Top Business Loan Lenders for Small Businesses in the 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 2025-10-09.
1. Funding Agent
Funding Agent Funding Agent offers unsecured business loans suitable for small firms seeking quick access to capital. Its focus is on simple, flexible options that can be repaid over various terms. It appeals to SMEs looking for fast decisions and transparent processes. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £500,000
- Min APR: 6.9%
- Max APR: 8.9%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: All
Pros
- Low APR
- No collateral required
Cons
- Limited to UK
Sources: https://www.fundingagent.co.uk/post/top-10-unsecured-business-loans-for-startups-in-the-uk
2. Funding Circle
Funding Circle Funding Circle offers a straightforward online platform for small and medium-sized enterprises seeking growth capital. Its focus is on faster approval and flexible terms with the potential for brokered deals. It suits businesses wanting a streamlined experience. Here's what to know:
Loan Details
- Min Amount: £10,000
- Max Amount: £750,000
- Min APR: 6.9%
- Max APR: 0%
- Loan Duration: Up to 72 months⌛
Services & Industries
- Finance Types: Term Loans
- Industries: All
Pros
- Quick approval
- Competitive rates
Cons
- Higher rates for riskier businesses
Sources: https://www.fundingcircle.co.uk/
3. NatWest
NatWest NatWest provides business loans suitable for small UK companies seeking flexible funding options. It is geared towards SMEs needing working capital or growth finance. Its process involves clear terms and quick assessments. Here's what to know:
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: Standard Business Loans
- Industries: All
Pros
- Reputable bank
- Flexible terms
Cons
- Interest rates can be high
Sources: https://www.iwoca.co.uk/lenders/natwest-business-loan
4. Lloyds Bank
Lloyds Bank Lloyds Bank offers business loans with fixed or variable terms, suitable for small to medium-sized firms seeking predictable repayment plans. Its offerings include secured and unsecured options, often with competitive rates. They are geared towards flexibility and speed in decision making. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £50,000
- Min APR: 11.2%
- Max APR: 0%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Fixed Rate Loans
- Industries: All
Pros
- Fixed APR
Cons
- Limited maximum loan
Sources: https://lloydstsb.co.uk/business/business-loans.html
5. MoneyCo
MoneyCo MoneyCo supplies a broad range of business loan options, often brokered or through direct applications to secured and unsecured lenders. It caters to SMEs seeking flexible funding tools. Its process is designed for quick access and competitive terms. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £15,000,000
- Min APR: 6%
- Max APR: 15%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Comparative Loan Offers
- Industries: All
Pros
- Wide range of options
- Detailed comparison
Cons
- Not a direct lender
Sources: https://www.money.co.uk/business/business-loans
6. NerdWallet
NerdWallet NerdWallet UK offers detailed comparisons of unsecured business loans and financial products. It is useful for small firms seeking clear, quick options. It covers various types of borrowing with emphasis on convenience and transparency. Here's what to know:
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 6%
- Max APR: 15%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: All
Pros
- Comparative analysis
- No security required
Cons
- No direct lending
Sources: http://www.knowyourmoney.co.uk/business-loans/unsecured-loans/
7. British Business Bank
British Business Bank British Business Bank provides various finance options designed to support UK small businesses. It offers standard loans, equity funding, and specialised schemes to help with different growth stages and needs. Known for facilitating access to finance, it serves businesses seeking flexibility. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 0%
- Loan Duration: 1-5 years⌛
Services & Industries
- Finance Types: Debt Finance, Equity Finance
- Industries: All
Pros
- Varied finance options
Cons
- Limited direct application
Sources: https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/start-up-loan
8. Merchant Savvy
Merchant Savvy Merchant Savvy compares unsecured business loans with an average APR of 9.9 percent. It offers options suitable for small firms needing quick access to capital. Its product range covers various loan sizes and terms. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £25,000
- Min APR: 9.9%
- Max APR: 0%
- Loan Duration: 1-10 years⌛
Services & Industries
- Finance Types: Unsecured Loans
- Industries: All
Pros
- Quick approval
Cons
- Limited loan amount
Sources: https://www.merchantsavvy.co.uk/business-loans/unsecured-business-loans/
9. Sorbus Finance
Sorbus Finance Sorbus Finance offers custom business loans suitable for small firms. Its focus is on flexible, secured and unsecured options for varied finance needs. It provides tailored solutions to fit different growth stages. Here's what to know:
Loan Details
- Min Amount: £0
- Max Amount: £1,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Peer-to-Peer Loans
- Industries: All
Pros
- Tailored financing
Cons
- Limited digital platform
Sources: https://sorbusfinance.co.uk/business-loans-for-small-businesses/
10. GoCompare
GoCompare GoCompare provides business owners with tools to compare finance products, including various types of loans. Its platform enables quick evaluation of options to meet different needs and budgets. It is suitable for SMEs seeking transparent, straightforward comparisons. Here's what to know:
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Unknown⌛
Services & Industries
- Finance Types: Loan Comparisons
- Industries: All
Pros
- Comprehensive comparisons
Cons
- No direct lending
Sources: https://www.gocompare.com/loans/business/
How to choose
Match loan size and APR to your budget, check eligibility, and balance speed against flexibility. Consider how repayments fit your franchise cash flow and seasonality. Review lender criteria, fees, and early repayment terms before applying. For small businesses in need of quick, straightforward options, direct online lenders or comparison platforms often offer faster decisions. For more complex, asset-backed, or larger funding needs, brokers or specialised lenders can provide tailored solutions. Evaluate your priorities carefully to select the right provider for your business stage and objectives.
Conclusion
Matching the right provider to your needs involves understanding whether you need a bank, an online lender, or a broker. Banks typically offer larger, more traditional loans with clear terms. Online platforms and brokers can provide faster access and more tailored options, especially for smaller amounts or specialised finance. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Other providers suit larger amounts, asset-backed needs, or sector specialisms. Always confirm current costs and terms with the lender; pricing may change.
