Small companies are the backbone of London’s economy, yet securing the right financial support can be a challenge for many entrepreneurs. With so many options in the market from traditional banks to fintech providers choosing the best loans for small companies requires a thorough understanding of the products available, the terms offered, and the providers’ reputations.
This guide professionally breaks down the top 10 loan providers for small businesses in London, alongside the most frequently asked questions, so that small enterprises can make informed and strategic financing decisions.
What Are the Benefits of Business Loans for Small Companies?
Business loans can play a vital role in the success and sustainability of small companies in London. One of the most immediate benefits is access to working capital. Small businesses often face fluctuating income and unexpected expenses; loans can help bridge cash flow gaps, ensuring that daily operations continue without disruption.
Another important advantage is the potential for business expansion. Whether it’s purchasing new equipment, investing in marketing, hiring additional staff, or opening a new location, external funding allows small enterprises to scale strategically without depleting their existing resources.
How Can a Small Company Improve Its Loan Eligibility?
Improving loan eligibility starts with maintaining strong financial records. Lenders need to see that a business is organised, consistent, and transparent. Up-to-date bookkeeping, accurate income statements, and clearly tracked expenses give financial institutions confidence in the applicant’s reliability.
Creditworthiness is another key factor. A small business should aim to register with a business credit bureau and ensure timely payment of suppliers, taxes, and previous debts. A higher credit score not only increases the chance of approval but may also help secure better loan terms.
Who are the Top 10 Small Business Loan Providers in London?
1. Tide – “Banking That Works for Your Business”
Tide is a leading UK-based digital business account provider that partners with lenders to offer streamlined financing for small companies. Designed for startups and SMEs, Tide simplifies the banking and funding process through an easy-to-navigate app that helps manage expenses, issue invoices, and access loans.
While it doesn’t lend directly, its collaboration with other trusted providers ensures businesses can apply for loans up to £500,000 quickly. With no monthly fees and fast application procedures, Tide is especially attractive to businesses that want to combine financial management with access to funding in one platform.
Distinct Edge
Offers embedded business services with quick loan access.
Ideal Fit
Great for startups needing an all-in-one financial toolkit.
Pricing: No monthly fee for basic account; loan APR varies by provider.
- Website: https://www.tide.co
- Address: The Featherstone Building, 66 City Rd, London EC1Y 2AL, United Kingdom
- Email: hello@tide.co
Key Features Table
| Feature | Details |
| Loan Amount | Up to £500,000 |
| Funding Speed | Same-day (via partner lenders) |
| Loan Partner Options | Yes |
| Account Integration | Built-in business tools |
| Credit Checks | Soft search available |
Review: ★★★★☆
“Tide made managing my finances and applying for funding so simple—it’s all in one place.”
2. Iwoca – “Funding That Fits Your Business”
Iwoca is one of the UK’s top alternative lenders offering flexible financing solutions to small companies. It specialises in short-term loans and revolving credit lines, making it ideal for businesses that face unpredictable cash flow.
Applications are handled online with decisions often made within 24 hours. With loan limits of up to £500,000 and transparent terms, Iwoca removes the red tape often associated with traditional bank lending. It’s FCA-regulated and integrates with platforms like Xero and QuickBooks to speed up approvals.
Core Focus
Empowering cash-strapped SMEs with fast, flexible credit.
Best Suited To
Seasonal businesses needing on-demand funding.
Pricing: Interest from 2% per month
- Website: https://www.iwoca.co.uk
- Phone: 020 3778 0274
- Address: 1 Bedford Avenue London, WC1B 3AU
- Email: support@iwoca.co.uk
Key Features Table
| Feature | Details |
| Loan Size | £1,000 – £500,000 |
| Term | 1 day to 24 months |
| Application Time | 5–10 minutes online |
| Decision Time | Within 24 hours |
| Credit Required | Soft check first |
Review: ★★★★☆
“They approved us in less than a day, just when we needed funds to fulfil a big order!”
3. Funding Circle – “Fuel Your Business Ambitions”
Funding Circle is a pioneering peer-to-peer lending platform that connects investors directly with small businesses in need of financing. This allows for competitive rates and terms that are often more favourable than traditional banks.
Businesses can borrow between £10,000 and £500,000 with repayment terms up to 6 years. The application process is entirely online and typically takes 10 minutes. Funding Circle is regulated by the FCA and prides itself on transparency and supporting SME growth.
Key Offering
Market-leading P2P loans with personalised support.
Tailored For
Established SMEs looking for predictable repayment terms.
Pricing: From 7.9% APR
- Website: https://www.fundingcircle.com/uk/
- Phone: +44 800 048 2467
- Address: 71 Queen Victoria Street, London, EC4V 4AY
- Email: contactus@fundingcircle.com
Key Features Table
| Feature | Details |
| Loan Size | £10,000 – £500,000 |
| Term | 6 months – 6 years |
| APR | From 7.9% |
| Application Time | 10 minutes |
| Security | No personal guarantee needed (varies) |
Review: ★★★★☆
“Straightforward, transparent, and helped us expand without a hitch.”
