Maintaining a healthy level of working capital can sometimes be difficult, and you may need to borrow some money to keep your head above water and pay for any unexpected bills or to help you grow your business.
There are a variety of financial products available to businesses, but a business loan is often the most flexible and simple products to use. Below we have looked at what some of the leading lenders could offer you.
The table below gives a quick price comparison of the top UK providers for working capital loans.
Company | Min Loan Amount | Max Loan Amount |
---|---|---|
iwoca | £1,000 | £200,000 |
Funding Circle | £10,000 | £500,000 |
NatWest | £1,000 | £50,000 |
RBS | £1,000 | £50,000 |
HSBC | £1,000 | £25,000 |
Barclays | £1,000 | £100,000 |
Lloyds bank | £1,000 | £500,000 |
TSB | £1,000 | £1 million |
Santander | £25,001 | Not stated |
Bank of Scotland | £1,000 | Not stated |
Clydesdale Bank | £25,000 | £10 million |
Spotcap | £50,000 | £250,000 |
Fleximize | £5,000 | £500,000 |
LendingCrowd | £5,000 | 500000 |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Topics
1. iwoca
Some of the features and benefits of iwoca’s working capital loan.
- Business loans that can be used to increase your cash flow
- Fast and fair decisions
- Loans from £1,000 to £200,000
- Flexible loan
- Repay as soon as you want
- Facility to top up your loan during the term
- Able to get the funds in your bank within hours
- Loans are normally for one month’s revenue
- Start-ups can borrow up to £10,000
- Highly rated on Trustpilot
iwoca is an independent financial provider who specialises in offering services to small businesses They claim to have a streamlined application process and broader lending criteria. Their business loans can be used for a variety of reasons including increasing your working capital and cash flow to support your business growth.
iwoca’s business loans are available to small businesses for £1,000 up to £200,000 but are normally limited to your monthly revenue except for start-ups who can only borrow up to £10,000. The loan is very flexible as it offers the ability to repay the loan at any point or top up the loan up if needed during the term.
2. Funding Circle
Some of the features and benefits of Funding Circle’s working capital loan.
- Fast and affordable finance
- Suitable for increasing cash flow, property refurbishment and equipment purchases
- Unsecured loans
- Loans up to £500,000
- Terms from 6 months to 5 years
- Fixed monthly payments
- Decisions made in as little as 5 hours
- Funds received within days
- No early repayment fees
- Highly rated on Trustpilot
Funding Circle is a lender who brings together investors and borrowers to offer loans to small businesses. They claim to offer fast and affordable finance that can be used for a wide variety of reasons including increasing your working capital to enable you to grow, develop and make purchases.
Funding Circle’s business loans are an unsecured loan offering from £10,000 up to £500,000 on terms from 6 months up to 5 years, which can help you to manage your cash flow better with manageable fixed monthly payments. They have a quick application and decision process which can be done in as little as 5 hours in some cases.
3. NatWest
Some of the features and benefits of NatWest’s working capital loan.
- Fast and simple small business loans
- A flexible loan that can be tailored
- Designed for small businesses
- Fixed interest rates
- No arrangement fees
- Loans from £1,000 to £50,000
- Terms from 1 to 10 years
- No early repayment charges
- Existing customers could get a personalised rate
- Also offers fixed and variable rate loans for higher amounts
NatWest is a financial banking provider offering a wide range of financial products to businesses which includes several loan products. They offer a fast and simple small business loan between £10,000 and £50,000 as well as loans for larger amounts on fixed or variable interest rates.
NatWest’s small business loan is designed to help businesses increase their working capital. Loans are available over 1 to 10 years on fixed interest rates which gives predictable monthly repayments. Loans have no arrangement fees and they will not impose any early repayment fees. Loans are available to existing and new customers, but existing customers may be offered a personalised rate.
4. RBS
Some of the features and benefits of RBS’s working capital loan.
- Small business loan
- Simple and fast loan
- Flexible product
- Available to new and existing customers
- Loans from £1,000 to £50,000
- Fixed interest rates
- No arrangement fees
- Existing customers may be eligible for a personalised rate
- No early repayment fees
- Offer fixed and variable loans for higher amounts
RBS is an established banking provider offering a range of business finance products including business loans. They offer several business loans that are fixed and variable rate loans for varying amounts and reasons. Their small business loan is available to help you increase your working capital.
RBS’ small business loan is available to new and existing customers and is a simple, fast and flexible product that can be tailored to meet your needs. It offers loans from £1,000 to £50,000 over a period from 1 to 10 years on fixed interest rates. The loan offers no arrangement fees and no early repayment fees.
5. HSBC
Some of the features and benefits of HSBC’s working capital loan.
