Independent ranking
Best UK business loans for franchisees
Independent UK lender rankings matched to your file. Soft credit search only, post-decline routes included; typical decision times vary by product and lender and are stated in the ranking below.
Start here · What do you need?
Our franchisee sector guide names Allica Bank directly as the natural fit for franchise-fee and fit-out lending, and points to the British Business Bank Start Up Loan to help fund the initial fee on a brand-new unit. Funding Circle and iwoca fill the working-capital gap while a new unit trades through its thin first months. This FundBiz ranking assesses 4 UK lenders for "best uk business loans for franchisees", weighting primarily on franchise-fee and fit-out term-loan fit (30%), first-year working-capital support (20%), eligibility breadth (20%) (see the full weighted criteria below). Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product criteria, not customer reviews and not paid placement. Inclusion is never paid for: FundBiz is paid by lenders on completed funding, not for a verdict, and commission never changes a position. Match against the panel in two minutes with a soft search only.
Source: FundBiz methodology, last reviewed 2026-08-03. Editorial by Best Business Loans Ltd (16833937).
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's specialty finance comparison and the logic behind how businesses are matched to lenders.
Last reviewed: 3 August 2026
-
SME term loan + commercial mortgage · £150k to £5m · 5 to 10 business days
Named directly on our franchisee sector guide as the natural fit for franchise-fee and fit-out lending.
Read full Allica Bank review → -
Government-backed unsecured personal loan to fund a UK start-up · £500 to £25k per founder (max £100k per business) · 4 to 8 weeks
Named on our franchisee sector guide to help fund the initial franchise fee on a new venture.
Read full Start Up Loans Company review → -
Term loan · £10k to £500k · 1 to 3 business days
Term loans for established multi-unit franchisees.
Read full Funding Circle review → -
Flexi-loan / line of credit · £1k to £500k · Same day to 24 hours
Working capital to bridge a new unit through its thin first-year trading.
Read full iwoca review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Allica Bank | From 7.99% APR | £150k to £5m | 5 to 10 business days | Named directly on our franchisee sector guide as the natural fit for... |
| Start Up Loans Company | Fixed 7.5% APR | £500 to £25k per founder (max £100k per business) | 4 to 8 weeks | Named on our franchisee sector guide to help fund the initial franchise fee on... |
| Funding Circle | 6.9% to 26.9% APR | £10k to £500k | 1 to 3 business days | Term loans for established multi-unit franchisees. |
| iwoca | From 2% per month | £1k to £500k | Same day to 24 hours | Working capital to bridge a new unit through its thin first-year trading. |
What is the best business loan for a UK franchisee?
Allica Bank is named directly on our franchisee sector guide as the natural fit for franchise-fee and fit-out lending. The British Business Bank Start Up Loan can help fund the initial fee on a brand-new unit, and Funding Circle or iwoca cover working capital while the unit trades through its first year.
How is a franchise fee and fit-out usually financed?
A term loan covers the franchise fee and initial fit-out, which lands as a single large cost before the unit has built its customer base. Asset finance covers equipment the franchisor specifies, and working capital bridges thin first-year trading.
What rate should a franchisee expect?
The Start Up Loan is a fixed 7.5% APR for the initial fee. Funding Circle prices 6.9% to 26.9% APR for an established multi-unit franchisee. Allica Bank prices from 7.99% APR on term loans and asset finance.
How fast can a franchisee get a decision?
iwoca decides same day to 24 hours. Funding Circle decides in 1 to 3 business days. The Start Up Loan takes 4 to 8 weeks. Allica Bank, for larger fit-out or premises finance, takes 5 to 10 business days.
What stops a franchisee getting finance?
A newer or niche franchise system without a proven unit-economics track record, and thin trading on a brand-new unit, are the most common reasons a lender hesitates. A personal guarantee is usually required even with franchisor backing.
How we ranked these
We weight franchise-fee and fit-out term-loan fit (30%), first-year working-capital support (20%), eligibility breadth (20%), decision speed (15%), post-decline acceptance (15%). Rankings reflect our published editorial methodology, not any commercial arrangement. See our /methodology/ for the full basis.
Methodology weights
Weights specific to "Best UK business loans for franchisees":
- Franchise-fee and fit-out term-loan fit30%
- First-year working-capital support20%
- Eligibility breadth20%
- Decision speed15%
- Post-decline acceptance15%
Read the full methodology for how we score and rank every lender on the FundBiz panel.
Also considered
- Specialist franchise lending teams at the major banks (per our franchisee sector guide)
Not for
Newer or niche franchise systems without a proven unit-economics track record; thin first-year trading on a brand-new unit.
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel and surface the lenders most likely to approve your file, including post-decline routes. Limited companies, LLPs and partnerships of 4+.
Open the eligibility checker →Reviewed by Oliver Mackman, Director, Best Business Loans Ltd. Last reviewed: 2026-08-03. Editorial by Best Business Loans Ltd (16833937).