Top 10 Startup Loans for Sole Traders in the UK 2026
.png)
Top 10 asset finance providers for sole trader startups
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Lombard | Sole traders with 12+ months trading needing asset finance | Up to £5,000,000 | interest 4% to 11.5% monthly |
| 2 | Liberty Leasing | Sole traders needing £10,000-plus in equipment funding | £10,000 to £2,000,000 | interest 11% to 16% annually |
| 3 | Reward Funding | Established sole traders with larger asset finance needs | £100,000 to £5,000,000 | interest 0.99% to 3% monthly |
| 4 | Barclays | Sole traders comparing bank asset finance from £1,000 | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 5 | Lloyds Bank | Startup sole traders needing smaller asset finance amounts | £1,000 to £50,000 | interest 10.65% to 11.2% annually |
| 6 | Shire Leasing | Sole traders seeking mid-range asset finance from £5,000 | £5,000 to £750,000 | interest 4% to 11% monthly |
| 7 | Armada Asset Finance | Early-stage sole traders with smaller asset funding needs | £2,000 to £250,000 | interest 5% to 13% annually |
| 8 | Genesis Asset Finance | Sole traders funding specialist equipment purchases | Up to £150,000 | interest 5% to 13.5% annually |
| 9 | HSBC Bank | Sole traders comparing mainstream bank asset finance | £1,000 to £300,000 | interest 8.6% to 11.3% annually |
| 10 | NatWest Bank | Established sole traders with proven turnover levels | £500 to £10,000,000 | interest 4.5% to 10.5% annually |
Asset finance lets sole traders spread the cost of business equipment, vehicles or machinery over time rather than paying upfront. The asset itself secures the funding, which can make approval more accessible for new businesses without a long trading history. For sole traders starting out, this approach preserves working capital while getting essential kit in place from day one.
Comparing asset finance lenders goes beyond headline rates. Sole traders should check minimum trading history requirements, as some providers ask for 12 months while others may accept newer businesses. The minimum loan amount matters too — some lenders start at £500, others at £100,000. Check whether the lender works with sole traders specifically and what types of assets they will fund.
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.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5% monthly
Overview: Lombard funds asset purchases from £1,000 up to £5,000,000, making it a practical route for sole traders who need equipment or vehicles to launch a new business. As a long-established name in UK asset finance, it often considers startups where the asset holds clear resale value. Approval turns on the asset more than trading history.
Best next step: Check Lombard rates through Funding Agent
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Startup-friendly where asset value is strong
- Wide funding band from small to large
- Decades of asset finance experience
Need to know
- Secured against the asset you buy
- Deposit or part-payment often required
- Rates vary by asset type and age
Expert take
A heavyweight asset funder that judges the kit more than the company. For a sole trader startup buying straightforward equipment, Lombard's willingness to look past limited trading history is the real draw.
Source:https://www.lombard.co.uk/
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16% annually
Overview: Liberty Leasing can turn around asset finance decisions within 24 hours, which helps sole traders who need to move quickly on a vehicle or equipment purchase. Annual interest rates run from 11% to 16%, and the lender funds from £10,000 to £2,000,000. Early-stage businesses without long trading records may still qualify where the asset is standard and easy to value.
Best next step: Compare Liberty Leasing rates
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Fast 24-hour decision turnaround
- Accepts newer sole trader businesses
- Clear annual interest rate structure
Need to know
- Minimum facility size is £10,000
- Rates higher than bank asset finance
- Asset type affects eligibility
Expert take
A responsive asset funder that gets sole traders from application to approval in hours, not days. The asset quality matters more than years on the books.
Reward Funding
Published loan range£100,000 to £5,000,000
Rate typeinterest 0.99% to 3% monthly
Overview: Reward Funding structures facilities from £100,000 with monthly rates starting at 0.99%, giving sole traders with larger asset needs a flexible funding line. Its revolving credit model lets you draw and repay against the facility as your startup grows, rather than locking you into a fixed term. The lender looks at asset quality and deal structure ahead of trading history.
Best next step: Explore Reward Funding options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Revolving credit suits growing startups
- Monthly rates from 0.99%
- Considers asset strength over trading age
Need to know
- Minimum facility is £100,000
- Legal and valuation costs may apply
- Facility can be reviewed or reduced
Expert take
A structured finance shop that works well for sole traders buying high-value assets with clear resale markets. The revolving model means you only pay for what you draw, which suits uneven early revenue.
