Best Working Capital Loan Lenders in the UK

Jonathan Pike
December 10, 2025
Category
Category
Awards
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
2Funding CircleFunding Circle is a leading platform for small business loans offering quick applications and competitive rates in the UK.£0–£750,000; 6.9%–14.9% APR; Up to 5 years
3iwocaiwoca offers flexible business loans for small to medium enterprises in the UK, with quick approval processes and options for secured or unsecured lending.£1,000–£1,000,000; 0%–0% APR; 1 to 24 months
4Approved Finance GroupApproved Finance Group provides tailored financial solutions across various industries, often specialising in asset-backed or unsecured loans.£0–£0; 0%–0% APR; Unknown
5BizcapBizcap offers fast, flexible loans for small businesses, with options including unsecured and overdraft facilities, often with quick turnaround times.£5,000–£1,000,000; 0%–0% APR; Up to 36 months
6NovunaNovuna provides customised business loans focusing on cash flow support and growth. Its offerings include both secured and unsecured options.£0–£0; 0%–0% APR; Unknown
7Lloyds BankLloyds Bank offers a wide range of business loans with support for different sectors. Flexibility and industry expertise are key features.£0–£0; 0%–0% APR; Unknown
8Simply BusinessSimply Business is primarily an insurance provider but also offers resources and access to funding options for UK small businesses.£0–£0; 11.8%–0% APR; Varies
9NatWestNatWest offers flexible funding solutions including small business loans and venture finance, supporting various business types across the UK.£1,000–£50,000; 0%–0% APR; 1 to 10 years
10HSBCHSBC provides diverse business loan options with competitive rates, often supporting expansion and cash flow management activities.£1,000–£50,000; 5.8%–0% APR; 1 to 10 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 offers quick turnaround and options for secured or unsecured loans suitable for franchise operators and small businesses. 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. Funding Circle

Funding Circle Funding Circle is a prominent platform supporting small business loans in the UK. It provides quick application processes and competitive rates, suitable for franchise owners and businesses seeking straightforward funding options. Here's what to know:

Loan Details

  • Min Amount: £0
  • Max Amount: £750,000
  • Min APR: 6.9%
  • Max APR: 14.9%
  • Loan Duration: Up to 5 years⌛

Services & Industries

  • Finance Types: Small Business Loan, Unsecured Loan
  • Industries: General Small Businesses

Pros

  • Quick decision making
  • No early repayment fees

Cons

  • Higher APR for higher-risk applicants

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

3. iwoca

iwoca iwoca delivers flexible business finance options for small to medium enterprises. It offers quick approval times and lending that can be secured or unsecured, suitable for franchise owners and service sector businesses seeking rapid access to capital. 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: Short Term Loan, Working Capital Loan
  • Industries: Retail, Food & Beverage

Pros

  • Flexible repayment
  • Quick processing

Cons

  • High APR for some products

Sources: https://www.iwoca.co.uk/small-business-loans

4. Approved Finance Group

Approved Finance Group Approved Finance Group offers tailored financial solutions often with quick turnaround. It supports businesses requiring secured or unsecured loans and typically works with SMEs needing 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, Invoice Finance
  • Industries: Construction, Manufacturing, Engineering

Pros

  • Wide industry coverage
  • Customized solutions

Cons

  • Terms depend on industry risk

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

5. Bizcap

Bizcap Bizcap provides fast and flexible business loans for SMEs, often including unsecured and line of credit products. It offers quick approval and funding processes suited for franchise operators and small firms needing short-term working capital. Here's what to know:

Loan Details

  • Min Amount: £5,000
  • Max Amount: £1,000,000
  • Min APR: 0%
  • Max APR: 0%
  • Loan Duration: Up to 36 months⌛

Services & Industries

  • Finance Types: Unsecured Loan, Line of Credit
  • Industries: Retail, Services

Pros

  • Fast approval times
  • Flexible terms

Cons

  • Higher interest rates for new businesses

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

6. Novuna

Novuna Novuna offers customised business loans for cash flow and growth, with options that can be secured or unsecured. It aims to support SMEs with flexible repayment solutions and quick access. 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: Secured Loan, Revenue-Based Finance
  • Industries: Wholesale, Distribution

Pros

  • Flexible options
  • Large loan sizes available

Cons

  • Secured on assets

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

How to choose

Matching the right lender to your needs involves understanding the type of funding, speed, and flexibility. Bank loans typically offer lower interest rates but may have stricter criteria. Brokered services and specialist providers can offer faster approval and tailored options. Evaluate your funding purpose and repayment capacity before selecting a provider. Consider the specific features that align with your business growth plans and cash flow situation. This can help you find the most appropriate loan for your circumstances, especially among the 10 best options for working capital in the UK.

Conclusion

Matching provider types to your needs depends on your specific purpose and circumstances. Bank lenders may suit those seeking low rates and long-term support. Brokers and specialist lenders often provide quicker access and customised solutions. Evaluating each option based on your business profile and funding goals is essential. 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.

Frequently Asked Questions

What is a working capital loan?

A working capital loan is a type of financing that helps small businesses cover everyday operational expenses such as salaries, rent, and inventory.

What are the typical interest rates for working capital loans?

Interest rates can vary widely, typically ranging from 5% to 30%, depending on the lender, loan term, and your business profile.

Are there any fees associated with working capital loans?

Yes, fees can include origination fees, late payment fees, and early repayment penalties. Always check the lender’s terms carefully.

How do I qualify for a working capital loan in the UK?

Qualification usually depends on your business credit score, time in business, revenue, and sometimes collateral. Requirements vary by lender.

How quickly can I get a working capital loan?

Many UK lenders offer quick approval processes, with some providing funds within 24 to 72 hours after application approval.

Can startups apply for working capital loans?

Some lenders accept startups, but many require a minimum time in business, usually at least six months to one year.

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