Best Unsecured Business Loan Lenders for UK SMEs

Jonathan Pike
December 10, 2025
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Category
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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:

1Funding AgentFunding Agent is a UK business finance broker that helps SMEs access funding from a panel of lenders.£10,000–£1,000,000; 5%–15% APR; 6 to 72 months
2BarclaysBarclays offers a range of business financing options including secured loans with flexible terms and competitive rates.£25,001–£3,000,000; 11.2%–14.9% APR; 1 to 25 years
3Lloyds Bank Commercial FinanceLloyds Bank provides business loans with a focus on growth and sustainability, offering flexible terms and support.£1,000–£50,000; 11.2%–11.2% APR; 1 to 5 years
4HSBC Business Funding SolutionsHSBC offers a variety of small business loans with competitive fixed rates to help manage business growth effectively.£1,000–£25,000; 5.8%–7.1% APR; 1 to 10 years
5FleximizeFleximize provides tailored business loans with a flexible approach and rewards for loyal customers.£0–£25,000; 9.6%–11.3% APR; 1 to 5 years
6Clydesdale Enterprise FinanceClydesdale Bank offers growth financing and structured lending solutions for businesses looking to expand.£0–£0; 6%–6% APR; 1 to 5 years
7Capital on TapCapital on Tap facilitates quick access to funds with competitive rates and rewards for small businesses.£0–£250,000; 13.86%–15.22% APR; Varies
8Virgin StartUp LoanVirgin StartUp offers business loans to new ventures in the UK with a fixed interest rate and support for founders.£500–£25,000; 6%–6% APR; 1 to 5 years
9NatWest Small Business LoanNatWest provides small business loans with competitive rates and flexible repayment options to support growth.£0–£0; 10%–15% APR; 1 to 10 years
10Funding CircleFunding Circle offers fast and affordable business loans for SMEs, focusing on ease and transparency.£10,000–£750,000; 6.9%–14.9% APR; 6 months to 6 years

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 terms. 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. Nucleus Commercial Finance

Nucleus Commercial Finance Nucleus Commercial Finance offers tailored finance solutions for businesses, providing loans based on revenue. It suits UK SMEs seeking clear options and predictable terms. Here's what to know:

Loan Details

  • Min Amount: £3,000
  • Max Amount: £300,000
  • Min APR: 7.5%
  • Max APR: 19%
  • Loan Duration: 3 to 36 months⌛

Services & Industries

  • Finance Types: Revenue-Based Loan, Working Capital Loan
  • Industries: Retail, Construction

Pros

  • Flexible repayment terms

Cons

  • Interest rates vary

Sources: https://nucleusprelaunch.328234838193491-cloud.co.uk/types-of-funding/revenue-based-loans/

3. Iwoca

Iwoca Iwoca provides flexible business loans targeted at SMEs, with options for quick decisions and high borrowing limits. It is suitable for those seeking fast access to working capital or growth funding. Here's what to know:

Loan Details

  • Min Amount: £1,000
  • Max Amount: £1,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 1 to 24 months⌛

Services & Industries

  • Finance Types: Working Capital Loan, Business Loan
  • Industries: General SME

Pros

  • Fast approvals
  • No early repayment penalties

Cons

  • Short loan terms

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

4. Barclays

Barclays Barclays offers a wide range of banking services to support small and large businesses across the UK. It is suitable for businesses seeking flexible options and variety in borrowing products. 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 Loan, Overdraft, Invoice Financing
  • Industries: Agriculture, Healthcare, Technology

Pros

  • Extensive branch network

Cons

  • Stringent eligibility criteria

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

5. Lloyds Bank

Lloyds Bank Lloyds Bank offers a variety of business loans and overdrafts aimed at supporting business growth and sustainability. It is well-suited for established firms looking for dependable funding options. Here's what to know:

Loan Details

  • Min Amount: £1,000
  • Max Amount: £50,000
  • Min APR: 11.2%
  • Max APR: 0%
  • Loan Duration: 1 to 5 years⌛

Services & Industries

  • Finance Types: Fixed Rate Loan, Overdraft
  • Industries: Retail, Manufacturing

Pros

  • Fixed interest rate

Cons

  • Limited loan amount

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

6. NatWest

NatWest NatWest offers a range of business lending options including term loans, overdrafts, and revolving credit for SMEs. It is suitable for firms seeking flexible and accessible funding tailored to business needs. Here's what to know:

