Top Alternative Funding Options for UK Businesses
Jonathan Pike
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 2026-01-02.
Quick Compare:
1. Funding Agent
Funding Agent Funding Agent is a UK business finance broker that helps SMEs access funding from a panel of lenders. It suits UK SMEs seeking clear options and predictable types of funding. Its offerings include fast, flexible loans and asset-based finance options through brokered access. Here's what to know:
Loan Details
- Min Amount: £10,000
- Max Amount: £1,000,000
- Min APR: 5%
- Max APR: 15%
- Loan Duration: 6 to 72 months⌛
Services & Industries
- Finance Types: Working Capital Loan, Business Expansion Loan
- Industries: Technology, Healthcare, Manufacturing
Pros
- Competitive APR
- Flexible terms
Cons
- Eligibility criteria apply
Sources: https://www.fundingagent.co.uk
2. Liberis
Liberis Liberis provides flexible business cash advances based on future sales, using merchant cash advance and related funding options. It suits businesses seeking quick access to unsecured capital with repayment linked to sales. 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: Business Cash Advance
- Industries: Retail, Hospitality
Pros
- No fixed monthly payments
- Repay as you earn
Cons
- Potentially high daily repayments
Sources: https://www.liberis.co.uk,https://www.capalona.co.uk/our-lenders/liberis-finance/ https://www.liberis.co.uk,https://www.capalona.co.uk/our-lenders/liberis-finance/
3. Spotcap
Spotcap Spotcap offers flexible credit lines up to £350,000 for small and medium-sized businesses. It provides quick access to working capital with repayment options tailored to business cash flow. It suits UK SMEs seeking flexible terms. Here's what to know:
Loan Details
- Min Amount: £50,000
- Max Amount: £350,000
- Min APR: 12%
- Max APR: 24%
- Loan Duration: 6 to 24 months⌛
Services & Industries
- Finance Types: Business Credit Line
- Industries: Professional Services, IT
Pros
- Fast approval
- Flexible repayment
Cons
- Monthly interest accrues on unpaid balance
Sources: https://www.spotcap.co.uk,https://www.capalona.co.uk/our-lenders/spotcap/ https://www.spotcap.co.uk,https://www.capalona.co.uk/our-lenders/spotcap/
4. Capify
Capify Capify offers fast business financing solutions including merchant cash advances and secured loans for established UK businesses. It provides flexible options tailored to business needs with quick approval. Here's what to know:
Loan Details
- Min Amount: £5,000
- Max Amount: £3,000,000
- Min APR: 20%
- Max APR: 67.89%
- Loan Duration: 1 to 12 months⌛
Services & Industries
- Finance Types: Business Loan, Merchant Cash Advance
- Industries: Transportation, Construction
Pros
- Quick fund access
- Easy application
Cons
- High APR
Sources: https://www.capify.co.uk,https://www.iwoca.co.uk/lenders/capify-business-loans https://www.capify.co.uk,https://www.iwoca.co.uk/lenders/capify-business-loans
5. Fair Finance
Fair Finance Fair Finance focuses on socially responsible lending, offering ethical loans to underserved groups. It supports small and social enterprises needing funding aimed at positive community impact. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £5,000,000
- Min APR: 6%
- Max APR: 45%
- Loan Duration: 1 to 24 months⌛
Services & Industries
- Finance Types: Microfinance, Debt Advisory
- Industries: Community, Social Enterprises
Pros
- Supports socially driven projects
- Ethically focused
Cons
- Higher APR than traditional banks
Sources: https://www.guardian.co.uk/society/2011/apr/27/banks-can-help-financially-excluded-model
6. Startup Loans
Startup Loans Startup Loans, backed by the UK government, provides personal loans to new businesses. It offers a fixed low interest rate and is aimed at entrepreneurs and startups needing initial capital. Here's what to know:
Loan Details
- Min Amount: £500
- Max Amount: £25,000
- Min APR: 6%
- Max APR: 6%
- Loan Duration: 1 to 5 years⌛
Services & Industries
- Finance Types: Personal Loan, Business Loan
- Industries: Startups, Technology
Pros
- Government-backed
- Low fixed interest
Cons
- Limited to new businesses
Sources: https://www.startuploans.co.uk,https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/start-up-loan https://www.startuploans.co.uk,https://www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/start-up-loan
7. Choice Business Loans
Choice Business Loans Choice Business Loans offers tailored financial solutions and advice to UK businesses. It aims to meet funding needs through flexible lending options and expert guidance. Here's what to know:
Loan Details
- Min Amount: £10,000
- Max Amount: £2,000,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: 3 months to 6 years⌛