4. Start Up Loans – “Government-Backed Support for New Businesses”
Start Up Loans is a UK government-backed initiative designed for entrepreneurs starting new businesses or in their first three years of trading. It offers personal loans for business use between £500 and £25,000 per co-founder.
The program also includes free mentoring and business advice, making it a comprehensive launchpad for first-time business owners. Loans are fixed at a 6% interest rate with terms from 1 to 5 years.
Unique Advantage
Combines funding with mentoring for new entrepreneurs.
Ideal Scenario
Pre-revenue startups or early-stage ventures with no credit history.
Pricing: 6% fixed interest per year
- Website: https://www.startuploans.co.uk
- Phone: 0344 264 2600
- Address: 71–75 Shelton Street, London, WC2H 9JQ
- Email: hello@startuploans.co.uk
Key Features Table
| Feature | Details |
| Loan Size | £500 – £25,000 |
| Interest Rate | Fixed at 6% p.a. |
| Term | 1–5 years |
| Support Offered | Mentoring included |
| Eligibility | UK residents, 18+ |
Review: ★★★★★
“The mentoring support helped me avoid beginner mistakes while funding my launch.”
5. Capify – “Capital When You Need It Most”
Capify delivers business loans specifically tailored to small and medium-sized enterprises across the UK. They specialise in working capital loans and merchant cash advances, offering funding within 24 hours in many cases.
The approval process considers business performance more than credit scores, which is helpful for companies with limited borrowing history. Repayments are flexible and often tied to daily revenue.
Primary Benefit
Revenue-based repayments that match business cash flow.
Best Used By
Retailers and hospitality businesses with daily transactions.
Pricing: Customised rates
- Website: https://www.capify.co.uk
- Phone: 0800 151 0980
- Address: Hamilton House, 249 Church Street, Altrincham, WA14 4DR
- Email: enquiries@capify.co.uk
Key Features Table
| Feature | Details |
| Loan Amount | £5,000 – £500,000 |
| Approval Speed | As fast as 24 hours |
| Repayment Type | Daily debits/percentage-based |
| Credit Check | Performance-based approval |
| Support | Dedicated account manager |
Review: ★★★★☆
“Capify understood our cash flow and tailored our repayment plan perfectly.”
6. Fleximize – “Flexible Loans Built Around Your Business”
Fleximize is a UK-based lender focused on personalised, flexible business loans for SMEs. Known for its customer-first approach, the company offers unsecured and secured funding from £5,000 to £500,000 with repayment terms up to 48 months.
What sets Fleximize apart is its ability to structure repayment holidays, top-ups, and overpayments without penalties. The firm uses a mix of technology and human support to make lending quick yet personalised, especially for industries often overlooked by high-street banks.
Signature Strength
High customisation in loan structures and terms.
Perfect Candidate
SMEs needing adaptive repayment plans with human support.
Pricing: From 0.9% per month (varies by loan profile)
- Website: https://www.fleximize.com
- Phone: 020 7100 0110
- Address: Holbrook House, 51 John Street Ipswich IP3 0AH
Key Features Table
| Feature | Details |
| Loan Size | £5,000 – £500,000 |
| Interest Rate | From 0.9% monthly |
| Term | Up to 48 months |
| Repayment Flex | Holidays, top-ups, no fees |
| Approval Time | Within 24–48 hours |
Review: ★★★★★
“They tailored the loan to suit our business cycles—super responsive team.”
7. Nucleus Commercial Finance – “Smart Finance for Modern Businesses”
Nucleus is a commercial lender offering a variety of funding options beyond traditional loans, including revolving credit facilities, cash flow loans, and asset finance. Their offerings are tailored to larger or growing SMEs with funding needs up to £2 million.
Known for rapid turnaround and intelligent credit decisions, Nucleus provides both secured and unsecured loans with terms up to 6 years. It’s ideal for businesses ready to scale or invest in growth strategies.
Strategic Edge
Diverse loan options under one commercial finance roof.
Best Matched With
Scaling SMEs that need access to large, flexible facilities.
Pricing: Varies based on funding type and risk profile
- Website: https://nucleuscommercialfinance.com
- Phone: 020 7839 1980
- Address: 120 Regent St., London W1B 5FE
- Email: contact@nucleus-cf.co.uk
Key Features Table
| Feature | Details |
| Loan Amount | £10,000 – £2 million |
| Term Length | 3 months – 6 years |
| Products Offered | Cash flow, asset finance, RCF |
| Application Speed | Fast-track available |
| Flexibility | Secured & unsecured available |
Review: ★★★★☆
“Helped us secure large funding for expansion—very professional team!”
