December 12, 2025

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Oak North Bank Business Loans Review

Looking for £250K-£25M business loans? See OakNorth’s flexible terms, eligibility, and fast funding. Discover if it’s a fit for your SME.

Abdus-Samad Charles

Finance Writer

If you are searching for "oaknorth banks business loans", you are probably looking at a sizeable funding opportunity and want to know whether OakNorth Bank is the right partner. In this review we walk through how OakNorth Bank's business loans work, who they suit, what they may cost in practice, and how they compare with other UK business finance options.

TL;DR: OakNorth Bank is a good fit for established, profitable SMEs and mid-market businesses needing £1m+ for growth or property deals, but it is not designed for startups or smaller working capital needs.

Pros:

Bespoke structuring for complex growth, acquisition and property transactions.
Loan sizes from around £1m into the tens of millions for the right deals.
Flexible terms, including term debt, revolving credit and interest-only periods by arrangement.

Cons:

Minimum loan size is high, so smaller SMEs may be better served elsewhere.
Pricing is fully underwritten and not advertised as a simple rate card.
Expect full-bank due diligence, valuation and legal costs, which can feel heavy compared with a simple unsecured business loan.

Best for: Established, profitable UK businesses and experienced property operators looking for £1m+ of tailored debt finance, where a relationship approach and structuring flexibility matter more than speed alone.

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OakNorth Bank business loans at a glance

OakNorth Bank is a UK business bank focused on established SMEs and mid-market firms. Its business loans are bespoke, with facilities typically starting from £1 million and going up to tens of millions for the right opportunity. Below is a quick snapshot.

Feature	Details (indicative)
Product type	Bespoke business term loans, revolving credit facilities and property-backed loans.
Loan amounts	Typically from £1,000,000 up to multiple tens of millions, depending on the strength of the case.
Typical terms	Medium to long term; the exact term is agreed case by case based on use of funds, security and cash flow.
Repayment style	Amortising term loans, interest-only periods and bullet or part-bullet repayments may be available by agreement.
Security	Secured and "unsecured" loans. Even "unsecured" loans are usually supported by debentures, share charges and/or personal or corporate guarantees.
Minimum trading history	Generally at least 2 years' trading, with a proven track record of profitability.
Minimum turnover	Often £1m+ annual turnover and a positive balance sheet.
Decision & funding speed	Initial feedback in days, with completion typically in days to weeks once due diligence and legals are complete.

You can explore OakNorth's own overview of business loans and their guide to business loans for their latest positioning. If you are already confident OakNorth is the right fit, their online application page is the starting point.

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How OakNorth Bank's business loans actually work in practice

OakNorth Bank is not a "click and get a small loan in minutes" fintech lender. It behaves more like a specialist relationship bank, sitting between the very large high street banks and smaller alternative lenders.

You typically start by submitting a summary of your business, latest accounts and the funding requirement via their online form or by being introduced through a broker. OakNorth then assigns a deal team who will explore the opportunity with you. Expect detailed questions on your trading performance, historic and projected cash flows, management experience and the underlying asset or transaction.

For most deals, OakNorth will want to see full financial information (management accounts, filed accounts, forecasts), a clear business plan and details of any security being offered. For property transactions this usually includes leases, tenancy schedules, planning documents and professional valuations. For trading businesses, they may look closely at customer concentration, margins, pipeline and how resilient your revenues are.

Once they are comfortable with the credit story, OakNorth will issue heads of terms that outline the proposed facility type, size, margin, fees, security and covenants. If you accept, they move into full underwriting, including valuation and legal due diligence. This stage is more in-depth than a typical small unsecured business loan, but it allows them to structure larger, often more flexible facilities.

Repayments depend on the structure you agree. A straightforward amortising term loan might have monthly repayments of capital plus interest. For example, purely for illustration, a £2m loan over 5 years with a notional fixed interest rate of 7% per annum could mean monthly repayments in the region of £40,000. In other cases you might agree an interest-only period during construction or refurbishment, followed by capital repayments once the project is trading, or a revolving facility where you draw and repay as needed within an overall limit.

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Rates, fees and what this business loan really costs

OakNorth does not publish a standard rate card for business loans. Pricing is bespoke and depends on factors such as leverage, security, sector, deal complexity, track record, and the strength of your cash flows. Expect interest to be quoted as a margin above a reference rate (for example, the Bank of England base rate or SONIA) or as a fixed all-in rate for the term of the loan.

On top of interest, it is normal to pay an arrangement fee, usually a percentage of the facility size. For property or asset-backed deals, there are also third-party costs: valuation fees, legal fees and potentially monitoring surveyor costs. OakNorth may ask you to place funds on account to cover these professional fees before they proceed to full underwriting, and these are generally non-refundable if the deal does not complete.

For secured facilities, you should also factor in any ongoing fees (for example, non-utilisation fees on an undrawn revolving credit line) and covenant testing costs. These can make a facility more expensive than the headline interest margin alone.

Early repayment terms vary by deal. Some facilities may allow you to prepay without penalty; others will include early repayment charges or "break costs" if you repay during a fixed-rate period. Always read the facility letter carefully and ask your adviser or broker to quantify the impact of early repayment before you sign.

If you want a sense-check on where OakNorth pricing sits against the wider market, Funding Agent can benchmark offers from a panel of banks and alternative lenders for similar sizes, terms and risk profiles.