- Small business loan
- Fixed monthly repayments
- Loans from £1,000 to £25,000
- Repayment terms from 1 to 10 years
- Apply online, over the phone or in branch
- Interest can be offset against your tax liabilities
- Facility to defer payments
- No charges for additional repayments
- Available to new and existing customers
- Flexible business loan available for higher amounts
HSBC is an international banking provider offering businesses a range of banking and financial products including business loans. They offer two business loans which are the small business loan and a flexible business loan which can be fixed or variable rate. The small business loan is available to increase working capital.
HSBC’s small business loan offers fixed monthly repayments on loans from £1,000 to £25,000 on loans over 1 to 10 years. The loan is available to new and existing customers online, over the phone or in branch. The loan offers no charges for making additional payments and has the option to defer your first three months of repayments.
6. Barclays
Some of the features and benefits of Barclays’ working capital loan.
- Secured or unsecured loans
- Designed to help increase working capital
- Loans from £1,000 up to £100,000
- Approved loans will receive funding within 48 hours
- Repayment terms up to 20 years
- Fixed or variable interest rates
- 6-month repayment holiday available
- Interest-only repayments available
- Available to new and existing customers
- Existing customers can have a provisional borrowing limit
Barclays is an established banking provider offering a wide range of business products which includes business loans. They offer loans that are designed to help businesses with their working capital that are secured or unsecured loans for above or below £25,000.
Barclays’ smaller business loans are unsecured loans for £1,000 to £25,000 for periods from 1 to 10 years on a fixed rate and you could have a 6-month repayment holiday. Their larger loans are secured loans for £25,000 to £100,000 for terms from 1 to 20 years on a choice of fixed or variable interest rates and you may be eligible to benefit from interest-only repayments.
7. Lloyds Bank
Some of the features and benefits of Lloyds Bank’s working capital loan.
- Base Rate Loan for £1,000 to £50,000
- Fixed Rate Loan for £1,000 to £50,000
- Commercial Fixed Rate Loan for £50,001 to £500,000
- Loan periods from 1 to 25 years
- Variable and fixed rate loans
- Instant decision online for loans up to £10,000
- No arrangement fees on loans up to £25,000
- No early repayment fees on Base and Fixed Rate Loans
- Capital repayment holiday available on Commercial Fixed Rate Loans
- Available to new and existing customers
Lloyds Bank is a UK banking provider that offers a range of business banking and lending products. They offer three business loans catering for different needs to existing and new customers. They offer instant decisions online for loans under £10,000 and no arrangement fees on loans under £25,000.
Lloyds Bank’s Base Rate Loan is a variable rate loan for £1,000 to £50,000 over 1 to 10 years. The Fixed Rate Loan offers the same deal but on fixed rates. The Commercial Fixed Rate Loan offers loans of £50,001 to £500,000 over 1 to 25 years on a fixed interest rate.
8. TSB
Some of the features and benefits of TSB’s working capital loan.
- Base and Fixed Rate Loans
- Fixed Rate Loan from £1,000 to £1,000,000
- Base Rate Loan offering loans from £25,001
- Terms from 1 to 10 years on Fixed Rate Loans
- Terms from 1 to 25 years on Base Rate Loans
- Fixed Rate Loans offered on both secured and unsecured basis
- Security may be required
- Capital repayment holidays may be available
- Arrangement fees apply
- Available online, over the phone and in branch
TSB is a UK banking provider that offers a range of business banking and lending products including business loans. They offer two loans called the Base Rate Loan and Fixed Rate Loan. The Base Rate Loan offers loans from £25,001 on terms from 1 to 25 years on variable interest rates. This loan may require security.
TSB’s Fixed Rate Loan offers loans from £1,000 to £1 million for periods from 1 to 10 years on fixed interest rates on a secured or unsecured basis. Arrangement fees apply on both loans and they both offer capital repayment holidays to eligible businesses.
9. Santander
Some of the features and benefits of Santander’s working capital loan.
- Flexible business loan
- Can be tailored to your needs
- Choice of fixed or variable rate loans
- Loans from £25,001
- Will consider loans of all amounts
- Repayment terms of up to 25 years
- Can fund a variety of reasons
- Will consider new businesses
- Available to established SMEs, owner-managed or larger groups
- Dedicated Relationship Directors
Santander is an international banking provider who offers a range of financial products to business in the UK. Their business loans are flexible and can be tailored to meet your business needs. Loans are available for a variety of reasons including exploring new markets, R&D, new products or strategies.
Santander’s business loans offer a choice of fixed and variable interest rates on loans from £25,001 and they will consider loans of all amounts. Their business loans are available to established SMEs, owner-managed companies, larger groups and they will consider new businesses. They provide businesses with a Relationship Director to support them.