Source:https://rewardfunding.co.uk/
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: For a sole trader starting out, Barclays' £1,000 minimum facility threshold makes asset finance a realistic option. Annual rates sit between 8.5% and 14.9%, and the bank's broad product range means you can start small and scale. Expect a more traditional underwriting process that will want to see personal income stability alongside the asset's value.
Best next step: See Barclays asset finance options
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Small start facilities from £1,000
- Trusted high-street bank brand
- Can grow facility as business scales
Need to know
- Slower bank underwriting process
- May need personal income evidence
- Trading history often preferred
Expert take
A mainstream bank for sole traders with clean personal finances and a clear asset need. The low starting threshold helps, and scaling the facility as the business grows is straightforward.
Lloyds Bank
Published loan range£1,000 to £50,000
Rate typeinterest 10.65% to 11.2% annually
Overview: Lloyds Bank runs a dedicated start-up programme alongside its asset finance range, funding from £1,000 to £50,000 at annual rates between 10.65% and 11.2%. Sole traders in their first year of trading can sometimes access this route where a standard business loan would be out of reach. Decisions take around 48 hours, and a business plan is typically required.
Best next step: Check Lloyds start-up funding options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Dedicated start-up programme available
- Entry point as low as £1,000
- Fixed annual rates aid budgeting
Need to know
- 48-hour turnaround, not instant
- Business plan usually required
- Upper limit £50,000 for this route
Expert take
The clearest high-street path for a sole trader with no trading history. Lloyds' start-up programme signals a willingness to lend that most banks reserve for established businesses alone.
Shire Leasing
Published loan range£5,000 to £750,000
Rate typeinterest 4% to 11% monthly
Overview: Monthly rates between 4% and 11% make Shire Leasing a cost-competitive choice for sole traders funding equipment up to £750,000. The lender often accepts startup applications that high-street banks decline, focusing its assessment on the asset's remarketability and your personal credit profile rather than trading history.
Best next step: Compare Shire Leasing rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Competitive monthly rate structure
- Accepts startup sole traders
- Funds up to £750,000
Need to know
- Monthly rates, not annual APR
- Personal credit check likely
- Asset must hold clear resale value
Expert take
A specialist asset funder that often says yes where banks say no. For a sole trader with decent personal credit and a solid asset to finance, Shire is worth a look before approaching the high street.
Armada Asset Finance
Published loan range£2,000 to £250,000
Rate typeinterest 5% to 13% annually
Overview: A £2,000 minimum makes Armada Asset Finance one of the most accessible asset lenders for sole traders who need just a modest piece of kit to begin trading. Annual rates sit between 5% and 13%, and decisions typically land within 24 hours. The lender is known to consider newer businesses where the asset is standard and insurable.
Best next step: Explore Armada asset finance
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Low £2,000 minimum facility
- Considers new sole trader businesses
- Fast 24-hour turnaround
Need to know
- Asset eligibility criteria apply
- Rates depend on asset and profile
- Smaller maximum than some rivals
Expert take
A compact asset funder that serves the lower end well. Sole traders needing a single piece of kit to get going will find Armada's low starting threshold a genuine help.
Genesis Asset Finance
Published loan rangeUp to £150,000
Rate typeinterest 5% to 13.5% annually
Overview: Genesis Asset Finance specifically works with startups and funds equipment purchases up to £150,000 at annual rates between 5% and 13.5%. Sole traders buying an existing business or acquiring assets to launch can lean on Genesis's comfort with transaction-linked funding. Decisions take around three days, reflecting a more detailed underwriting process that looks at the overall deal.
Best next step: Check Genesis startup funding options
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Explicitly startup-friendly
- Annual rates from 5%
- Funds acquisition-related purchases
Need to know
- Three-day decision timeline
- Detailed deal assessment required
- Focuses on equipment, not working capital
Expert take
One of the few asset funders that actively courts startups. A sole trader buying equipment as part of a business acquisition will find Genesis more receptive than most.
HSBC Bank
Published loan range£1,000 to £300,000
Rate typeinterest 8.6% to 11.3% annually
Overview: Sole traders who already bank with HSBC may find its asset finance process smoother, with rates from 8.6% and decisions typically within 48 hours. The bank funds from £1,000 to £300,000 and covers a wide range of asset types. Startup applicants should expect closer scrutiny of personal finances and a detailed business plan.