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Eligibility, who OakNorth Bank is a good fit for

OakNorth Bank aims its business lending at established, growing SMEs and mid-market businesses rather than startups or micro businesses. While every deal is different, you are more likely to be a good fit if:

Your business has been trading for at least 2 years.
You are profitable or have a clear, credible path to sustainable profitability.
You have a positive balance sheet and can show reasonable leverage levels.
Your annual turnover is at least £1m and often significantly higher.
You have an experienced management team with relevant sector expertise.
You can provide suitable security (property, business assets, guarantees) for larger facilities, or are comfortable with debentures and share charges for "unsecured" lending.

They are active across sectors such as trading businesses, hospitality, leisure, healthcare, professional services, and a range of property investment and development projects. Highly speculative ventures, very early-stage startups and distressed businesses are much less likely to qualify.

If you fall just short of these criteria, or you need less than £1m, it is often worth looking at other Business Loans via Funding Agent, where minimums can be far lower.

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Pros, cons and when OakNorth Bank is a good idea

Choosing a lender for a £1m+ facility is a major strategic decision. Here is how OakNorth Bank typically compares.

Pros

Bespoke structuring: Facilities can be highly tailored around your project, including staged drawdowns, interest-only periods and covenant packages aligned to your business model.
Large ticket sizes: OakNorth is comfortable providing multi-million-pound facilities, often larger than those available from many online or alternative lenders.
Sector knowledge: Deal teams are used to structuring finance for complex trading and property transactions, working with entrepreneurs and private equity-backed businesses.
Relationship-led approach: You get access to decision-makers who can take a view on nuance, rather than relying purely on automated scoring.

Cons

Not for small loans: If you need £50k–£500k, OakNorth is unlikely to be the right fit; other lenders can be more suitable and faster.
Heavier process: Expect full information requests, site visits, valuations and legal due diligence, which take time and incur up-front costs.
No off-the-shelf pricing: Because all pricing is bespoke, you will not know your rate until after underwriting, and comparing like-for-like with other offers can be tricky without help.

Best for

Established trading businesses looking to fund a major expansion, acquisition or management buy-out with £1m+ of senior debt.
Experienced property investors and developers seeking tailored finance for commercial or residential schemes.
Mid-market companies that have outgrown simple unsecured facilities and want a bank partner capable of scaling with them.

Real world examples of how SMEs use these business loans

These are illustrative scenarios to show where OakNorth-style facilities can work in practice.

Example 1: Multi-site hospitality roll-out
A profitable restaurant group with £8m turnover wants to acquire three additional sites. OakNorth agrees a £4m term loan alongside a smaller revolving facility for fit-out costs. The loan is partially interest-only during refurbishment, then amortises over the remaining term once all sites are trading. The group uses the funding to double EBITDA over three years.

Example 2: Manufacturing capacity expansion
A long-established manufacturer with strong order books needs £2.5m to upgrade machinery and expand its facility. OakNorth structures a secured term loan supported by a debenture over business assets and a charge over the premises. The facility is repaid over several years from increased cash generation as productivity improves.

Example 3: Property investment portfolio
A professional landlord with an existing portfolio wants to acquire a mixed-use block in a regional city. OakNorth provides a £5m loan on an interest-only basis during a refurbishment and lease-up phase, switching to amortising repayments once stabilised. The investor benefits from a lender comfortable with complex property cash flows and covenant structures.

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How Funding Agent can help you compare OakNorth Bank against other lenders

When you are talking about seven-figure facilities, it pays to benchmark offers rather than going directly to a single lender. That is where Funding Agent comes in. We work with a panel of banks and specialist lenders, including those who operate in the same space as OakNorth Bank.

By understanding your sector, funding need, security and appetite for covenants, we can shortlist the lenders most likely to compete strongly for your deal, then help you compare headline pricing, fees, structure and small print. If OakNorth is a good fit, we will tell you. If another lender offers a better mix of flexibility and cost, we will highlight that too.

For a deeper dive into this lender, see our dedicated Oaknorth Reviews guide, or compare them directly with other banks using resources such as Oaknorth Vs Shawbrook.

If you want to see how OakNorth Bank stacks up, compare business finance options with Funding Agent before you sign.

Alternatives to OakNorth Bank's business loans

OakNorth Bank suits larger, more complex deals, but many SMEs either cannot meet their criteria or simply do not need £1m+. In those cases, it is worth looking at other routes.

Smaller unsecured term loans: Many lenders offer unsecured Business Loans from as little as £10k–£25k, often with simpler applications and faster decisions.
Asset-backed finance: If your main need is equipment or vehicles, Asset Finance can fund specific purchases without tying up all your banking lines.
Property-specific borrowing: For pure property projects, some lenders focus purely on Commercial Mortgages and development finance, which may offer different gearing or pricing structures.
Working capital and revolving lines: If your core problem is cash flow volatility rather than a one-off project, revolving Working Capital Loans, overdrafts or a Line Of Credit might be more appropriate.
Short-term bridging: For quick property purchases or turnaround situations, specialist lenders provide Bridging Loans that can later be refinanced onto a longer-term product.
Everyday spending: For low six-figure or lower needs, Business Credit Cards or overdrafts can cover day-to-day expenses without a full term loan.