Top Business Line of Credit Lenders for Sole Traders UK (2026)
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Top business line of credit lenders for sole traders
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Bizcap | Sole traders needing fast, flexible credit with short trading history | £5,000 to £750,000 | factor 1.1% to 1.4% monthly |
| 2 | Funding Circle | Sole traders with modest turnover wanting an established lender | £10,000 to £750,000 | interest 18% to 24% annually |
| 3 | Triffin | Higher-turnover sole traders seeking larger credit lines | Up to £2,000,000 | interest 1.5% to 1.7% monthly |
| 4 | Time Finance | Sole traders needing substantial revolving facilities at competitive rates | Up to £5,000,000 | interest 5.5% to 13.5% annually |
| 5 | Juice | Established sole traders requiring credit lines of £50,000 or more | £50,000 to £1,000,000 | interest 1.2% to 4% monthly |
| 6 | multifi | Sole traders with two years' trading and moderate turnover | £5,000 to £350,000 | interest 1.99% to 4.99% monthly |
| 7 | PayterPay | Sole traders prioritising lower rates over funding speed | £30,000 to £500,000 | interest 1.33% to 2.25% monthly |
| 8 | TradeBridge | Included for comparison; larger facilities for growing sole traders | Up to £5,000,000 | interest 4% to 10.5% monthly |
| 9 | Acorn Business Finance | Sole traders wanting annual interest pricing on larger credit lines | £15,000 to £5,000,000 | interest 8% to 15% annually |
| 10 | Lloyds Bank | Sole traders preferring a bank overdraft from a high-street name | £1,000 to £50,000 | interest 10.65% to 11.2% annually |
A business line of credit is a revolving facility that lets you draw funds, repay them, and draw again up to an agreed limit. You pay interest only on what you use, not the full facility. For sole traders, this flexibility is valuable: it smooths out irregular income, covers gaps between client payments, and funds stock or equipment purchases without committing to a long-term loan.
Choosing the right line of credit goes well beyond the advertised rate. Sole traders should compare the total cost of borrowing, including arrangement fees and drawdown charges. Check the minimum and maximum facility size, since some lenders start at £5,000 while others require £50,000 or more. Look at how quickly you can access funds after approval. Trading history requirements also vary sharply, from as little as four months to over two years.
Important note:
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest from 6.8% annually
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
Bizcap
Published loan range£5,000 to £750,000
Rate typefactor 1.1% to 1.4% monthly
Overview: Funds can land in as little as 3 hours, making this one of the fastest revolving credit lines available to sole traders. The facility runs from £5,000 to £750,000, repaid at a monthly factor rate of 1.1% to 1.4%. Speed comes with the expectation of suitable security and a personal guarantee.
Best next step: Get a decision and funding within hours as a sole trader.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rapid 3-hour funding turnaround
- Flexible drawdown and repayment
- Facility range up to £750,000
Need to know
- Personal guarantee may be required
- Suitable security is needed
- Limit can be reviewed or withdrawn
Expert take
A speed-first lender built for urgent working-capital needs. Sole traders who can back the facility with assets and strong trading will find the turnaround hard to beat.
Source:https://www.bizcap.co.uk/
Funding Circle
Published loan range£10,000 to £750,000
Rate typeinterest 18% to 24% annually
Overview: Annual interest rates sit between 18% and 24%, giving sole traders a clear cost picture without the compounding that monthly rates can hide. Facilities span £10,000 to £750,000 with funding typically within 48 hours. The trade-off is that security and a personal guarantee are standard requirements.
Best next step: Apply for a revolving credit line with transparent annual pricing.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Transparent annual interest rate
- Established lender with a proven track
- Reusable credit line structure
Need to know
- Personal guarantee typically required
- Security backing is standard
- Strong trading history needed
Expert take
A mainstream revolving credit name with transparent annual pricing. Sole traders with solid trading history and assets to secure the facility will find the terms straightforward.
Triffin
Published loan rangeUp to £2,000,000
Rate typeinterest 1.5% to 1.7% monthly
Overview: Facility limits reach up to £2 million, giving growing sole traders room to scale without switching lenders. The monthly interest rate runs from 1.5% to 1.7%, and funding can arrive within 24 hours. The flexible drawdown structure suits seasonal or project-based income patterns, though limits remain subject to review.
Best next step: Access up to £2 million with flexible repeat drawdowns.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Ceilings up to £2 million
- 24-hour funding turnaround
- Repeat drawdown flexibility
Need to know
- Limit can be reviewed or withdrawn
- Costs may rise with usage
- Ongoing affordability checks apply
Expert take
A high-ceiling revolving facility for sole traders with substantial turnover. The combination of speed and headroom suits those scaling through contract work or seasonal peaks.
