Barclays business loans: overview and alternatives

Barclays is a large UK bank providing both personal and business banking services. In this guide we will cover their business loans offering (from small unsecured loans to secured borrowing of up to £25 million), sharing who they'll lend to, how the application process works, and most importantly, the real pros and cons of going with them. We'll also look at alternatives to help you find the right fit for your situation.

What business loans does Barclays offer?

Barclays offers several products when it comes to lending. They have four main products in their portfolio, each suited to different needs.

Unsecured business loan

If you don't have property or assets to put up as collateral, Barclays' unsecured loan is the common option. You can borrow between £1,000 and £25,000 over one to ten years with a fixed interest rate, so your monthly payment stays the same. There’s no arrangement fees and no penalties if you want to pay it off early. They also offer a repayment holiday so you can ask for a break at the start where you don't need to pay the capital, though be aware, interest still builds up and gets added to future payments. 

Secured business loan

For borrowing over £25,001, Barclays offers secured lending. This means you're putting up collateral (usually property). In return, you get access to much larger amounts (up to £25 million) with terms stretching to 25 years. You've also got more flexibility here with fixed or variable rates or interest-only payments at the start, all subject to approval.

Green business loan

If you're investing in renewable energy, energy-efficient tech, or switching to electric vehicles, Barclays will give you a discounted interest rate. Minimum borrowing is £25,001, but they've partnered with Propel8 so you can get smaller green asset loans (from £5,000) for things like solar panels, heat pumps, or EV charging points.

Growth Guarantee Scheme

This is Barclays' government-backed option for businesses that might not have a strong track record or significant assets. It's designed to unlock lending for genuine businesses that traditional banks might otherwise turn away, subject to eligibility. 

What you'll pay: Barclays rates explained

Here's what Barclays' published APR rates look like:

• 14.9% APR on loans from £1,000 to £5,000

• 11.2% APR on loans from £5,001 to £15,000

• 8.5% APR on loans from £15,001 to £25,000

Please note these are representative APRs. This means at least 51% of borrowers will get these rates or better. Your personal rate depends on your credit profile and the lender's assessment of you.

Check what rate you might get before formally applying, and it won't negatively affect your credit score.

Who is eligible for a Barclays business loan?

Your business needs to be UK-based, that's the minimum. For unsecured loans up to £25,000, you'll typically need some kind of trading history (though startups aren't automatically ruled out), a reasonable credit profile, and if you're already a Barclays customer, you can get an instant eligibility check online. Worth knowing: Barclays won't lend to every industry. Some sectors are off-limits for regulatory or risk reasons.

How to apply for a Barclays business loan?

If you're already banking with Barclays, do the following:

1. Log into Online Banking or the app

2. Go to 'Products and Services'

3. Fill in your details – they'll show you what you might qualify for

4. Submit and wait

If you prefer talking to someone:

• Call 0800 515 4623

• Existing customers can call 0333 202 7431

• Or ask them to call you back

You'll need to have ready:

• Your trading accounts

• Your business plan

• Profit and loss statements

• What you're planning to use the money for

The pros and cons of going with Barclays

Pros:

• They're a household name – Barclays has been around a long time and has branches on high streets across the country. 

• They do have options – Whether you want unsecured lending, something secured, green finance, or government-backed schemes, they've got a product for various situations.

• Fast if you're an existing customer – If you already bank with them, you can get approval and cash typically within 48 hours on unsecured loans. 

• No hidden fees – No early repayment penalties on unsecured loans, and no arrangement fees either.

• No initial repayments – The repayment holiday option means you can pause capital repayments at the start if you need breathing room.

• Green finance works – If you're going renewable or electric, they incentivise it with better rates.

• Flexibility on secured loans – For larger borrowing, you get real flexibility: fixed or variable rates, terms up to 25 years, interest-only options.

Cons:

• Security required – For anything over £25,001, they want collateral. That's a big barrier if you don't own property or have assets to put up.

• Rates on big loans aren't published – With secured lending, Barclays won't tell you the rate upfront. You have to apply to find out, which is a bit annoying.

• Secured loans take longer – The 48-hour turnaround is only for unsecured. Larger loans take more time.

• Growth Guarantee Scheme has a minimum – It starts at £25,001. For smaller businesses, this option is off the table.

• Not all industries get approved – Some sectors are a no-go, so check before you spend time applying.

Alternatives to Barclays business loans

Barclays is a high street lender, but they're not the only option. Depending on what you're after, these might be worth a look too.

Funding Circle – If speed matters, Funding Circle offers small business loans from £10,000 to £750,000 with decisions sometimes coming in as little as 1 hour. They work with a whole network of lenders rather than just lending their own money, which can mean faster approvals on some applications.

Government-backed lending – The Growth Guarantee Scheme is available through multiple lenders, not just Barclays, and often has better terms if you qualify. It's worth exploring if you're not quite meeting traditional bank criteria, though it’s subject to eligibility.

Other high street banks – Lloyds, Nationwide, and Monzo all have competitive business lending. Worth getting quotes from a few to compare.

FAQs

Can a startup get a Barclays business loan?

Yes, they'll consider startups. They've also got a partnership with the Start Up Loans scheme if you want to explore that route (up to £25,000 for brand new businesses). For standard unsecured loans, you might get approved as a startup, but you'll need to show a proper business plan and some evidence you've thought it through.

What if I pay the loan off early?

There are no early repayment fees on unsecured loans, so if you come into some money and want to clear it, you can. It'll save you interest too.

Will they ask for a personal guarantee?

It varies case by case. Since this is a pretty important question, it’s best to ask them directly when you're applying.

Disclaimer

02/07/2026 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. All information is correct at time of publishing, and customers should do their own research before making financial decisions. If you have any questions, please speak to your professional adviser or seek independent legal advice.