If you are seeking a business loan in the UK, there are many lenders who might be able to assist you, from well-known high street banks to smaller, niche lenders that specialise in business lending.
In this article, we look at what some of these specialist lenders might be able to offer. This is not intended to be an endorsement of these particular lenders, and it may be the case that other lending products are more appropriate for your individual circumstances. Here at Funding Bay, we have access to around 250 lenders who offer secured loans, unsecured loans, merchant cash advances, revolving credit facilities, bridging loans and other products.
Funding Circle
Funding Circle is one of the largest online small business loans providers. Its products include business loans of between £10,000 and £500,000 which are repaid in fixed instalments over terms of two years, or longer. There are no early repayment charges.
Funding Circle can lend to all types of businesses but specialises in lending to smaller businesses and to self-employed individuals who are sole traders or in partnership arrangements.
Nucleus Commercial Finance
Nucleus’ core product is a flexible small business loan where you can borrow anything between £3,000 and £50 million. The usual repayment term is somewhere between three months and seven years, and Nucleus offers both secured and unsecured loans. Again, there are no penalties for repaying the loan early.
Nucleus also offers a variety of other products, including:
- Loans under the Recovery Loan Scheme for businesses affected by Covid-19
- Short-term Business Growth loans
- Invoice finance
- A variety of lending solutions secured on business assets
- Funding for construction projects
FIBR
FIBR styles itself as ‘the digital bank for business owners. It only lends to limited companies who have been trading for at least one year, but its wide-ranging offering includes:
- Flexible lines of credit for between £10,000 and £500,000, repaid over 24 months
- Business loans from £50,000 to £500,000, with terms of up to 60 months
- Property loans of between £500,000 and £4 million to fund property development projects
Fleximize
Fleximize has won the Best Business Finance Provider title at the British Bank Awards on two occasions.
Its core Flexiloan product allows businesses that have been trading for 12 months or more to borrow between £5,000 and £500,000 over a term of one to four years.
It also offers a Flexiloan Lite for those who have been trading for between six and 12 months. Again, you can borrow up to £500,000, but the repayment term is shorter (three to 12 months) and the interest rate may be higher than for the Flexi loan.
Fleximize also supports businesses via its Knowledge Hub, where business owners can access business advice on matters such as law, finance, tax and employment, creative strategy and marketing. Its Member Marketplace allows customers to access discounts on various business services, such as legal advice or PA services.
Market Finance
Market Finance has four main offerings for business customers:
- Business loans of up to £350,000 via the Recovery Loan Scheme. These loans are repaid over four, five or six years, and the repayments for the first six months cover interest only. Unlike many business loans, the RLS does not require a personal guarantee from the directors if you are borrowing less than £250,000
- The Flex Loan – a flexible line of credit for up to £100,000
- Invoice finance facilities, where you have the option of paying a fixed monthly fee for the facility, as well as the traditional method of paying a small percentage of each invoice as the lender’s fee
- Embedded Finance – a scheme which allows you to provide your business customers with credit and payment terms at checkout stage
Iwoca
Iwoca’s Flexi-Loans allow you to borrow between £1,000 and £200,000 over a 12-month period. There are no early repayment charges.
Their Revenue Based Loan is a merchant cash advance facility where you can borrow up to £50,000, or twice your monthly revenue, whichever is lower.
The company also offers access to the RLS, where you can borrow up to £750,000, to be repaid over a term of up to five years.
Their loans are available to sole traders and partnerships as well as limited companies.
If you are wondering what could be your best lender option, try our business loan calculator!