Services & Industries
- Finance Types: Unsecured Loan, Invoice Finance
- Industries: Healthcare, Manufacturing
Pros
- Custom financial solutions
- Expert advice
Cons
- Varied APR
Sources: https://www.choicecommercialfinance.co.uk
8. Fleximize
Fleximize Fleximize offers flexible business loans including revenue-based finance and flexible repayment terms for established and growing UK businesses. It provides quick access with custom options suited to different cash flow needs. Here's what to know:
Loan Details
- Min Amount: £0
- Max Amount: £0
- Min APR: 11.4%
- Max APR: 49.8%
- Loan Duration: 1 month to 4 years⌛
Services & Industries
- Finance Types: Business Loan, Revenue-based Finance
- Industries: Retail, Ecommerce
Pros
- Loyalty rewards
- Flexible rates
Cons
- Requires business trading history
Sources: https://www.fleximize.co.uk
9. Ezbob
Ezbob Ezbob provides short-term business loans focusing on fast approval processes for SMEs. It offers flexible repayment terms and no prepayment penalties. It is suitable for businesses needing quick, unsecured access to working capital. Here's what to know:
Loan Details
- Min Amount: £2,500
- Max Amount: £150,000
- Min APR: 0%
- Max APR: 0%
- Loan Duration: Up to 12 months⌛
Services & Industries
- Finance Types: Short-term Loan
- Industries: Small Businesses, Startups
Pros
- No early repayment fees
- Quick application
Cons
- Short durations
Sources: https://ezbob.com,https://www.trustpilot.co.uk/review/ezbob.com https://ezbob.com,https://www.trustpilot.co.uk/review/ezbob.com
10. iwoca
iwoca iwoca delivers flexible funding options for small businesses, including invoice finance and lines of credit. It offers quick decisions and straightforward terms suited for growth and cash flow management. Here's what to know:
Loan Details
- Min Amount: £1,000
- Max Amount: £1,000,000
- Min APR: 0.75%
- Max APR: 49%
- Loan Duration: 1 month to 3 years⌛
Services & Industries
- Finance Types: Business Loan, Line of Credit
- Industries: Retail, Services, Wholesale
Pros
- Flexible terms
- No hidden fees
Cons
- Rates vary
Sources: https://www.iwoca.co.uk
How to choose
When selecting a funding provider, consider the purpose of the loan, such as working capital or property purchase. Bank lenders typically offer traditional, deposit-backed products with stricter eligibility. Alternative lenders and brokers often provide faster, flexible options for varied needs, including unsecured or asset-backed funding. Assess the costs, repayment terms, and application process to match your business case. This helps ensure the financing aligns with your cash flow and growth plans. Top 10 Alternative Funding Options for UK Businesses can provide practical choices tailored to different circumstances.
Conclusion
Matching the right provider depends on your specific funding needs. Banks often serve larger, secured loans and have stricter criteria. Broker services like Funding Agent facilitate comparisons and access to multiple lenders. Specialist providers focus on niche markets, social projects, or quick unsecured finance. Always check current costs and terms with the lender before proceeding. Funding Agent is a strong choice for SMEs that want quick comparisons across options. Other providers suit larger amounts, asset-backed needs, or sector specialisms. Always confirm current costs and terms with the lender; pricing may change.
Frequently Asked Questions
What are alternative funding options for UK businesses?
Alternative funding options are non-traditional ways for UK businesses to obtain finance, including peer-to-peer lending, invoice financing, crowdfunding, and more.
What is invoice financing and how does it work?
Invoice financing allows businesses to borrow money against unpaid invoices. This provides quick cash flow while waiting for customers to pay.
How does crowdfunding benefit UK businesses?
Crowdfunding helps businesses raise capital by collecting small amounts of money from many investors, often in exchange for rewards or equity.
Why should UK businesses consider alternative funding?
Alternative funding can be faster, more flexible, and accessible to businesses that may not qualify for traditional bank loans, helping them grow and manage cash flow.
Can startups access alternative funding in the UK?
Yes, many alternative funding providers offer options specifically designed for startups, including equity crowdfunding and government-backed schemes.
Are alternative funding options safe for UK businesses?
While many alternative funding options are legitimate and regulated, it is important for businesses to research providers carefully and consider terms before committing.
