What are the best alternatives to Close Brothers?

Why consider alternatives to Close Brothers?

Close Brothers has been lending since 1878 and is one of the few FTSE 250 merchant banks still funding UK SMEs directly across asset finance, invoice finance and business loans. Facilities run to £5,000,000, the sector teams are genuinely specialist, and the rate range of 5% to 18% per annum with a 9.9% representative APR is competitive for a bank.

The reason businesses look elsewhere is the door policy. You need 24 months of trading, £250,000 of turnover and typically two full years of filed accounts before the conversation starts, and good credit for standard products. Then you wait 3 to 5 working days for a decision, longer if the deal is complex. For a business buying a £40,000 machine that needs to be on site next week, that is the wrong shape of lender. Its Trustpilot score of 3.5 from around 500 reviews is also the lowest of the lenders in this guide.

This guide covers seven lenders that beat Close Brothers on a named dimension: rate, decision speed, eligibility, sector fit, or the specific product leg you actually need.

Top Close Brothers alternatives

1. Lombard, Best for large asset finance at a lower rate

Lombard undercuts Close Brothers at both ends of the range, 4% to 15% per annum against 5% to 18%, with an 8.5% representative APR against 9.9%. It also lends up to £50,000,000, ten times Close Brothers’ ceiling, and asks for £100,000 of turnover rather than £250,000.

Rates and amounts: 4% to 15% per annum; £3,000 to £50,000,000; 8.5% APR representative.

Eligibility: 24+ months trading, the same as Close Brothers; £100,000 minimum turnover.

Pros: Lowest representative APR here; ten times the maximum facility; turnover floor 60% lower than Close Brothers; decisions in 2 to 5 working days; part of NatWest Group, which helps if you already bank there.

Cons: Asset finance only, so no invoice finance or unsecured loan; 24 months trading matches Close Brothers rather than easing it; not built for fast approval on small deals.

Best for: Established businesses financing vehicles, plant or machinery at scale that want the lowest published rate on a large facility.

Lombard North Central Plc is authorised and regulated by the Financial Conduct Authority, FCA reference number 137710. It is part of NatWest Group Plc.

2. Novuna Business Finance, Best for same-day decisions

Where Close Brothers takes 3 to 5 working days as standard, Novuna makes same-day decisions on standard deals up to £100,000, moving to 3 to 5 days only for larger facilities. It also finances from £1,000, a tenth of Close Brothers’ £10,000 minimum, and quotes an 8.9% representative APR.

Rates and amounts: 4% to 18% per annum depending on asset type, term and credit profile; £1,000 to £5,000,000; 8.9% APR representative.

Eligibility: 3+ years trading; £50,000 turnover for smaller ticket deals, £250,000 for larger facilities.

Pros: Same-day decisions up to £100,000; finances from £1,000; representative APR of 8.9% beats Close Brothers’ 9.9%; turnover floor of £50,000 on smaller deals is a fifth of Close Brothers’.

Cons: 3 or more years of trading is stricter than Close Brothers’ 24 months, so a young business gains nothing here; not suited to adverse credit; asset finance only.

Best for: Well-established businesses buying standard assets who need the decision inside the day rather than the week.

Mitsubishi HC Capital UK PLC, trading as Novuna Business Finance, is authorised and regulated by the Financial Conduct Authority, firm reference number 704348.

3. Aldermore, Best for businesses with only 12 months of trading

Aldermore halves Close Brothers’ trading requirement to 12 months and cuts the turnover floor from £250,000 to £100,000, while remaining a PRA-authorised bank. It gives same-day decisions on asset finance up to £250,000 and carries invoice finance, commercial mortgages and business loans alongside.

Rates and amounts: 4.5% to 20% per annum depending on product, asset type and credit profile; £2,000 to £10,000,000; 9.3% APR representative.

Eligibility: 12+ months trading for most products; £100,000 turnover for most products, with lower thresholds on some asset finance.

Pros: Half Close Brothers’ trading requirement; £100,000 turnover floor; same-day asset finance decisions up to £250,000; facilities from £2,000 to £10,000,000; the same four-product spread as Close Brothers.

Cons: The 20% rate ceiling is above Close Brothers’ 18%; still asks for 12 months of trading, so genuine startups are out; not for significant adverse credit.

Best for: Businesses in their second year that want a regulated bank without waiting until they have two years of filed accounts.

Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 204503.

4. Paragon Bank, Best for specialist sector assets

Paragon Bank lends off its own balance sheet into construction, transport, agriculture, manufacturing, aviation and renewable energy, which is a closer sector match than a generalist lender for anything heavy or unusual. It offers hire purchase, leasing and refinance from £5,000 to £1,000,000.

Rates and amounts: £5,000 to £1,000,000; priced per deal, with no public rate card and no published representative APR.

Eligibility: Not publicly stated; assessed as part of underwriting.

Pros: Regulated bank lending from its own balance sheet; deep sector focus on heavy and specialist assets; facilities from £5,000, half Close Brothers’ minimum; refinance available on assets you already own.