Source:https://www.triffin.com/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Unpaid B2B invoices form the backbone of this revolving credit line, making it a natural fit for sole traders who invoice clients and wait weeks to be paid. Annual rates run from 5.5% to 13.5%, with funding available within 24 hours. Facility limits can reach £5 million, though eligibility hinges on invoice quality and debtor concentration.
Best next step: Turn unpaid invoices into working capital within 24 hours.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Invoice-backed working capital
- Rates from 5.5% annually
- Limits up to £5 million
Need to know
- Depends on invoice quality
- Debtor concentration is assessed
- Limit can be reviewed or withdrawn
Expert take
A specialist that turns receivables into a revolving credit line. Sole traders with strong B2B invoices can bridge payment gaps without waiting for customers to settle.
Source:https://www.timefinance.com/
Juice
Published loan range£50,000 to £1,000,000
Rate typeinterest 1.2% to 4% monthly
Overview: Repayments flex with your sales rather than following a fixed monthly schedule, which suits sole traders whose income swings month to month. Monthly rates run from 1.2% to 4%, and facilities range from £50,000 to £1 million with 24-hour funding. The catch is that this structure usually depends on strong card or revenue history.
Best next step: Match repayments to your sales rhythm as a sole trader.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Repayments linked to sales
- 24-hour funding available
- No fixed monthly obligation
Need to know
- Strong card history often needed
- Can cost more than standard loans
- Limit can be reviewed or withdrawn
Expert take
A revenue-flexible model built for card-taking sole traders. Those with consistent card turnover get a credit line that breathes with their business rather than pressing on lean months.
Source:https://www.getmejuice.com/
multifi
Published loan range£5,000 to £350,000
Rate typeinterest 1.99% to 4.99% monthly
Overview: An entry point of £5,000 makes this revolving credit line accessible to sole traders still building their trading record. Monthly rates range from 1.99% to 4.99%, and the facility ceiling reaches £350,000 with 24-hour funding. It is a straightforward working-capital tool, though limits can be reviewed or adjusted over time.
Best next step: Start from £5,000 and draw down only what you need.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Low £5,000 starting limit
- 24-hour funding turnaround
- Straightforward drawdown process
Need to know
- Monthly rate can reach 4.99%
- Limit can be reviewed or withdrawn
- Costs may increase with usage
Expert take
A lower-threshold option for sole traders still establishing their footing. The modest entry point opens the door without demanding years of trading history.
Source:https://www.multifi.co.uk/
PayterPay
Published loan range£30,000 to £500,000
Rate typeinterest 1.33% to 2.25% monthly
Overview: Monthly rates sit between 1.33% and 2.25%, putting this revolving facility in a competitive band for sole traders who want predictable servicing costs. Funding takes around 5 days, and limits run from £30,000 to £500,000. Security and a personal guarantee are standard, so applicants should be prepared for a thorough underwriting process.
Best next step: Secure a rate-competitive revolving facility for your trading business.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Competitive monthly rate band
- Facilities up to £500,000
- Reusable credit structure
Need to know
- 5-day funding turnaround
- Personal guarantee typically required
- Security backing is standard
Expert take
A rate-competitive revolving facility with a measured underwriting pace. Sole traders with time to go through proper checks can secure a cost-effective credit line.
Source:https://www.playter.co/
TradeBridge
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 10.5% monthly
Overview: Ceilings stretch to £5 million, giving established sole traders with large working-capital cycles the headroom they need. Monthly rates run from 4% to 10.5%, and funding arrives within 24 hours. This is a high-volume revolving tool suited to traders with significant turnover, though costs can climb at the upper end of the rate band.
Best next step: Unlock up to £5 million for large working-capital cycles.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Up to £5 million facility
- 24-hour funding speed
- Flexible revolving structure
Need to know
- Monthly rates can reach 10.5%
- Limit can be reviewed or withdrawn
- Large-turnover expectation likely
Expert take
A high-headroom lender for sole traders running substantial operations. The scale suits those with recurring working-capital needs, and the 24-hour turnaround keeps pace with trading demands.
Source:https://www.tradebridge.com/
Acorn Business Finance
Published loan range£15,000 to £5,000,000
Rate typeinterest 8% to 15% annually
Overview: Asset-backed revolving credit suits sole traders who own equipment, vehicles, or machinery and want to unlock value without selling productive assets. Annual rates range from 8% to 15%, with facilities spanning £15,000 to £5 million and 24-hour funding. Security is integral to the structure, so legal and valuation costs may apply.