Loan Details

  • Min Amount: £1,000
  • Max Amount: £250,000
  • Min APR: 10%
  • Max APR: 15%
  • Loan Duration: 1 to 7 years⌛

Services & Industries

  • Finance Types: Business Loan, Revolving Credit
  • Industries: Retail, Technology

Pros

  • Quick loan processing

Cons

  • Interest rates can be high

Sources: https://www.natwest.com/business/loans-and-finance/small-business-loan.html

7. HSBC

HSBC HSBC provides a range of business loans and asset finance options tailored for companies of all sizes. It supports sectors with growth potential and includes flexible repayment options. 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 Loan, Asset Finance
  • Industries: Real Estate, Technology, Manufacturing

Pros

  • Global reach

Cons

  • Complex application process

Sources: https://www.business.hsbc.uk/en-gb/corporate/campaigns/sectors

8. Love Finance

Love Finance Love Finance offers quick, unsecured business loans aimed at SMEs, with flexible payment structures and fast approval times. It is suitable for urgent funding needs with minimal collateral. Here’s what to know:

Loan Details

  • Min Amount: £0
  • Max Amount: £750,000
  • Min APR: 6.9%
  • Max APR: 0%
  • Loan Duration: Unknown⌛

Services & Industries

  • Finance Types: Unsecured Loan, Business Loan
  • Industries: General SME

Pros

  • Quick funding
  • Flexible terms

Cons

  • Reliance on credit score

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

9. Fleximize

Fleximize Fleximize offers flexible business loans and revolving credit for SMEs. It supports companies needing adaptable funding options with straightforward repayment terms. Here's what to know:

Loan Details

  • Min Amount: £10,000
  • Max Amount: £0
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Unknown⌛

Services & Industries

  • Finance Types: Secured Loan, Unsecured Loan
  • Industries: Retail, Services

Pros

  • Customer-centric approach

Cons

  • Potential collateral required

Sources: https://fleximize.com/business-loans/loan-purposes-and-industries

10. Funding Circle

Funding Circle Funding Circle is a peer-to-peer lending platform focused on providing quick access to finance for SMEs. It is suitable for businesses seeking fast, transparent options for growth or working capital. Here's what to know:

Loan Details

  • Min Amount: £10,000
  • Max Amount: £750,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: 6 to 72 months⌛

Services & Industries

  • Finance Types: Peer-to-Peer Loan, Business Loan
  • Industries: General SME

Pros

  • Fast lending process

Cons

  • Eligibility requirements

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

How to choose

When selecting from the 10 best unsecured business loan lenders for UK SMEs, consider your funding purpose and amount needed. Bank lenders often offer larger sums with structured repayment plans. Brokers and alternative lenders usually provide quicker, more flexible options but may have higher rates. Matching your business needs with lender type ensures suitable terms and conditions. Compare fees, repayment options, and eligibility criteria carefully to find the best fit for your franchise.

Conclusion

Matching the right provider depends on your use case. Bank lenders often suit established firms with larger funding needs. Brokers and alternative lenders may be better for fast or unsecured options. Funding Agent is a strong choice for SMEs that want quick comparisons across multiple options. Always verify current costs and terms with the lender; pricing may change.

Frequently Asked Questions

What is an unsecured business loan?

An unsecured business loan is a type of financing that does not require any collateral. It's based on your business's creditworthiness and ability to repay.

What are the benefits of unsecured business loans for SMEs?

Benefits include no need for collateral, faster approval times, and flexibility in how the funds are used to support business growth or manage cash flow.

Which UK lenders offer the best unsecured business loans for SMEs?

Some leading UK lenders include Funding Circle, iwoca, Liberis, and Barclays, known for competitive rates and SME-focused services.

How can UK SMEs qualify for an unsecured business loan?

UK SMEs can qualify by demonstrating a good business credit score, steady cash flow, and a solid business plan. Lenders typically assess your financial history and repayment capacity.

Are interest rates higher on unsecured loans compared to secured loans?

Generally, interest rates on unsecured loans are higher than secured loans because they carry more risk for the lender.

How quickly can SMEs get approved for unsecured business loans?

Many lenders offer quick approval processes, often within 24 to 72 hours, enabling SMEs to access funds swiftly.

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