August 8, 2025

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Top 13 Short-Term Business Loan Providers in the UK (2025 Comparison Guide)

Compare the top 13 short-term business loan providers in the UK for 2025. See interest rates, loan terms, funding speeds, eligibility criteria, and reviews to find the best fit for your business.

Jesse Spence

Finance content writer / Market researcher

Short-term business loans are a vital tool for UK SMEs in 2025. Whether you are covering a temporary cash flow gap, funding urgent equipment purchases, or seizing a growth opportunity, the right loan can make the difference between stalling and scaling. In the UK, interest rates for small business loans typically range from 6% to 20% APR, with repayment terms from a few months to two years. This guide compares the top 13 providers, including banks, alternative lenders, and merchant cash advance specialists, so you can choose the best fit for your needs. Learn more about which financing is best for short-term business needs before applying.

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UK Short-Term Loan Providers Comparison

Lender	Product / Type	Typical APR or Cost	Loan Amounts	Terms	Speed	Eligibility Highlights
Barclays Business Loan	Bank term loan	8.9% fixed representative	£1,000 - £25,000, up to £100,000 for existing customers	12 months - 10 years	Instant quote, decision within days, funds in 48 hours after signing	UK sole traders, partnerships, limited companies, charities; startups with a viable plan
Metro Bank Business Loan	Bank term loan	9.6% fixed to £25k	£2,000 - £25,000 unsecured; higher with collateral	1 - 5 years	In-branch application, funds within 48 hours of approval	Typically £2m annual turnover; UK based
TSB Business Loan	Bank term loan	9.9% fixed representative	£1,000 - £25,000 unsecured	1 - 10 years	Funds within 48 hours of approval	Any UK based business; no turnover minimum stated
Virgin Money Business Loan	Bank term loan	10.2% fixed to £25k	Up to £25,000 unsecured	1 - 10 years	Online application about 10 minutes, decision in 48 hours	18+ months trading; £5m turnover minimum
YouLend	Merchant cash advance	Repay via percentage of card sales	£3,000 - £10,000,000	Flexible	Decision within 1 day	3+ months trading; £1,500+ monthly card revenue
Fleximize	Short term business loan	From 1.5% per month	£5,000 - £250,000	1 - 24 months	Approval in 24 - 48 hours	UK LTDs or LLPs trading 6+ months; £5k+ monthly turnover
Funding Agent	Aggregator and matching service	Varies by lender	Varies by lender	Varies by lender	Potential offers within 24 hours	Wide range, from startups to established SMEs
iwoca	Short term business loan	From 2% per month	Up to £500,000	1 - 24 months	Decision in hours; same day funding	12+ months trading; £10k+ annual turnover
Funding Circle	SME term loan	From 7.9%	£10,000 - £500,000	6 months - 7 years	Application in minutes; funding in days	UK LTDs with 2+ years trading
Capify	Loan and merchant cash advance	Varies by product	£5,000 - £500,000	3 - 12 months for MCA; longer for loans	Often within 48 hours	SMEs; specifics vary
Esme Loans	SME loan	From 4.9%	£10,000 - £250,000	1 - 5 years	Fully digital; fast decisions	SMEs; specifics vary
365 Business Finance	Merchant cash advance	Repay via percentage of card sales	£5,000 - £200,000	Flexible	Approval and funding within days	Card taking businesses
Liberis	Revenue based finance	Revenue share model	£2,500 - £300,000	Flexible	Approval in 48 hours	Card taking businesses

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Barclays Business Loan

APR: 8.9% fixed (representative)
Loan Amounts: £1,000–£25,000 (up to £100,000 for existing customers)
Terms: 12 months–10 years
Funding Speed: Instant quote, decision within days, funds in 48 hours after signing
Eligibility: UK sole traders, partnerships, limited companies, charities; startups welcome with a viable business plan
Trustpilot: 1.8/5

Metro Bank Business Loan

APR: 9.6% fixed (up to £25k)
Loan Amounts: £2,000–£25,000 unsecured; higher with collateral
Terms: 1–5 years
Funding Speed: In-branch application, funds within 48 hours of approval
Eligibility: Typically requires £2m annual turnover; UK-based businesses
Trustpilot: 1.9/5