Best next step: Use your business assets to back a revolving credit line.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Asset-backed working capital
- Limits up to £5 million
- 24-hour funding available
Need to know
- Security and valuation costs apply
- Personal guarantee may be needed
- Strong trading history expected
Expert take
An asset-leveraged model for sole traders with equipment or vehicles to secure. Those who can pledge productive assets gain access to significant working capital at annual rates.
Lloyds Bank
Published loan range£1,000 to £50,000
Rate typeinterest 10.65% to 11.2% annually
Overview: A familiar high-street option: the business overdraft gives sole traders a revolving buffer of £1,000 to £50,000 at an annual rate of 10.65% to 11.2%. Funding typically clears within 48 hours. Underwriting is thorough and may feel slower than alternative lenders, but the backing of a major bank brings a level of trust that some sole traders prefer.
Best next step: Open a business overdraft with a trusted high-street bank.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Trusted high-street bank backing
- Annual rate from 10.65%
- Simple overdraft structure
Need to know
- Stricter underwriting than alternatives
- Limit can be reviewed or withdrawn
- Personal guarantee may be needed
Expert take
A mainstream bank overdraft for sole traders who value brand familiarity. Those with clean accounts and patience through underwriting get a straightforward revolving buffer.
Revolving Credit Facility Calculator
How a revolving credit facility works for sole traders
A business line of credit gives sole traders access to a pre-approved pool of funds. You draw what you need, when you need it. You only pay interest on the amount you actually use, not the full facility limit. As you repay what you have drawn, those funds become available again. This revolving structure is what sets it apart from a fixed-term loan.
For sole traders with uneven monthly income, this flexibility is valuable. You might draw £3,000 to buy stock ahead of a busy period, repay it after sales come in, and then draw again to cover a tax bill. There is no need to reapply each time. Most facilities on this list offer terms from 1 month up to 2 years, and providers such as Bizcap can approve facilities starting at £5,000.
Eligibility for a business line of credit as a sole trader
Lenders assess sole traders on trading history, annual turnover, and personal credit profile. Minimum requirements vary across the panel.
| Lender | Min Trading History | Min Annual Turnover | Min Facility |
|---|---|---|---|
| Bizcap | 4 months | £144,000 | £5,000 |
| Funding Circle | 1 year | £30,000 | £10,000 |
| Juice | 6 months | £240,000 | £50,000 |
| multifi | 2 years | £250,000 | £5,000 |
| PayterPay | 1 year | £250,000 | £30,000 |
Personal guarantees are standard across most revolving credit facilities for sole traders. None of the onboarded lenders on this list require homeownership as a condition. If you have been trading for less than 12 months, Bizcap starts at 4 months and Juice at 6 months, though both expect a higher turnover threshold than Funding Circle, which asks for £30,000 annually.
Comparing rates and costs on sole trader lines of credit
Rate structures for business lines of credit fall into two groups: monthly factor rates and annual interest rates. Knowing the difference helps sole traders compare costs accurately.
Among lenders charging monthly, Bizcap publishes rates from 1.1% to 1.4% per month. Triffin sits at 1.5% to 1.7% per month, and PayterPay ranges from 1.33% to 2.25% per month. Juice and multifi span wider bands, from 1.2% to 4% per month and 1.99% to 4.99% per month respectively. TradeBridge rates start at 4% per month and reach 10.5% per month.
On the annual side, Time Finance offers 5.5% to 13.5% annually and Acorn Business Finance ranges from 8% to 15% annually. Funding Circle publishes rates of 18% to 24% annually, while Lloyds Bank sits at 10.65% to 11.2% annually for its overdraft product.
A sole trader drawing £10,000 at 1.5% per month pays roughly £150 in interest that month. The same drawdown at 20% annually costs around £167.
When a business line of credit beats a term loan for sole traders
A term loan gives you a lump sum with fixed monthly repayments. A line of credit gives you a facility you can draw, repay, and draw again. For sole traders whose income fluctuates month to month, the second option often makes more sense.
Lines of credit suit short-term working capital needs: bridging a gap between invoices, buying stock for a seasonal rush, or covering an unexpected repair. Because you only pay interest on what you draw, idle funds do not cost you. Term loans, by contrast, charge interest on the full amount from day one.
The trade-off is that line of credit rates can be higher on a like-for-like comparison. However, the total cost of borrowing can still be lower if you repay quickly and draw only what you need. Sole traders who value flexibility over long-term certainty tend to prefer revolving facilities, particularly when cash flow is uneven but predictable enough to manage regular repayments.
