Starting or scaling a business often requires capital, but many owners want to avoid traditional bank loans. Below are ten external finance providers offering business loans or revenue‑based funding in the UK as of January 2026.
These lenders aren’t high‑street banks; instead they’re alternative finance companies or government‑backed programmes. Always check eligibility and terms on the provider’s official site before applying, and remember this list is general information rather than personalised financial advice.
1. Funding Circle
Funding Circle is a peer‑to‑peer lending platform that links small businesses with investors. It offers loans from £10,000 to £750,000 with repayment terms of six months to six years. According to independent analysis, interest rates typically range from around 6.9 % to 14.9 % and there are no early‑repayment penalties. Applications are completed online and decisions are usually made within a day. Funding Circle official site.
2. iwoca
The London‑based fintech iwoca provides flexible credit lines to limited companies and partnerships. Loan amounts can start at £1,000 for sole traders and reach up to £1 million for established companies; new businesses usually qualify for a maximum of about £10,000. Repayments can be spread over one month to five years and rates vary depending on risk (the article notes annual rates can be around 18 %). Decisions are quick and there are no fees to repay early. iwoca official site.
3. Spotcap
Spotcap offers unsecured business loans intended to boost working capital. SMEs can borrow up to £250,000 with terms from six months to 24 months. Interest is charged only on the amount outstanding and rates have been quoted around 24.2 % APR. Applications take about five minutes and funding decisions are typically made within one business day. Spotcap official site.
4. Capify
Capify is an alternative finance company established in 2008 that provides short‑term business loans and merchant cash advances. Businesses can access funding of £3,500 to £500,000 with typical terms between six months and ten months. Rates are usually higher than bank loans (APR around 67.9 %) but decisions are quick and there are no charges for early repayment. Capify official site.
5. Fair Finance
Fair Finance is a social enterprise designed to help entrepreneurs who struggle to access mainstream credit. It offers business loans between £10,000 and £30,000, repayable over six months to 36 months. Interest rates tend to be high (around 69.9 % APR) because the company lends to riskier borrowers, but it aims to be transparent and supportive. Fair Finance official site.
6. Start Up Loans (British Business Bank)
The UK government’s Start Up Loans programme provides unsecured personal loans to new businesses trading for less than three years. Individuals can borrow between £500 and £25,000 (with a maximum of £100,000 across multiple directors) at a fixed 6 % annual interest rate. Repayment terms range from one year to five years and applicants receive free mentoring and business support Start Up Loans official site.
7. Choice Business Loans
Choice Business Loans is a broker that connects SMEs with more than 400 lenders, including banks, peer‑to‑peer platforms and alternative lenders. Businesses can apply for up to £500,000 with repayment terms up to five years. The company’s advisers help find tailored finance options and there is no obligation to accept offers. Choice Business Loans official site.
8. Fleximize
Fleximize offers flexible business loans designed for small and medium‑sized enterprises. Loan amounts range from £5,000 to £500,000 with terms of one month to 48 months. Customers can repay early without penalties and can top up their loan if needed. Typical annual rates are quoted around 46.8 % APR, and funds may be available within one working day. Fleximize official site.
9. Ezbob
Ezbob supplies lending technology for banks but also directly provides business loans through partners. Small businesses can borrow £1,000 to £120,000 for one month to 12 months. The platform uses automated credit scoring and approvals can occur in minutes; representative APR is around 38.9 %. Ezbob official site.
10. Liberis
Liberis specialises in revenue‑based finance, which isn’t technically a loan, businesses receive funding in exchange for a percentage of their future card sales. Amounts typically range from £2,500 to £300,000 and there’s no APR; instead you pay a fixed fee known in advance. Repayments adjust with your daily revenue, so you pay more when business is busy and less during slower periods. Liberis official site.
These external lenders offer a range of options for UK businesses seeking funding outside of traditional banks. Be sure to compare offers, check fees and read all terms before committing to any loan, and consider seeking independent financial advice to determine which option best suits your business needs.
