logistics

Pros

  • Customizable lending terms
  • Established financial institution

Cons

  • Complex approval process

Sources: https://www.closebrothers.com

How to choose

Match loan size and APR to your budget, check eligibility, and balance speed against flexibility. Consider how repayments fit your franchise cash flow and seasonality. Review lender criteria, fees, and early repayment terms before applying. For fast, simple funding, online lenders or peer-to-peer platforms are suitable. For larger or secured loans, traditional banks or specialist lenders may be better. Understanding your needs helps match the right provider and product.

Conclusion

Matching the right provider depends on your business needs. Bank lenders offer larger amounts and security options. Brokers can help find tailored solutions. Specialist lenders may focus on fast, unsecured or asset-backed funding. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Always confirm current costs and terms with the lender; pricing may change.

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