10. Bank of Scotland
Some of the features and benefits of Bank of Scotland’s working capital loan.
- Choice of three loans
- Base Rate Loan of over £1,000 on variable rates
- Fixed Rate Loan of £1,000-£50,000 on fixed rates
- Fixed Rate Loans for £50,001 and over
- Loan terms from 1 to 25 years
- Offers secured and unsecured loans
- Instant response to online applications below £10,000
- No arrangement fees on loans under £25,000
- No early repayment charges
- Existing customers can apply through their internet banking
Bank of Scotland is a UK based banking provider offering a wide range of business banking services including business loans. They offer three business loans, one variable and two fixed-rate loans. The Base Rate Loan is for loans over £1,000 for periods of 1 to 25 years on a secured and unsecured basis.
Bank of Scotland’s two fixed rate loans are available for loans of £1,000-£50,000 for periods of 1 to 10 years, and for over £50,001 for periods of 1 year to 25 years. All of their loans offer no arrangement fees if the loan is under £25,000. They do not charge early repayment costs on their loans.
11. Clydesdale Bank
Some of the features and benefits of Clydesdale Bank’s working capital loan.
- Choice of two loans
- Suitable to grow or sustain your business
- Available for loans from £25,000 to £10 million
- Option to make overpayments at no charge
- Ability to redraw any overpayments later
- Capital repayment holidays available
- The Flexible Business Loan has a variable interest rate
- The Business Loan offers a choice of fixed, variable or mixed interest rates
- Arrangement fees may apply
- Dedicated relationship manager
Clydesdale Bank is a Scottish banking provider that offers a variety of banking and lending services including business loans. They offer two business loans called Flexible Business Loan and Business Loan that are available to help you grow or sustain your business. The Business Loan offers loans from £25,001 to £10 million on fixed, variable or mixed interest rates.
The Flexible Business Loan is available for loans over £25,000 on a variable interest rate. This is a flexible loan as it offers the ability to make overpayments and redraw the overpayments if needed and they offer the first two redraws free of charge.
12. Spotcap
Some of the features and benefits of Spotcap’s working capital loan.
- Business loans to help you manage your cash flow
- Loans from £50,000-£250,000
- Repayment terms of 1 to 24 months
- Straightforward application process
- Online application
- Decisions received in one working day
- No early repayment fees
- To be eligible you must have a turnover of over £500,000
- Must have been trading for at least three years
- Dedicated client service
Spotcap is an international provider of business financing who offers a business loan to UK businesses that have been trading for over three years and have an annual turnover above £500,000. They use an online application which is a simple form to determine the financial health of your business and will give you a decision in one working day.
Spotcap’s business loan is available for amounts from £50,000 to £250,000 on repayment terms from 1 to 24 months. They offer transparent pricing with a single arrangement fee when you draw down funding and no other fees are charged including early repayment fees.
13. Fleximize
Some of the features and benefits of Fleximize’s working capital loan.
- Fast and flexible business loan
- Choice of secured and unsecured loans
- Loans from £5,000 to £500,000
- Repayment terms from 1 to 48 months
- No hidden fees
- No early repayment charges
- Online application
- Decision made within 24-48 hours
- Exclusive discounts through the member scheme
- Dedicated relationship manager
Fleximize is an independent UK business lender who offers businesses loans for £5,000 to £500,000 for periods from 1 to 48 months on either a secured or unsecured basis. They claim that they have transparent pricing with no hidden charges and they do not charge early repayment fees.
Fleximize’s business loans have an online application form and a decision will be made by your dedicated relationship manager within 24-48 hours and funds can be received on the same day as the decision is made. They have flexible repayment terms and can offer you top-ups and repayment holidays. Moreover, they can also help with business loans for women.
14. LendingCrowd
Some of the features and benefits of LendingCrowd’s working capital loan.
- Fast and simple business loans
- Get a decision within 24 hours
- Loans from £5,000 to £500,000
- Repayment terms from 6 months to 5 years
- Funding can be released on the same day
- Transparent fees
- Peer-to-peer lending site
- Available to SMEs
- No early repayment fees
- Experienced Credit Team will support you
LendingCrowd is an online peer-to-peer lending service that brings together borrowers and lenders. The service is available to small to medium-sized businesses wanting to borrow funding from £5,000 to £500,000 on terms of 6 months to 5 years.
LendingCrowd’s business loans have an online application which is assessed by their Credit Team normally within 24 hours and then it is open for investors to place bids to fill your loan. Once you accept the loan funding can be received on the same working day. They claim to offer transparent pricing and provide a loan calculator to help you work out the cost before applying.
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