Barclays business loans: rates, fees, and who they suit

Barclays lends UK limited companies up to £25,000 unsecured over one to 10 years at a fixed rate, with no arrangement or early repayment fees. Above that it lends against security, priced case by case. Here's what each costs, who qualifies, and when a bank loan is the right shape for the money you need.

Barclays prices by size. The representative APR falls from 14.9% on loans under £5,000 to 8.5% from £15,001 to £25,000. Above £25,000 nothing is published, and security, arrangement fees, and breakage costs are agreed case by case (Barclays, checked on 13 October 2026).

iwoca is a lender too, so we compete with Barclays. Every Barclays fact below comes from barclays.co.uk and its own product documents, checked on 13 October 2026. Rates and terms change, so check Barclays' site before you apply.

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Barclays business loans at a glance

Barclays has two business loans: an unsecured loan of £1,000 to £25,000 over one to 10 years at a fixed rate, and Barclayloan for Business from £25,001, which needs security and is priced case by case. Across both, it says it lends from £1,000 up to £25 million.

Sources: the Barclays business loans page, the Barclayloan for Business factsheet (09/25), and Barclays' calculator rate file, all checked on 13 October 2026.

Barclays' own page contradicts itself on one point, so it's worth knowing before you read it. The product block caps the unsecured loan at £25,000, while a paragraph higher up says Barclays can give you borrowing options up to £100,000, and that above £100,000 you need a secured loan. The published rates and the calculator stop at £25,000, so ask which applies to the amount you want.

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What a Barclays business loan costs up to £25,000

Barclays quotes an overall 11.2% representative APR on loans of £1,000 to £25,000, and the rate you're offered depends on how much you borrow: the smaller the loan, the higher the APR.

A representative APR isn't the rate you're promised. Barclays defines it as the highest rate it expects at least 51% of people to get in response to an advert, which means your own quote can come back higher. These are the bands and the fixed interest rates behind them:

What £10,000 costs over two years, as our calculation: at the 10.66% fixed rate behind the 11.2% band, a £10,000 loan over 24 months comes to £464.50 a month and £11,148 in total, of which £1,148 is interest. Barclays' own quote may differ, and its calculator gives an indication of the APR before you apply without affecting your credit score.

Repaying early costs nothing at this size. Barclays charges no arrangement fee and no fee for repaying your loan early on borrowing up to £25,000, so clearing it ahead of schedule simply saves you the remaining interest. That changes above £25,000.

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Loans from £25,001 need security, and fixed rates carry breakage costs

From £25,001 Barclays lends through Barclayloan for Business, against security, over one to 25 years. Arrangement fees apply, and if you take a fixed rate and repay early, you pay breakage costs on top.

• Terms run from one to 25 years up to £3 million, or up to five years above £3 million.
• Rates are either fixed, for up to 10 years at a time, or variable, tracking the Bank of England base rate.
• You can ask for interest-only repayments at the start, and for up to 12 months during the term, subject to approval.
• Arrangement fees and associated borrowing costs apply, and Barclays doesn't publish what they are.
• Green Barclayloan for Business also starts at £25,001, at a discounted rate on eligible green assets.

Breakage costs are the part worth reading twice, because they can turn a sensible early repayment into an expensive one. There are none on a variable rate. On a fixed rate you can overpay up to 10% of the balance a year for free, and beyond that the charge runs from 7% of the amount you repay in the first three years down to 1% at the end of a 10-year fix. Barclays' own example: repay £100,000 three and a half years in and you're in your fourth year, which costs £6,000.

Because this is a secured loan, any property or asset you put up can be repossessed if you don't keep up the repayments.

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Limited companies should expect to be asked for a personal guarantee

Barclays asks limited companies for a personal guarantee on business lending. Its business overdraft page says that for a limited company, any lending up to £100,000 will require one, and the Barclayloan for Business factsheet says Barclays may need security and a personal guarantee in some circumstances.

A personal guarantee is your legal commitment to repay the company's debt if the company can't. Before you sign, it's worth checking whether the guarantee is capped, which directors need to sign it, and what happens to your liability if you later leave the business.

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Growth Guarantee Scheme loans at Barclays

Barclays offers Growth Guarantee Scheme loans of £25,001 to £2 million, or up to £1 million in Northern Ireland, over terms of one to six years. The scheme replaced the Recovery Loan Scheme and runs until 31 March 2030.

The Growth Guarantee Scheme gives Barclays a government guarantee, not you: your company stays liable for the whole debt. To be eligible, Barclays says your business needs:

• To have an annual turnover under £45 million.
• To be trading in the UK.
• To make more than half its income from trading.
• To be viable, with a clear business plan.
• To be financially healthy, rather than in difficulty.

Barclays aims to give a lending decision within a few days, and you apply by phone or by asking it to call you back.

Source: the Barclays Growth Guarantee Scheme page, checked on 13 October 2026.

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Who can get a Barclays business loan

Barclays lends to UK businesses that hold a business current account, with Barclays or with another bank, and it accepts applications only from the business owner or in line with the bank mandate. Its loans aren't available in every industry.