Best next step: See HSBC asset finance options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rates from 8.6% annually
- Wide product and sector coverage
- Existing HSBC customers may benefit
Need to know
- 48-hour typical turnaround
- Startups face stricter checks
- Business plan likely required
Expert take
A solid bank option for sole traders who already bank with HSBC. Competitive rates reward those who can meet the stricter application standards.
Source:https://www.business.hsbc.uk/en-gb/finance-and-borrowing
.png)
NatWest Bank
Published loan range£500 to £10,000,000
Rate typeinterest 4.5% to 10.5% annually
Overview: From £500 to £10,000,000, NatWest's asset finance range spans the smallest sole trader startup need to the largest equipment investment. Annual rates run from 4.5% to 10.5%, backed by a start-up support programme that runs alongside the lending product. That £500 floor means you can fund a single piece of equipment without overborrowing.
Best next step: Explore NatWest start-up funding
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Lowest entry point at £500
- Annual rates from 4.5%
- Start-up support programme available
Need to know
- Bank underwriting still applies
- Personal guarantee may be requested
- Trading history strengthens application
Expert take
NatWest's £500 starting point is genuinely useful for sole traders testing a business idea with minimal equipment needs. The start-up programme adds support most high-street banks simply do not match.
Source:https://www.natwest.com/business/loans-and-finance.html
Unsecured Business Loan Calculator
Startup loan eligibility criteria for sole traders
Lenders look at several factors when assessing a sole trader startup application. Your personal credit history carries weight because your business and personal finances are linked. Most lenders will check your credit file and may ask to see bank statements from the last three to six months.
Trading history is another key hurdle. Lombard asks for at least one year of trading and a minimum turnover of £25,000. NatWest sets a higher bar, requiring turnover of £300,000. Several lenders on our list do not publish a fixed minimum business age, which may leave room for newer sole traders to apply.
You should also expect to show evidence of income, existing contracts, or confirmed purchase orders. Without a trading track record, lenders will lean more heavily on your personal financial position and the strength of your business plan.
How asset finance can fund a sole trader startup
Asset finance is a practical funding route for sole traders who need equipment, vehicles, or machinery to launch their business. Instead of borrowing cash outright, you finance a specific asset. The asset itself acts as security, which can make approval easier than an unsecured loan.
Minimum facility sizes vary widely. NatWest starts from as little as £500, while Barclays, Lloyds, and HSBC all begin at £1,000. Armada Asset Finance offers facilities from £2,000, and Liberty Leasing starts at £10,000. At the upper end, Reward Funding requires a minimum loan of £100,000, which suits larger capital purchases.
Rates differ by lender and asset type. Lombard publishes rates from 4% to 11.5% per month, while Liberty Leasing quotes 11% to 16% annually. Reward Funding offers rates from 0.99% to 3% per month. Always confirm whether the rate is monthly or annual before comparing, as the difference is significant.
Personal guarantees for sole trader startup applicants
A personal guarantee is a common requirement for sole trader startup funding. It means you agree to repay the loan personally if your business cannot. For sole traders, this distinction matters less because you are already personally liable for business debts. However, it remains an important term to understand.
Among the lenders on our list, Liberty Leasing, Reward Funding, Lloyds Bank, HSBC, Armada Asset Finance, and NatWest all state they require a personal guarantee. Lombard does not publish a clear position, so you should ask directly before applying.
Before signing, check whether the guarantee is limited to a specific amount or unlimited. An unlimited guarantee puts your personal assets, including your home, at risk. Always seek independent legal advice if you are unsure about the terms.
Preparing your sole trader startup loan application
A strong application starts with a clear business plan. Lenders want to see realistic financial projections, a breakdown of how you will use the funds, and evidence of market demand. If you are financing an asset, include quotes or invoices for the equipment.
Gather your documents early. Most lenders will ask for your last three to six months of personal bank statements, proof of identity, and your SA302 tax calculation or HMRC self-assessment evidence. If you have existing contracts or letters of intent from clients, include those too.
Be ready to explain any gaps in your trading history and how you plan to manage repayments. Lenders like Lombard, which requires a minimum of one year trading, may still consider younger businesses if the application is otherwise strong. A well-prepared case gives you the best chance of approval as a sole trader startup.
