Top 10 Business Loans

The best business loans in the UK come from both high-street banks and specialist lenders. Among the ten providers we verified for 2026, big-bank representative APRs run from 9.94% (TSB) to 15.73% (NatWest), Funding Circle quotes from 6.9% per year interest, and fast lenders such as iwoca fund within hours. This guide compares all ten on rates, eligibility, speed and fit.

Best UK Business Loan Providers 2026

All ten providers below were verified against their own published terms in 2026. The banks publish representative APRs; Funding Circle publishes an interest rate; iwoca prices per 30 days; and Capify, Liberis and other advance products charge factor-rate fees with no APR at all – so compare total repayable, not headline numbers.

Funding Circle lends £10,000 to £750,000 over 6 months to 6 years, from 6.9% per year – an interest rate, with a one-off completion fee added on standard loans. Decisions arrive in as little as an hour, funds typically within 48 hours, and there is no fee to repay early. For most established SMEs it is the strongest non-bank starting point.

TSB’s fixed-rate business loan covers £1,000 to £1 million over 1–10 years at a 9.94% representative APR – currently the cheapest headline rate among the big banks. A £250 arrangement fee applies, and a base-rate-linked variable loan handles amounts above £25,001 on terms up to 25 years. Read our full TSB business loans review.

HSBC’s small business loan runs £1,000 to £25,000 over 1–10 years at 11.3% representative APR under £10,000, dropping to 8.6% for £10,000–£25,000 – the cheapest verified bank rate at that size. There is no arrangement fee and no requirement to hold an HSBC account. Larger amounts move to its Flexible Business Loan. Full detail in our HSBC review.

Barclays prices its unsecured lending by band: 11.2% representative APR overall, ranging from 8.5% on £15,000–£25,000 down to 14.9% on the smallest £1,000–£5,000 loans, over 1–10 years. Unsecured lending stretches to £100,000, early repayment is free, and some borrowers can take up to 6 months’ repayment holiday at the start. See our Barclays review.

Santander’s Business Loan covers £1,000 to £50,000 over 1–7 years at 11.2% representative APR – marginally under HSBC’s headline rate – with no arrangement or setup fees and free overpayments. The catch: a Santander business current account is mandatory, and weaker profiles can be quoted up to 29.9%. Full detail in our Santander review.

NatWest lends £1,000 to £100,000 unsecured over 1–7 years at a 15.73% representative APR – the highest big-bank headline we verified, offset by zero arrangement and zero early repayment fees. Above £25,001 its fixed and variable loans run to 25 years and £10 million. See our NatWest review.

iwoca’s Flexi-Loan pre-approves £1,000 to £1 million; you draw what you need and pay interest only on the drawn balance, from 1.5% per 30 days, with no early repayment fees. Approval takes up to 24 hours and funds typically land within hours. Limited companies and LLPs only – sole traders are excluded.

Capify offers unsecured loans of £10,000 to £3 million (3–12 months, repaid in small regular instalments) plus a merchant cash advance, and accepts sole traders, partnerships and impaired credit. Pricing is a risk-based factor rate with no published figures – its disclosed worked examples equate to 47.9–67.89% APR, so read our Capify review before committing.

Liberis advances £1,000 to £500,000 as revenue-based finance – technically a receivables purchase, not a loan – repaid through an agreed slice of your card takings, so quiet weeks cost less. Pricing is a single fixed fee with no published factor rate, and much of Liberis’s distribution runs through payment platforms. See our Liberis review.

Think Business Loans is a broker, not a lender: one application is matched against 200+ lenders using its iFunds platform, which suits complex cases, declined applications and borrowers who want the market swept without multiple hard credit searches. It is FCA-regulated and NACFB-member. Rates depend entirely on the matched lender – see our Think Business Loans review.

How to Choose the Right Business Loan

Choose a bank if you have 2+ years of accounts, a clean credit history, and can wait 1–4 weeks – TSB (9.94% APR) and HSBC (8.6% over £10K) lead on price. Choose a specialist lender (Funding Circle, iwoca, Capify) if you need speed or your bank has declined you. Use a broker (Think Business Loans) if your case is complex.

The right lender depends on five factors: how quickly you need funds, your credit profile, whether you have security to offer, how long you’ve been trading, and your annual revenue. Fast lenders (iwoca, Capify, Liberis) approve within 24 hours but charge significantly higher rates. Banks charge less but require stronger financials and take weeks to decide.

For most established SMEs (2+ years trading, £100K+ turnover, clean credit), Funding Circle offers the best combination of competitive rates and fast decision-making outside of the high street. For businesses with irregular cash flow or card-based revenue, Liberis’s revenue-based model – where repayments flex with your sales – can be more suitable than fixed monthly instalments. If you have property to pledge, secured lending is cheaper still.