Beyond that, Barclays publishes no credit score threshold. It says its business loans are subject to normal lending assessment, status, and application, which is as specific as most banks get. You can check your business credit score with iwoca Credit Compass before you apply. It's free, and it shows your Equifax business credit score along with the factors affecting it.

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How to apply for a Barclays business loan

If you already have a Barclays business account you can apply in Online Banking or the Barclays app, and you may get an immediate decision. If you don't bank with Barclays, you apply by phone instead. Either way, the money usually arrives within 48 hours of you signing.

Barclays asks for four things:

• Your trading accounts
• Your current business plan
• Your profits and losses
• How you plan to use the loan

1. Price it up. Barclays' business loan calculator gives an indication of what an unsecured loan of up to £25,000 would cost, and getting an estimate doesn't affect your credit score.
2. Apply. Existing customers start the application in Online Banking or the app, or call 0333 202 7431 from 08:30 to 18:00, Monday to Friday except bank holidays. If you don't have an account with Barclays, call 0800 515 462 from 08:00 to 18:00 and it will explain which documents it needs.
3. Sign. Barclays releases the money once you've signed the final paperwork, so get the signatures you need lined up in advance.

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You can appeal a declined Barclays application within 30 days

If Barclays declines your application, you can appeal within 30 days, as long as your business or group has turnover under £25 million and you haven't already appealed the same decision. Barclays says an independent auditor monitors its lending appeals process.

You can also appeal when you've been approved but aren't happy with the terms, though not about the borrowing costs or the fees you agreed. Separately, and only with your consent, Barclays can refer a declined application to three finance platforms – Alternative Business Funding, Funding Options, and Funding Xchange – which then contact you directly.

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Who a Barclays business loan suits

A Barclays business loan suits a limited company borrowing a set amount for something it has planned and will repay over years. At £15,001 to £25,000 held for the full term, the 8.5% representative APR is hard for an alternative lender to beat.

What works well:

• Nothing to pay to arrange the loan or to clear it early, so repaying as soon as cash allows costs you nothing.
• Fixed repayments for terms of up to 10 years, so the cost is predictable from day one.
• Larger, secured borrowing can be spread over as long as 25 years.
• A repayment holiday you can apply for from the start, if the first few months will be tight.

What to watch:

• Small loans are the expensive ones, because the APR is highest in the band under £5,000.
• You need a business current account, even if it's with another bank.
• A personal guarantee from a director is the norm for limited companies.
• Above £25,000 you need security, and neither the rate nor the arrangement fee is published.
• Barclays says its loans aren't available for all industries, so your sector may rule you out.

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When a Flexi-Loan fits a cash flow gap better than a Barclays loan

A bank term loan is the wrong shape for a timing problem. If you're bridging an invoice that gets paid in 60 days, or buying stock you'll have sold by Christmas, a loan fixed over five years leaves you paying interest for years on money you needed for weeks.

That gap is what an iwoca Flexi-Loan is for: you draw what you need, pay interest only for the days you hold it, and repay early at no cost. Two situations often come up.

You've done the work, but you get paid in 60 days. VCare Group delivers care for local authorities that take 30 to 60 days to pay, while 200 staff need paying every month. Victoria Simpson, its founder, puts it plainly: 'It might be just a two or three day gap. But when you've got payroll running at that level, two or three days matters.' A three-day gap costs three days of interest, not a five-year commitment.

Your cash is sitting in stock. Muscle Squad sells fitness equipment, so its money goes out on inventory months before it comes back through sales. 'We go through waves of borrowing a significant amount and paying back a significant amount,' says Chris Billingham, its founder. 'You need the conviction that a good period is only around the corner.' Drawing and repaying in step with the season is the one thing a fixed term loan can't do.

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Barclays business loan FAQs

Do I need a Barclays business account to get a business loan?

You don't need a Barclays business account, but you do need a business account with another bank. Barclays also says it will only accept an application from the business owner, or in line with the bank mandate.

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Can a start-up get a Barclays business loan?

Barclays offers its unsecured business loan to start-ups: its loans page covers 'a startup business loan or a business looking to grow', over terms of one to 10 years. It still asks for your trading accounts, profits and losses, and a current business plan, which can be hard to supply in your first months of trading.

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Can I take a repayment holiday on a Barclays business loan?

You can apply for a repayment holiday from the start of a Barclays business loan. Interest keeps building during it, so the loan costs you more overall than it would without one.

Barclays' FAQs add that capital repayment holidays are available on loans over £25,000, and that if you originally borrowed less than £25,000 you could be eligible for a three-month holiday.

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Which bank is best for a business loan?

No single bank is best for every limited company, so compare them on four things.

Those are the representative APR for the amount you actually need, whether the lender wants security or a personal guarantee, what it costs to arrange the loan and to clear it early, and how long the money is committed for. The same questions apply to HSBC, Lloyds, and NatWest business loans.