The Best Term Loan Lenders in the UK for 2026

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 2025-10-01.

1. Funding Agent

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Funding Agent offers unsecured business loans focused on flexibility and competitive rates. They're suitable for SMEs seeking tailored funding without relying on collateral. Quick approvals make them ideal for those needing immediate financial solutions.

Loan Details

• Min Amount: £1,000
• Max Amount: £500,000
• Min APR: 6.9%
• Max APR: 8.9%
• Loan Duration: 0 months⌛

Services & Industries

• Finance Types: Unsecured Loans
• Industries: Multiple sectors

Pros

• Competitive APR rates
• Flexible loan terms

Cons

• Limitations for startup businesses

Sources: https://www.fundingagent.co.uk/post/top-10-unsecured-business-loans-for-startups-in-the-uk

2. Nucleus Commercial Finance

Nucleus Commercial Finance provides a range of loans for SMEs including secured options. They cater to diverse needs with flexibility in repayment terms. Particularly suited for businesses seeking varied financial products with collateral options.

Loan Details

• Min Amount: £10,000
• Max Amount: £2,000,000
• Min APR: 5%
• Max APR: 20%
• Loan Duration: 3–72 months⌛

Services & Industries

• Finance Types: Unsecured Loans, Secured Loans
• Industries: Various industries

Pros

• Flexible loan terms
• Competitive rates

Cons

• Higher rates for higher-risk clients

Sources: https://www.fundinvoice.co.uk/blog/advice/post/nucleus-lowers-unsecured-business-loan-rates.html

3. iwoca

iwoca delivers rapid and adaptable loans for small businesses. They focus on quick decisions and custom payment plans. Best for UK SMEs needing quick working capital access without significant paperwork.

Loan Details

• Min Amount: £0
• Max Amount: £1,000,000
• Min APR: 6%
• Max APR: 49%
• Loan Duration: Up to 12 months⌛

Services & Industries

• Finance Types: Business Loans
• Industries: Various sectors

Pros

• Fast application process
• Tailored repayment

Cons

• High APR for some products

Sources: https://www.iwoca.co.uk/loan-categories/business-loan-interest-rates

4. Barclays

Barclays offers both secured and unsecured loans, geared towards flexibility in repayment. Ideal for established businesses looking for reliable lending options from a well-known bank.

Loan Details

• Min Amount: £1,000
• Max Amount: £5,000
• Min APR: 11.2%
• Max APR: 14.9%
• Loan Duration: 1–25 years⌛

Services & Industries

• Finance Types: Secured Loans, Unsecured Loans
• Industries: Multiple industries

Pros

• Flexible repayment terms
• Reputable bank

Cons

• Higher APR for small loans

Sources: https://www.barclays.co.uk/business-banking/borrow/loans/

5. Lloyds Bank

Lloyds Bank provides business loans with a focus on fixed rates and flexible durations. Suitable for smaller enterprises seeking stable repayment terms over set periods.

Loan Details

• Min Amount: £1,000
• Max Amount: £50,000
• Min APR: 11.2%
• Max APR: 11.2%
• Loan Duration: 1–25 years⌛

Services & Industries

• Finance Types: Business Loans
• Industries: Various sectors

Pros

• Flexible loan durations
• Competitive fixed rates

Cons

• Limited to smaller loan amounts

Sources: https://lloydstsb.co.uk/business/business-loans.html

6. NatWest

NatWest caters to small businesses with loans designed for growth and expansion. Their suitable candidates are those qualifying for competitive rates with structured support.

Loan Details

• Min Amount: £1,000
• Max Amount: £100,000
• Min APR: 10%
• Max APR: 15%
• Loan Duration: 1–7 years⌛

Services & Industries

• Finance Types: Small Business Loans
• Industries: Various sectors

Pros

• Competitive interest rates
• Comprehensive support

Cons

• Stricter lending criteria

Sources: https://www.iwoca.co.uk/lenders/natwest-business-loan

7. MAF Finance Group

MAF Finance Group specialises in personalised loan solutions with adjustable terms. They're ideal for businesses that prioritize tailored financing without a static rate structure.

Loan Details

• Min Amount: £10,000
• Max Amount: £2,000,000
• Min APR: 0%
• Max APR: 0%
• Loan Duration: 3–72 months⌛

Services & Industries

• Finance Types: Unsecured Loans
• Industries: Multiple sectors

Pros

• Tailored solutions
• Broad loan range

Cons

• Variable APR based on client profile

Sources: https://maffinancegroup.co.uk/products/business-loans

8. Virgin StartUp

Virgin StartUp provides loans and mentorship aimed at newly launched businesses. They appeal to entrepreneurs seeking guidance and initial capital without excessive interest burdens.

Loan Details

• Min Amount: £500
• Max Amount: £25,000
• Min APR: 6%
• Max APR: 6%
• Loan Duration: Unknown⌛

Services & Industries

• Finance Types: Startup Loans
• Industries: Startups

Pros

• Supportive of startups
• Mentoring available

Cons

• Limited to startups

Sources: https://www.iwoca.co.uk/lenders/virgin-money-business-loans

9. HSBC

HSBC offers commercial loans that emphasize flexible repayment schedules. They are fit for enterprises looking for growth with services that do not include initial charges.

Loan Details

• Min Amount: £25,000
• Max Amount: £0
• Min APR: 5.8%
• Max APR: 5.8%
• Loan Duration: 1–10 years⌛

Services & Industries

• Finance Types: Flexible Business Loans
• Industries: Various sectors

Pros

• No arrangement fees
• Deferred payment option

Cons

• Limited higher loan amounts

Sources: https://www.iwoca.co.uk/small-business-loans/hsbc

10. Funding Circle

Funding Circle provides business loans with a swift decision process and competitive rates. It's ideal for businesses interested in efficient lending without lengthy procedures.

Loan Details

• Min Amount: £1,000
• Max Amount: £750,000
• Min APR: 6.9%
• Max APR: 12%
• Loan Duration: Unknown⌛

Services & Industries

• Finance Types: Business Loans
• Industries: Various industries

Pros

• Fast approval times
• Competitive rates

Cons

• May not suit high-risk businesses

Sources: https://www.fundingcircle.co.uk

How to choose

Determining the right loan for your needs requires an assessment of loan size, APR, and eligibility against your budget. Carefully evaluate the speed of funding against the flexibility you need in lender terms. Understanding repayment structures and their alignment with your cash flow will aid in making an informed decision. Examine lender criteria, including fees and early repayment terms. Finally, match your loan requirements with providers offering the best fit while remaining cautious about changes in pricing and conditions.

Conclusion

Choosing the right loan provider involves matching your financial needs with the provider type, whether it's a bank, a broker, or a specialist lender. Funding Agent is a versatile choice for SMEs looking for easy comparisons. Banks may be preferable for those seeking stability and established trust, while brokers and specialist lenders might offer more flexibility for niche needs. Verify all terms and costs with lenders directly to avoid surprises. Different offerings suit distinct situations—careful selection is key.