Cons: No published rates, so you cannot compare cost before you apply; no published eligibility criteria or timescales either; £1,000,000 ceiling is a fifth of Close Brothers’; not a fast automated decision.

Best for: Construction, transport, agriculture and renewables businesses whose assets need an underwriter who has seen them before.

Paragon Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, FCA firm reference number 604551.

5. Shire Leasing, Best for young or adverse-credit businesses

This is the widest eligibility gap in the guide. Shire Leasing accepts businesses trading for 3 months against Close Brothers’ 24, sets no minimum turnover against Close Brothers’ £250,000, and reaches startups through a panel of specialist funders rather than one lender’s credit box.

Rates and amounts: 5% to 25% per annum depending on asset, funder and credit profile, with specialist funders potentially higher; £1,000 to £1,000,000.

Eligibility: 3+ months trading; startups considered via the specialist funder panel; no minimum turnover.

Pros: 3 months trading against 24; no turnover floor; same-day decisions on standard deals and 24 to 48 hours on complex cases; multi-funder panel means a decline from one funder is not a decline from the market; strong on technology, IT and office equipment.

Cons: The 25% per annum ceiling is well above Close Brothers’ 18%, which is what easier access costs; £1,000,000 maximum; a broker model rather than a direct bank relationship.

Best for: Young businesses and those with adverse credit that Close Brothers would not reach the underwriting stage with.

Lendus has not verified Shire Leasing’s regulatory status against a primary source, so no FCA claim is made for it here. Check the FCA Register at register.fca.org.uk before committing.

6. Funding Circle, Best if you want an unsecured loan instead

If the asset is not the point and you simply need capital, Funding Circle removes the security question entirely. It asks for 1 year of trading against Close Brothers’ 24 months and £50,000 of turnover against £250,000, and decides within 24 hours.

Rates and amounts: 6.9% to 36% per annum, fixed for the loan term; £10,000 to £500,000; 13.9% APR representative.

Eligibility: 1+ year trading; £50,000 annual turnover; not suited to significant adverse credit or recent CCJs.

Pros: Half Close Brothers’ trading requirement and a fifth of its turnover floor; decision within 24 hours with funds typically within 3 business days; fixed rate for the term; no asset needs to be identified or valued.

Cons: 13.9% representative APR is above Close Brothers’ 9.9%, because unsecured lending costs more than secured; £500,000 ceiling is a tenth of Close Brothers’; no invoice or asset finance.

Best for: Businesses that were quoted asset finance by Close Brothers but actually need general working capital and would rather not tie up an asset.

Funding Circle Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 722513.

7. Ultimate Finance, Best for the invoice finance leg

Close Brothers offers invoice finance as one of three products. Ultimate Finance does it as a specialism, pricing at 0.8% to 2.5% of invoice value per month and setting facilities up in 5 to 10 working days, with initial funding within 24 hours of activation.

Facility and pricing: £20,000 to £5,000,000; 0.8% to 2.5% of invoice value per month (discount charge, plus a service fee).

Eligibility: 3+ months trading with invoice history preferred; £250,000 annual turnover for invoice finance, lower for asset finance.

Pros: 3 months trading against Close Brothers’ 24; published discount charge range; sector specialists in construction, labour supply, recruitment, manufacturing and professional services; a dedicated relationship manager; asset finance available alongside.

Cons: The £250,000 turnover requirement matches Close Brothers rather than easing it; no unsecured business loan; not suitable for retail or B2C businesses that do not invoice.

Best for: B2B businesses over £250,000 turnover that wanted Close Brothers for the invoice finance and can skip the two-years-of-accounts requirement.

Lendus has not verified Ultimate Finance’s regulatory status against a primary source, so no FCA claim is made for it here. Check the FCA Register at register.fca.org.uk before committing.

Comparison table

How to choose the right alternative

Choose Lombard if the deal is large, the asset is standard and the lowest representative APR is what decides it.

Choose Novuna Business Finance if you have three or more years behind you and need the answer today on a deal under £100,000.

Choose Aldermore if you are in your second year of trading and want a regulated bank that will not ask for two years of filed accounts.

Choose Paragon Bank if the asset is heavy, specialist or sector-specific and you want an underwriter who already understands it.

Choose Shire Leasing if Close Brothers would not look at you at all, on trading history, turnover or credit.

Choose Funding Circle if what you actually need is working capital rather than an asset, and you would rather not give security.

Choose Ultimate Finance if invoice finance was the reason you approached Close Brothers in the first place.

One caution when comparing: Close Brothers publishes both a rate range and a decision timescale, which several alternatives here do not. Paragon Bank and Shire Leasing’s specialist funders price per deal, so the only meaningful comparison is a quote on your exact asset, term and deposit. Ask for total repayable in pounds, not the headline rate.

Lendus is an introducer, not a lender or a credit broker. We do not approve, decline or price any facility. Confirm any lender’s regulatory status at register.fca.org.uk before you commit.