Securing a business loan can be a crucial step for growth, whether you're expanding operations, investing in equipment, or managing cash flow. With numerous lenders in the UK, finding the best rates and terms can be overwhelming. This guide compares top business loan providers to help you make an informed decision.

High-Street Banks

Traditional banks offer competitive interest rates but often require strong credit and extensive paperwork.

• Barclays Business Loans

  • Loan amount: £1,000 to £100,000 (unsecured), higher for secured loans

  • Interest rates: Competitive fixed rates

  • Repayment term: 1-10 years

  • Best for: Established businesses with strong financials

    
    

• HSBC Small Business Loans

  • Loan amount: £1,000 to £25,000 (unsecured)

  • Interest rates: Fixed and variable options

  • Repayment term: 1-10 years

  • Best for: Businesses looking for flexibility in repayment

    
    

• Lloyds Bank Business Loans

  • Loan amount: £1,000 to £50,000 (unsecured)

  • Interest rates: Personalized based on credit score

  • Repayment term: 1-25 years

  • Best for: Businesses seeking long repayment terms

Online Lenders and Alternative Financing

Fintech lenders provide quick approvals with flexible requirements but may have higher interest rates.

• Funding Circle

  • Loan amount: £10,000 to £500,000

  • Interest rates: From 7.9% APR

  • Repayment term: 6 months to 5 years

  • Best for: Small businesses needing fast funding

• Iwoca

  • Loan amount: £1,000 to £500,000

  • Interest rates: Variable, based on risk assessment

  • Repayment term: Up to 2 years

  • Best for: Short-term financing needs

• Capify

  • Loan amount: £5,000 to £500,000

  • Interest rates: Custom based on business performance

  • Repayment term: Flexible daily or weekly repayments

  • Best for: Businesses with fluctuating cash flow

Peer-to-Peer (P2P) Lending

P2P platforms connect businesses with investors, offering competitive rates with fewer restrictions.

• Funding Options

  • Matches businesses with multiple lenders

  • Loan amount: £1,000 to £10 million

  • Best for: Businesses comparing multiple loan offers quickly

• LendingCrowd

  • Loan amount: £5,000 to £500,000

  • Interest rates: From 5.95% APR

  • Repayment term: 6 months to 5 years

  • Best for: Businesses seeking investor-backed funding

Government and Specialist Loans

The UK government and other financial bodies provide low-interest options for startups and SMEs.

• British Business Bank Start Up Loans

  • Loan amount: £500 to £25,000

  • Interest rate: Fixed 6% APR

  • Repayment term: Up to 5 years

  • Best for: Startups and new businesses

Final Thoughts

The best lender depends on your business size, credit profile, and funding needs. Traditional banks offer stability, while fintech and P2P lenders provide speed and flexibility. Compare interest rates, loan terms, and eligibility to find the right financing partner for your business in 2025.