Lenders with the Lowest Apr business loans UK
Lenders with the Lowest Apr loans UK
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 2026-01-15.
1. Funding Agent
Funding Agent Funding Agent offers unsecured business loans with a focus on flexibility and speed, catering to a wide range of industries with borrowing capacities up to £5 million. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £5,000,000
- Min APR: 6.9%
- Max APR: 24.9%
- Loan Duration: 3–72 months⌛
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans, Equipment Financing
- Industries: Technology, Retail, Manufacturing
Pros
- Wide range of loan amounts
- Flexible terms
- No hidden fees
Cons
- APR may be high for larger loans
Sources: https://www.fundingagent.co.uk/financing-options/business-loans
2. TSB Bank
TSB Bank TSB offers a range of business lending and finance options tailored to small and medium-sized enterprises, including base-rate linked loans and commercial mortgages. It provides flexible borrowing options for operational and expansion needs. Here's what to know:
Loan Details
- Min Amount: £13,000
- Max Amount: £500,000
- Min APR: 9.9%
- Max APR: 9.94%
- Loan Duration: 1–25 years⌛
Services & Industries
- Finance Types: Base Rate Loans, Fixed Rate Loans
- Industries: Retail, Services
Pros
- Diverse loan options
- Promotional rates
Cons
- Higher base rates
Sources: https://www.tsb.co.uk/business/loans-and-finance/business-lending-rates.html
3. Tesco Bank
Tesco Bank Tesco Bank provides personal and business loans, known for competitive rates, with options suitable for certain retail and small business needs. It supports clients looking for straightforward borrowing solutions. Here's what to know:
Loan Details
- Min Amount: £7,500
- Max Amount: £15,000
- Min APR: 3.8%
- Max APR: 4.1%
- Loan Duration: 1–5 years⌛
Services & Industries
- Finance Types: Unsecured Personal Loans, Business Loans
- Industries: Retail
Pros
- Low APR for members
- Fixed repayments
Cons
- Limited to Tesco customers
Sources: https://mortgagesoup.co.uk/tesco-bank-cuts-loan-rate-lowest-ever/
4. Novuna Personal Finance
Novuna Personal Finance Novuna specialises in quick approvals for small business loans, often secured on assets or cash flow. It provides flexible options suited for operational needs and growth plans. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £50,000
- Min APR: 7%
- Max APR: 15%
- Loan Duration: 1–5 years⌛
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans
- Industries: Services, SMEs
Pros
- Award-winning service
- No hidden fees
Cons
- Higher rates for unsecured loans
5. M&S Bank
M&S Bank M&S Bank offers personal loans suited for individuals and some small businesses, with competitive rates and flexible terms for recognised clients. It serves those seeking straightforward borrowing options. Here's what to know:
Loan Details
- Min Amount: £5,000
- Max Amount: £15,000
- Min APR: 6.6%
- Max APR: 9.9%
- Loan Duration: 3–72 months⌛
Services & Industries
- Finance Types: Personal Loans, Unsecured Loans
- Industries: Personal Finance
Pros
- Competitive rates
- Loyalty benefits
Cons
- Selective eligibility
Sources: https://www.myfinancialbroker.co.uk/lender-contact-info/unsecured-loans/m-s-bank-unsecured-loans/
6. Nationwide Finance
Nationwide Finance Nationwide Finance provides a range of business loans, including options for secured or unsecured borrowing. It offers direct lending without broker involvement, suitable for various business needs. Here's what to know:
Loan Details
- Min Amount: £6,000
- Max Amount: £10,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Flexible terms⌛
Services & Industries
- Finance Types: Direct Lending, Secured Loans
- Industries: Various sectors
Pros
- No broker fees
- High loan limits
Con
- APR not disclosed
Sources: https://www.nationwidefinance.co.uk
7. Zopa Bank
Zopa Bank Zopa Bank combines traditional banking with fintech options, offering competitive loan rates that are often unsecured. It supports clients looking for quick, transparent borrowing with flexible repayment options. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £25,000
- Min APR: 9.9%
- Max APR: 34.9%
- Loan Duration: 1–5 years⌛
Services & Industries
- Finance Types: Peer-to-peer Lending, Personal Loans
- Industries: Individuals, Small Businesses
Pros
- Fintech integration
- Transparent fees
Cons
- Higher APR for smaller sums
Sources: https://www.zopa.com/loans
8. Santander UK
Santander UK Santander offers a variety of business finance options, including flexible loans for growth, compacted with options for operational and expansion finance. It caters to SMEs needing adaptable financing solutions. Here's what to know:
Loan Details
- Min Amount: £2,000
- Max Amount: £25,000
- Min APR: 7.9%
- Max APR: 23.7%
- Loan Duration: 1–25 years⌛
Services & Industries
- Finance Types: Growth Capital Loans, Structured Finance
- Industries: Corporate, SMEs
Pros
- Flexible repayments
- Commercial focus
Con
- Limited to larger SMEs
Sources: https://www.santander.co.uk/corporate/solutions/finance/business-loans
9. MoneySavingExpert (MSE)
MoneySavingExpert (MSE) MSE provides guidance on personal loans and offers broad comparisons across lenders, helping users find suitable options for various borrowing needs. It is useful for those seeking straightforward, low-cost funding solutions. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £15,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Personal Loans, Guided Searches
- Industries: Personal Finance
Pros
- Comprehensive guides
- Expert advice
Cons
- No direct lending
Sources: https://www.money.co.uk/business/business-loans
10. Fast Loan UK
Fast Loan UK Fast Loan UK provides quick access to low APR personal and business loans, often secured on assets, with flexible terms suitable for various operational needs. It supports businesses requiring rapid funding solutions. Here's what to know:
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Varied terms⌛
Services & Industries
- Finance Types: Unsecured Loans, Secured Loans
- Industries: General
Pros
- Quick application process
- Low APR
Cons
- Limited loan details available
Sources: https://www.fastloanuk.co.uk/blog/top-10-low-apr-loan-companies-in-the-uk/
How to choose
Matching the right lender depends on your specific funding needs. Consider loan size and APR to fit your budget. Check eligibility criteria and compare repayment options. Speed of approval may vary between providers. Review fees, early repayment terms and security requirements. Choosing a lender aligned with your financial situation leads to better borrowing experiences. Always compare available offers before applying.
Conclusion
Matching providers to your needs involves understanding their focus—whether from banks, brokers, or specialists. Banks often provide straightforward, quick access for standard loans. Brokers might offer broader options for complex requirements. Specialist lenders can tailor solutions for sector-specific needs. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Always verify current costs and terms directly with the lender; pricing may change.
