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British Business Bank Alternatives
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British Business Bank offers various funding schemes, but many businesses find that their needs are better served by a specialist lender with faster decisions or different product types.
Alternatives like Funding Circle provide fixed-rate business loans with online speed, while Aldermore unlocks cash from unpaid invoices through invoice finance. Allica Bank supports asset-backed lending for equipment purchases, and iwoca offers flexible Flexi-Loans with daily interest.
Quick Compare
| # | Company | What it is | Funding range | Speed | Rates |
|---|---|---|---|---|---|
| 1 | Allica Bank | Allica Bank provides asset finance to established UK businesses. | from £25000 to £1000000 | This varies by case | Pricing depends on the asset, your business profile, and the deal structure. Rates and costs are agreed after review. |
| 2 | Aldermore | Aldermore provides invoice finance to help UK businesses unlock cash tied up in unpaid invoices. | from £1000 to £2000000 | This varies by case | Pricing depends on your invoice book and the structure of your facility. Personal guarantees can be taken at the lender’s discretion. |
| 3 | Funding Circle | Funding Circle provides fixed-rate business loans to UK limited companies and LLPs. | from £10000 to £750000 | Decision within 1 hour; funds typically within 48 hours | Rates start from 6.9% per year. Loans are fixed rate, so you know your monthly repayment. |
| 4 | iwoca | iwoca provides Flexi-Loan credit facilities for UK small businesses. | from £1000 to £1000000 | This varies by case | Interest rates start from 1.5% per 30 days. You only pay interest on the balance you use and repayments run on agreed terms. |
| 5 | iwoca | iwoca provides Flexi-Loan credit facilities for UK small businesses. | from £1000 to £1000000 | This varies by case | Interest rates vary from 2% to 6% per month. Interest accrues daily, so cost tracks how long you hold the funds. |
Ready to compare these British Business Bank alternatives?
Check eligibility first, or apply now. Both are free and without obligation.
1. Allica Bank
Allica Bank provides asset finance to established UK businesses. It works well for buyers who need funding tied to the equipment or assets they are purchasing. As an alternative, it can suit businesses that want bank-led lending rather than online credit facilities.
Loan and pricing details
- Min amount: £25,000
- Max amount: £1,000,000
- APR min: This varies by case
- APR max: This varies by case
- Loan durations: Up to 7 years
Funding range note: Allica’s asset finance fits borrowing up to £1,000,000 for equipment and asset-backed needs.
Speed: This varies by case
Interest rate notes: Pricing depends on the asset, your business profile, and the deal structure. Rates and costs are agreed after review.
Eligibility
- Min trading months: 12
- Min monthly turnover: This varies by case
- Credit flexibility: This varies by case
Personal guarantee: This varies by case
Homeowner advantage: This varies by case
Services and sectors
- Products: Asset finance
- Industries: This varies by case
Best for
- Established businesses buying equipment or assets and wanting asset finance up to £1,000,000.
Pros
- Allica supports hard, medium, and soft assets up to £1,000,000.
- Asset finance can fund equipment up to a maximum term of 7 years.
Cons
- Asset finance suits asset-backed needs rather than general working capital.
- Availability and pricing depend on your application and deal fit.
2. Aldermore
Aldermore provides invoice finance to help UK businesses unlock cash tied up in unpaid invoices. It serves established B2B operators that want working capital based on their receivables. As an alternative, it can fit businesses that prefer asset-based cash flow lending over unsecured loans.
Loan and pricing details
- Min amount: £1,000
- Max amount: £2,000,000
- APR min: This varies by case
- APR max: This varies by case
- Loan durations: 3 months to 3 years
Funding range note: A typical sweet spot is invoice finance facilities of up to around £2,000,000 for growing SMEs.
Speed: This varies by case
Interest rate notes: Pricing depends on your invoice book and the structure of your facility. Personal guarantees can be taken at the lender’s discretion.
Eligibility
- Min trading months: This varies by case
- Min monthly turnover: £750,000
- Credit flexibility: This varies by case
Personal guarantee: Case by case
Homeowner advantage: This varies by case
Services and sectors
- Products: Invoice finance, invoice discounting, invoice factoring
- Industries: This varies by case
Best for
- B2B businesses with invoice cash flow needs and annual turnover above £750,000.
Pros
- Aldermore pays up to 90% of the value of invoices up front.
- Terms can run from 3 months to 3 years under its invoice finance Growth Guarantee Scheme offering.
Cons
- Invoice finance works against sales invoices, so it is not a direct fit for all funding needs.
- It generally expects higher turnover, with a minimum rule of £750,000 for invoice finance applicants.