Business Loan Eligibility: What Lenders Look For

Most UK business loan providers require at minimum: 6–12 months trading history, £50K+ annual turnover, and a UK-registered business. High-street banks typically require 2+ years of filed accounts and a personal credit score above 650. Alternative lenders accept newer businesses and impaired credit but charge significantly higher rates to compensate for elevated risk.

Types of Business Loan Available in the UK

The main types of UK business loan are: unsecured term loans (no collateral required, faster but higher rates), secured term loans (use assets as collateral, lower rates), revenue-based finance (repayments tied to sales – no fixed term), and merchant cash advances (advance against card turnover, repaid as a percentage of daily card sales). Invoice finance and asset finance are related products that serve specific cash flow or asset-acquisition needs.

Unsecured business loans are the most common type for SMEs seeking under £250K. No collateral is required, but lenders mitigate risk through personal guarantees and higher interest rates. Most online lenders operate in this space. See our unsecured business loans comparison for the full provider breakdown.

Secured business loans use commercial property, equipment, or other assets as collateral. This allows larger loan amounts (up to £35 million from the lenders we verified), longer terms (up to 40 years), and significantly lower rates. The trade-off: if you default, the lender can seize the asset. Compare providers in our secured business loans guide.

Revenue-based finance (Liberis, and others) is not technically a loan – it’s an advance repaid through a fixed percentage of your daily card or online sales. There is no fixed term, no monthly repayment schedule, and repayments slow automatically when sales dip. The cost is a fixed fee or factor rate (e.g. 1.25× means you repay £1.25 for every £1 advanced) rather than APR.

Business Loan Rates in the UK (2026)

Verified 2026 rates: big-bank representative APRs run from 9.94% (TSB) to 15.73% (NatWest), with HSBC’s 8.6% band on £10,000-£25,000 the cheapest verified bank pricing. Funding Circle quotes from 6.9% per year interest (not APR). Fast alternative lenders cost far more – Capify’s disclosed examples equate to 47.9-67.89% APR.

Most alternative lenders do not advertise rates at all – they quote after assessing your risk profile. The rate you receive depends on: trading history, turnover, credit profile, loan amount, term length, whether you offer security, and sector. The only way to know your actual rate is to apply or use a broker who can give indicative terms without a hard credit check.

Representative APR figures apply to the majority of approved applicants – higher-risk businesses will pay above the representative rate. Watch the pricing basis too: iwoca prices per 30 days, Fleximize per month, and advance products charge fixed fees with no APR. Always compare the total cost of borrowing (principal + all fees + total interest), not just the headline rate.

How to Apply for a Business Loan UK

To apply for a UK business loan you will typically need: 6–12 months of business bank statements, last 2 years of filed accounts (or management accounts for younger businesses), proof of identity and address, and details of the loan purpose. Online lenders process applications in 24–72 hours with Open Banking data access. Banks take 1–4 weeks and require more documentation. Using a broker (Think Business Loans, Swoop) gives access to multiple lenders via a single application.

1. Know your numbers – loan amount needed, what it’s for, how you’ll repay it. Lenders ask for a repayment plan even for short applications.
2. Check your credit profile – both personal (director) and business. A CCJ, default, or missed payment in the last 12 months will limit your options to specialist bad-credit lenders at higher rates.
3. Gather your documents – 6 months of bank statements minimum (12 preferred), Companies House details if limited company, most recent filed accounts or management accounts.
4. Compare lenders or use a broker – comparing directly gives you full control; a broker (Think Business Loans, Swoop, Funding Xchange) submits to multiple lenders at once and finds the best deal without multiple hard credit searches.
5. Review the offer carefully – check APR, total repayable, arrangement fees, early repayment charges, and whether a personal guarantee is required before signing.

Related Business Finance Guides

Explore the full range of business finance options to find the right structure for your business’s needs and stage.

• Business Loan Costs & Rates UK 2026 – understand APR, fees, and total cost of borrowing
• Secured Business Loans UK – use assets to unlock lower rates
• Unsecured Business Loans UK – no collateral required options
• Business Loans for Bad Credit – lenders that accept impaired credit history
• Short-Term Business Loans – 3–18 month working capital solutions
• Best Invoice Factoring Companies – unlock cash from unpaid invoices
• Self-Employed Business Loans UK – borrowing options for sole traders and contractors
• Business Consolidation Loans UK – combine multiple debts into one repayment
• Liberis Review UK – revenue-based financing for card-processing businesses

Clara Wenslow

Finance & Business Services Editor

Clara analyses SME finance and procurement markets, covering business loans, invoice finance, payroll, and related B2B services. She ensures each comparison and guide is transparent and data-driven.

Reviewed by

Sarah Mitchell

B2B Commerce & Finance Reviewer