OakNorth Bank review: business loans from £1 million for growing UK companies

OakNorth Bank is a UK bank that specialises in larger, tailored loans for growing businesses, starting at £1 million. It is known for structuring debt around the individual business rather than applying one-size-fits-all criteria, and for moving faster than many traditional lenders. OakNorth is one of the lenders on our panel. As an independent broker, we can help you decide whether OakNorth is the right fit and compare it with other lenders at this level. You can read more on OakNorth Bank's own website.

01About OakNorth Bank

OakNorth is a UK bank with offices in London and Manchester. It says it has lent over £11bn to UK entrepreneurs and helped more than 200,000 savers, whose deposits help fund its lending. Its own FAQs state that it is not a member or subsidiary of any other banking group.

Its pitch to business owners is that it does not treat every business in a sector the same. Rather than relying only on historical figures, it says it looks at the individual characteristics of each business and what it is planning to do next. It aims to fund within days or weeks rather than months.

Smart Funding Solutions is an independent broker and is not part of OakNorth Bank.

02What OakNorth Bank funds

OakNorth's business lending is debt finance for established, ambitious companies. The minimum loan is £1 million, and it says facilities can run to tens of millions. It offers several structures:

Structure	What it is for	Typical size
Amortising term loan	Growth, acquisitions or investment, repaid over the term	From £1 million
Non-amortising loan	Funding repaid as a lump sum at the end, for example from a sale or refinance	From £1 million
Revolving credit facility	Flexible borrowing you can draw, repay and redraw	From £1 million

Terms are agreed case by case. Typical uses at this level include buying another business, a management buyout, opening new sites, refinancing existing debt or funding property projects. If you need flexible working capital rather than a fixed loan, our guide to a revolving credit facility explains how these work.

03Who OakNorth Bank suits (and who it may not)

OakNorth names a set of sectors it specialises in:

• senior living and care
• hospitality, including pubs, hotels and restaurants
• childcare and education
• real estate and property development
• fund finance and private equity
• manufacturing and construction

It suits a profitable, growing company with a clear plan that needs at least £1 million, such as a care home operator adding homes, a hotel group refurbishing, or a manufacturer funding an acquisition. Businesses backed by private equity are also part of its market.

It is not an option for smaller loans. If you need less than £1 million, other lenders will be a better place to start. Very early-stage or loss-making businesses without a credible route to repayment are also unlikely to fit.

OakNorth's business lending is debt finance for established, ambitious companies.

04What OakNorth Bank looks at

OakNorth lists the factors its underwriting considers:

• how long the business has been trading
• annual turnover and profitability
• EBITDA, the measure of underlying earnings many lenders use at this level
• credit history
• the industry sector
• the overall risk profile

05Pros and cons

Pros

• Loans tailored to the business rather than a fixed sector template.
• Large facilities, from £1 million up to tens of millions.
• Several structures, including non-amortising loans and revolving credit.
• Aims to fund in weeks rather than months.
• Specialist knowledge in sectors such as care, hospitality and education.

Cons

• £1 million minimum rules out most small businesses.
• Expect detailed due diligence and a demanding information request.
• Security and personal guarantees may form part of the deal.
• Less suited to businesses without a strong track record or clear growth plan.

06Applying through a broker vs going direct

At seven-figure level, the way a case is presented matters as much as the numbers. Approaching one bank directly means you only see one view of your business. Comparing banks, specialist lenders and direct lending funds can turn up better structure, more headroom or a quicker route to completion.

We search the market across more than 300 lenders, help you put the information pack together and approach the lenders whose appetite fits your sector and deal. It is free to enquire; any broker fee is disclosed separately before you proceed. Start with our Instant Quotes tool to compare lenders in minutes, then we can take the conversation further.

07Alternatives to OakNorth Bank

• ThinCats: a strong alternative for sponsor-backed and growing SMEs, including some deals below OakNorth's minimum.
• Investec: worth comparing for larger growth, acquisition and working capital facilities.
• Allica Bank: often a better fit for established SMEs needing secured lending or commercial mortgages below seven figures.