3. Funding Circle
Funding Circle provides fixed-rate business loans to UK limited companies and LLPs. It serves SMEs that want a lump sum for equipment, growth, or cash flow. It is a relevant alternative if you want clear loan terms and online application speed.
Loan and pricing details
- Min amount: £10,000
- Max amount: £750,000
- APR min: 6.9%
- APR max: This varies by case
- Loan durations: 6 months to 6 years
Funding range note: Funding Circle suits borrowing from £10,000 to £750,000 for planned upgrades and working capital.
Speed: Decision within 1 hour; funds typically within 48 hours
Interest rate notes: Rates start from 6.9% per year. Loans are fixed rate, so you know your monthly repayment.
Eligibility
- Min trading months: 12
- Min monthly turnover: This varies by case
- Credit flexibility: This varies by case
Personal guarantee: Required
Homeowner advantage: This varies by case
Services and sectors
- Products: Business loans
- Industries: This varies by case
Best for
- UK SMEs that have traded for at least 1 year and want fixed-rate monthly payments.
Pros
- Funding Circle offers fixed-rate loans with set monthly repayments.
- You can apply online and get a decision in as little as 1 hour.
Cons
- You need to have been trading for 1 year or more.
- A personal guarantee is required if you are approved for a loan.
4. iwoca
iwoca provides Flexi-Loan credit facilities for UK small businesses. It serves limited companies and partnerships that need short-term working capital. As an alternative, it can suit businesses that want quick access to funds and flexible repayment timing.
Loan and pricing details
- Min amount: £1,000
- Max amount: £1,000,000
- APR min: 1.5%
- APR max: Fixed rate
- Loan durations: 1 day to 5 years
Funding range note: iwoca’s Flexi-Loan often fits requests from £1,000 up to £1,000,000 for short-term cash needs.
Speed: This varies by case
Interest rate notes: Interest rates start from 1.5% per 30 days. You only pay interest on the balance you use and repayments run on agreed terms.
Eligibility
- Min trading months: This varies by case
- Min monthly turnover: This varies by case
- Credit flexibility: iwoca places emphasis on current trading strength and overlooks historic issues where possible.
Personal guarantee: Required
Homeowner advantage: This varies by case
Services and sectors
- Products: Flexi-Loan, revolving credit facility
- Industries: All industries
Best for
- UK limited companies and partnerships needing flexible access to working capital from £1,000.
Pros
- Flexi-Loan funds can be flexible, with terms up to 5 years.
- You do not charge early repayment fees, so you can repay ahead when cash frees up.
Cons
- A personal guarantee is required for the Flexi-Loan.
- Interest rates depend on your business profile, so pricing is not fixed before review.
5. iwoca
iwoca provides Flexi-Loan credit facilities for UK small businesses. It serves limited companies and partnerships that need short-term working capital. As an alternative, it covers businesses that need flexible access when invoice finance or large-lending products do not fit.
Loan and pricing details
- Min amount: £1,000
- Max amount: £1,000,000
- APR min: 2%
- APR max: 6%
- Loan durations: 1 day to 2 years
Funding range note: A common fit is short-term borrowing from £1,000 to £1,000,000 to bridge cash flow and fund projects.
Speed: This varies by case
Interest rate notes: Interest rates vary from 2% to 6% per month. Interest accrues daily, so cost tracks how long you hold the funds.
Eligibility
- Min trading months: This varies by case
- Min monthly turnover: This varies by case
- Credit flexibility: iwoca focuses on the current strength of your business and overlooks historic issues where possible.
Personal guarantee: Required
Homeowner advantage: This varies by case
Services and sectors
- Products: Flexi-Loan, revenue-based options
- Industries: All industries
Best for
- Small businesses that want working-capital style lending with flexible drawdown and early repayment.
Pros
- You can repay early for free, which helps reduce interest when cash arrives sooner.
- Interest accrues daily and only charges you for the days you use the funds.
Cons
- The maximum loan term depends on your Flexi-Loan setup, so longer lending needs may not match.
- Personal guarantees apply to Flexi-Loans.
Choosing the Right Alternative to British Business Bank
The five lenders profiled cover asset finance, invoice finance, fixed-term loans, and flexible credit facilities. Each can meet needs that might not fit a British Business Bank programme, whether you need money tied to equipment, invoices, or a revolving credit line.
Eligibility and speed vary, so comparing options side by side makes sense. At Funding Agent, we match your business profile with lenders that fit, without obligation. Speak to us to compare rates and terms from these and other UK lenders.
Ready to compare these British Business Bank alternatives?
Check eligibility first, or apply now. Both are free and without obligation.
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