TSB Business Loan

APR: 9.9% fixed (representative)
Loan Amounts: £1,000–£25,000 unsecured
Terms: 1–10 years
Funding Speed: Online, phone, or in-branch application; funds within 48 hours of approval
Eligibility: Any UK-based business; no turnover minimum stated
Trustpilot: 4.3/5

Virgin Money Business Loan

APR: 10.2% fixed (up to £25k unsecured)
Loan Amounts: Up to £25,000 unsecured
Terms: 1–10 years
Funding Speed: Online application in ~10 minutes, decision in 48 hours
Eligibility: UK limited companies trading for at least 18 months, £5m turnover minimum
Trustpilot: 2.6/5

YouLend (Merchant Cash Advance)

Model: Merchant Cash Advance – repay via % of card sales (learn more about MCA loans)
Amounts: £3,000–£10m
Funding Speed: Decision within 1 day; high approval rate
Eligibility: 3+ months trading, £1,500+ monthly card revenue
Trustpilot: 4.8/5

Fleximize Business Loan

Interest: From 1.5% per month
Loan Amounts: £5,000–£250,000
Terms: 1–24 months
Funding Speed: Approval in 24–48 hours
Eligibility: UK limited companies/LLPs trading 6+ months, £5k+ monthly turnover
Trustpilot: 4.8/5

Funding Agent

Model: Loan comparison and matching service
Benefits: Access to multiple UK lenders with one application (apply now)
Funding Speed: Fast matching, potential offers within 24 hours
Eligibility: Wide range; from startups to established SMEs
Tools: Use the business loan calculator to estimate repayments

Iwoca

APR: From 2% per month
Loan Amounts: Up to £500,000
Terms: 1–24 months
Funding Speed: Decision in hours, same-day funding
Eligibility: SMEs trading 12+ months, £10k+ turnover
Trustpilot: 4.7/5

Funding Circle

APR: From 7.9%
Loan Amounts: £10,000–£500,000
Terms: 6 months–7 years
Funding Speed: Application in minutes, funding in days
Eligibility: UK limited companies with 2+ years trading
Trustpilot: 4.6/5

Capify

Model: Business loan and MCA options
Amounts: £5,000–£500,000
Terms: 3–12 months (MCA) or longer for loans
Funding Speed: Often within 48 hours
Trustpilot: 4.6/5

Esme Loans

APR: From 4.9%
Loan Amounts: £10,000–£250,000
Terms: 1–5 years
Funding Speed: Fully digital, fast decisions
Trustpilot: 4.5/5

365 Business Finance

Model: Merchant Cash Advance
Amounts: £5,000–£200,000
Funding Speed: Approval and funding within days
Trustpilot: 4.8/5

Liberis

Model: Revenue-based finance
Amounts: £2,500–£300,000
Funding Speed: Approval in 48 hours
Trustpilot: 4.7/5

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Annual SME Lending Growth in the UK (2020-2024)

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Final Thoughts – Choosing the Right Lender for Your Needs

Picking the right short-term business loan provider in the UK depends on your priorities. If speed matters most, lenders like iwoca and YouLend stand out. If you want the security of a major bank, Barclays or TSB might be the way to go. Merchant cash advances from providers like 365 Business Finance and Liberis offer flexibility for card-based businesses. Aggregators like Funding Agent can help you compare multiple offers with a single application, saving time and effort. You can also explore our best unsecured loan lenders in the UK list for more options.

Explore your options with Funding Agent’s loan matching tool today.

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Short-Term Business Loans FAQ

Get instant answers to the most common questions about short-term business financing. Can't find what you're looking for? Contact our funding experts for personalized advice.

Generally, loans with repayment terms under 24 months. Some providers offer as short as one month, while others go up to two years.

iwoca and YouLend are among the fastest, often providing decisions in hours and same-day funding.

MCAs suit businesses with high card turnover and seasonal income. They offer flexible repayments but can be more expensive than fixed-rate loans.

Yes. Some lenders, including Barclays and Funding Agent's partners, work with startups if they have a strong business plan.

Look at APR, total repayable amount, fees, funding speed, and eligibility. Aggregators like Funding Agent simplify this by showing offers from multiple lenders at once.

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