8. HSBC – “Business Banking You Can Trust”
As one of the UK’s most established banks, HSBC offers small businesses a wide range of financial products, including tailored loans, overdrafts, and asset financing. Its Business Loan option provides up to £25 million with competitive interest rates and repayment terms of up to 20 years.
HSBC offers both secured and unsecured options, and businesses benefit from in-person support, extensive resources, and digital account management. It’s ideal for established companies looking for robust, long-term financial partnerships.
Banking Legacy
Combines stability with scalable business support.
Well-Suited For
Mature SMEs needing large-scale or long-term funding solutions.
Pricing: Varies by loan; fixed and variable options available
- Website: https://www.hsbc.co.uk
- Phone: 0345 740 4404
- Address: 28 Borough High St, London SE1 1YB
Key Features Table
| Feature | Details |
| Loan Size | Up to £25 million+ |
| Loan Types | Secured & unsecured |
| Term | Up to 20 years |
| Application Mode | Online & in-branch |
| Credit Criteria | Strong business history needed |
Review: ★★★★☆
“Solid choice if you need more than just a loan—complete business banking suite.”
9. Lloyds Bank – “Supporting British Businesses Since 1765”
Lloyds is a well-known high-street bank with comprehensive loan solutions for small companies. Their Business Loans range from £1,000 to £50,000 for unsecured borrowing, and much more for secured facilities.
Lloyds allows early repayments without penalties and offers expert consultations for clients through their business support teams. Their application process is slightly more traditional but ensures a thorough review for funding approval.
Trusted Experience
Generations of experience supporting UK enterprises.
Best Fit For
Business owners looking for reliable, low-risk funding from a top UK bank.
Pricing: Custom quotes based on amount and duration
- Website: https://www.lloydsbank.com
- Phone: 0345 072 5555
- Address: 25 Gresham Street, London, EC2V 7HN
- Email: business.support@lloydsbank.co.uk
Key Features Table
| Feature | Details |
| Loan Size | £1,000 – £50,000+ |
| Repayment Term | Up to 25 years |
| Early Repayment | No fees |
| Approval Type | Credit and affordability-based |
| Support Offered | Business support & advice |
Review: ★★★★☆
“Took a little longer but offered the best rate for a long-term loan.”
10. Barclays – “Helping Local Businesses Go Big”
Barclays offers tailored lending options to small companies looking to fund everything from working capital to asset purchases. Loans start at £1,000, and terms can be extended up to 20 years depending on the nature of the business.
Their digital business platform makes applying and managing funds simple, and local relationship managers provide a personal touch. Barclays is ideal for small companies looking for a mix of tech and tradition.
Major Strength
Blends digital efficiency with personal business banking.
Most Suitable For
London-based businesses wanting a tech-forward yet reliable lender.
Pricing: Competitive; fixed and variable interest available
- Website: https://www.barclays.co.uk
- Phone: +44 (0) 20 7623 2323
- Address: 1 Churchill Place, Canary Wharf, London, E14 5HP
Key Features Table
| Feature | Details |
| Loan Size | From £1,000+ |
| Loan Term | Up to 20 years |
| Approval Speed | A few business days |
| Loan Types | Fixed, flexible, overdraft |
| Application | Online & in-person options |
Review: ★★★★☆
“We liked the ability to manage everything online while still getting in-branch support.”
What Should You Look for When Comparing Loan Providers?
When evaluating business loan providers, the first element to consider is the interest rate and associated fees. Some loans may appear attractive at first glance but contain hidden charges or high APRs that can significantly impact the total repayment amount.
It’s essential to understand whether the rate is fixed or variable, and what other costs such as origination fees or early repayment penalties might apply.
Loan terms and repayment flexibility are also critical. Small companies should assess how long they have to repay the loan, whether they can make overpayments, and if there are any penalties for repaying early. A flexible repayment schedule can provide more breathing room during slower business periods.
Conclusion
Choosing the right loans for small companies in London requires a balance of speed, affordability, and flexibility. Whether it’s government-backed programmes, online fintech platforms, or traditional banks, each provider offers unique advantages tailored to different business needs.
The top lenders listed here have built reputations on trust, convenience, and competitive rates helping local entrepreneurs take the next step toward sustainable growth.
FAQs About Loans for Small Companies in London
What credit score do small businesses need for a loan in London?
Most lenders prefer a score above 600, but some fintech lenders offer funding with lower scores or none.
Can startups with no revenue still get a business loan?
Yes, especially through government-backed options like Start Up Loans.
Are online business loans safe and reliable?
Reputable platforms like Iwoca and Funding Circle are FCA-regulated and widely trusted.
How quickly can I get funds after loan approval?
Many lenders offer funding within 24 hours post-approval, particularly online lenders.
Can I use a personal loan for my business?
Only if structured like Start Up Loans, which are government-backed but personally issued.
What are typical repayment terms for SME loans?
Terms range from 3 months to 6 years, depending on lender and loan type.
Do I need collateral for a small business loan?
Not always. Many online lenders offer unsecured options; banks may require collateral.