Lenders with the Lowest Apr Business 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 2026-01-16.

Quick Compare:

1. Funding Agent

Funding Agent Funding Agent offers an array of business loan options focused on supporting small to medium enterprises. It provides quick access and transparent terms for UK SMEs seeking flexible financing solutions. Here's what to know:

Loan Details

• Min Amount: £5,000
• Max Amount: £500,000
• Min APR: 4.5%
• Max APR: 15%
• Loan Duration: 3-60 months⌛

Services & Industries

• Finance Types: Secured Loans, Unsecured Loans
• Industries: Retail, Manufacturing, Technology

Pros

• Flexible terms
• Competitive rates

Cons

• Strict eligibility criteria

Sources: https://www.fundingagent.co.uk/business-loans

2. NatWest

NatWest NatWest provides small business loans suitable for companies with modest turnover. It supports working capital or growth needs with a variety of repayment options. 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: Fixed-rate loans
• Industries: Hospitality, Construction, Service

Pros

• No arrangement fees
• Flexible repayment terms

Cons

• Higher interest rates for smaller amounts

Sources: https://www.natwest.com/business/loans-and-finance/small-business-loan.html,https://www.iwoca.co.uk/lenders/natwest-business-loan https://www.natwest.com/business/loans-and-finance/small-business-loan.html,https://www.iwoca.co.uk/lenders/natwest-business-loan

3. HSBC

HSBC HSBC offers small business loans suitable for growth or operational financing. It provides fixed and variable options for borrowers prioritising stability or flexibility. Here's what to know:

Loan Details

• Min Amount: £1,000
• Max Amount: £25,000
• Min APR: 5.7%
• Max APR: 18.9%
• Loan Duration: 1-10 years⌛

Services & Industries

• Finance Types: Fixed-rate loans, Variable-rate loans
• Industries: Healthcare, Real Estate, Education

Pros

• No arrangement fees
• Deferral of first payment available

Cons

• Variable rates dependent on base rate

Sources: https://www.business.hsbc.uk/en-gb/products/small-business-loan,https://www.iwoca.co.uk/small-business-loans/hsbc https://www.business.hsbc.uk/en-gb/products/small-business-loan,https://www.iwoca.co.uk/small-business-loans/hsbc

4. Barclays

Barclays Barclays offers business loans with flexible terms suitable for various purposes. It delivers quick decisions and no early repayment fees. Here's what to know:

Loan Details

• Min Amount: £1,000
• Max Amount: £50,000
• Min APR: 11.2%
• Max APR: 14.9%
• Loan Duration: Flexible⌛

Services & Industries

• Finance Types: Fixed-rate loans, Variable-rate loans
• Industries: Agriculture, Manufacturing, Retail

Pros

• Flexible terms
• No early repayment fees

Cons

• High minimum APR

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

5. Lloyds Bank

Lloyds Bank Lloyds Bank provides a range of business loans focused on fixed-rate products. It supports business growth and stability with clear repayment options. Here's what to know:

Loan Details

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

Services & Industries

• Finance Types: Fixed-rate loans
• Industries: Transport, Communications, Finance

Pros

• Transparency in rates
• Support for small businesses

Cons

• Limited flexibility in product types

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

6. Metro Bank

Metro Bank Metro Bank offers business and commercial loans that feature fixed APRs. It helps maintain financial stability and supports growth for UK businesses. Here's what to know:

Loan Details

• Min Amount: £5,000
• Max Amount: £60,000
• Min APR: 9.6%
• Max APR: 9.6%
• Loan Duration: 1-5 years⌛

Services & Industries

• Finance Types: Fixed-rate loans
• Industries: Retail, Food Industry, Hospitality

Pros

• Competitive fixed rates
• Quick application process

Cons

• Limited loan amount flexibility

Sources: https://www.metrobankonline.co.uk/business/borrowing/products/commercial-loans/

7. iwoca

iwoca iwoca offers flexible business loans that are suitable for SMEs seeking quick access to funding. It provides options that may include asset-backed and working capital loans, with a focus on fast approval and customised repayment terms. Here's what to know:

Loan Details

• Min Amount: £1,000
• Max Amount: £500,000
• Min APR: 5%
• Max APR: 15%
• Loan Duration: 1-36 months⌛

Services & Industries

• Finance Types: Asset-backed loans, Working capital loans
• Industries: Technology, Logistics, Media

Pros

• Flexible repayment options
• Fast decision-making

Cons

• Higher APR for short-term loans

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

8. Bank of Scotland

Bank of Scotland Bank of Scotland offers fixed rate commercial loans suitable for various business needs. They support growth and stability with straightforward repayment plans. Here's what to know:

Loan Details

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

Services & Industries

• Finance Types: Fixed-rate loans
• Industries: Healthcare, Retail, Professional Services

Pros

• No hidden fees
• Clear repayment plans

Cons

• Limited high-value loans

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

9. Merchants Savvy

Merchants Savvy Merchants Savvy provides unsecured business loans that cater to small businesses seeking quick funding without collateral. They facilitate flexible borrowing options through various lending partners. Here's what to know:

Loan Details

• Min Amount: £10,000
• Max Amount: £500,000
• Min APR: 10.8%
• Max APR: 22%
• Loan Duration: Flexible⌛

Services & Industries

• Finance Types: Unsecured loans
• Industries: IT Services, Construction, Retail

Pros

• Variety of lending partners
• No collateral needed

Cons

• Higher APR for unsecured loans

Sources: https://www.merchantsavvy.co.uk/business-finance/business-loans/unsecured-business-loans/

10. Simply Business

Simply Business This platform offers a comparison service for small business loans, assisting UK SMEs in finding the most suitable rates and terms from different lenders. It aims to simplify the search process for flexible funding options. Here's what to know:

Loan Details

• Min Amount: £5,000
• Max Amount: £300,000
• Min APR: 6%
• Max APR: 20%
• Loan Duration: Variable⌛

Services & Industries

• Finance Types: Unsecured loans, Secured loans
• Industries: Hospitality, Manufacturing, Retail

Pros

• Comprehensive comparison
• Access to different lenders

Cons

• Varying terms depending on lender

Sources: https://www.simplybusiness.co.uk/knowledge/funding/best-small-business-loans/

How to choose

When selecting a lender for a business loan in the UK with the lowest interest rates, consider your specific needs. Fixed-rate loans suit those who prefer predictable repayments. For fast funding, brokers can help source quick approvals but may include fees. Larger, unsecured loans are often best through banks, while sector-specific or specialised lenders might offer tailored options. Compare costs, eligibility criteria, and repayment flexibility to find the best match for your franchise or business needs.

Conclusion

Matching the right provider depends on your borrowing purpose. Banks are suitable for larger or secured loans. Brokers can facilitate quick access and broader options. Sector specialists may offer tailored products for specific needs. 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.