Enquire about a business loan

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Small business loans

Flexible loans from £1,000 to £50,000 for small businesses and sole traders.

Why choose us for a small business loan?

Flexible amounts

Borrow between £1,000 and £50,000 as a secured or unsecured loan.

Repayment terms to suit your business

Choose the period of time that you want to repay the loan in. Starting from one year.

Fast access to your money

You can access your loan within 48 hours of the application being accepted.

Fixed Rate 11.2% APR representative* on loans from £1,000 to £25,000

APR for loans above £25,000 provided on application. Representative APR only – actual offered APR may differ.

  • 11.2% APR (fixed) representative based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £172.55 at an annual interest rate of 10.65% (fixed). Total amount payable £10,353.00.

    APR means annual percentage rate of interest charged against your loan which is a combination of Fixed Rate Cost of Funds (fixed) and an interest margin which is fixed for the term of the loan.

    The representative APR is an illustration of the highest rate that we expect to offer up to 51% of successful applicants.

    Applicants may receive a different rate of interest based on their individual circumstances.

    Our representative APR applies to all unsecured loans with a borrowing amount of up to £25,000 and for businesses with a turnover of up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

Is your business eligible?

To apply for a business loan from us, you must:

  • Be at least 18 years old
  • Want to borrow at least £1,000
  • Need the money for business, not personal reasons
  • Be a sole trader, partner or director and authorised to borrow on behalf of your business.

Keep in mind

To help us assess your application properly, there are a few things we’ll need from you:

  • Proof that your business can make the repayments on time.
  • Details of any other business loans or finance you have.
  • A Guarantee if you’re a Limited Company or Limited Liability Partnership.
  • Permission to carry out a credit check.

How the application process works

Steps to take

We'll guide you through it

  1. Apply online or by phone
    We’ll ask you how much you want to borrow, over how long and what the loan is for.
  2. We'll assess
    We carry out our credit assessment on your application.
  3. And let you know
    We’ll let you know if you’ve been approved for a business loan and you could have your funds within 48 hours. If your application isn’t successful, we can talk to you about other options.

Small business loans explained

To help you choose the right type of loan for your business, here’s a guide to the key differences between them.

Fixed rate business loans

Fixed rate loans can be a good option for businesses that want certainty. When you take out a fixed rate business loan, the interest rate you agree doesn’t change during the fixed rate period. This means you always know how much you have to repay.

Variable rate business loans

A variable rate is available on loans that are £25,001 or more. The interest rate can change from month to month as it usually tracks the Bank of England Bank Rate. 

If the Bank of England Bank Rate goes up or down, so will the amount of interest you pay and your loan repayments.

Bank of England Bank Rate calculator

Bank of England Bank Rate calculator

The interest rate of your Business Loan may vary as the Bank of England Bank Rate changes. Find out more and see how rate changes could affect you.

Use our calculator

What do our customers say about small business loans? 

 

Jasun Envirocare

“The sector knowledge and support from Lloyds Bank has been invaluable. It’s allowed us to move forward with our ambitious growth plans and make adaptations to our business that will help us remain resilient.”

Graham Bentley, Chairman at Jasun Envirocare

Jasun Envirocare

Case Studies

Hear from more businesses we’ve worked side by side with to overcome challenges and succeed.

Browse more customer stories

Not a Lloyds Bank customer?

Get a Quote Online

New and existing customers, see how likely you are to get a business loan up to £25,000 without affecting your credit rating.

View indicative interest rates and repayment details. 99% of customers who used this tool and opened the same product received an offer rate that was the same, better or no more than 10% above their indicative quote.

Get a quote

Frequently Asked Questions

  • We’ve made our application process as straightforward as possible as possible because we understand the time pressures facing business owners. Find out more about how to get a business loan.

  • A lack of credit history isn’t necessarily a problem. Credit history is just one aspect of what we consider when assessing a loan or overdraft application.

    If you’re a start-up, getting the right finance is key to getting your new venture off the ground. Our guide to financing a start-up covers the essentials to give you the best chance of success.

  • You can apply for a Lloyds Bank Business Loan without having a Business Current Account with us. If your application is successful and you don’t want to open a Business Current Account with us, we’ll give you a fee-free Loan Servicing Account for you, which has no day-to-day fees or charges, until you’ve repaid your loan. You’ll be given this choice during your application.

    We offer the government-backed Recovery Loan Scheme to existing Lloyds Bank business customers and some businesses that don’t bank with us. If you have a primary business banking relationship with another provider, please speak to them for support first.

  • Yes, you can switch your Business Current Account to another provider and keep your Lloyds Bank business loan. If you choose to close the Business Current Account you hold with us, we’ll give you a fee-free Loan Servicing Account until you’ve repaid your loan.

  • When you apply for a business loan of up to £50,000, we may ask you for: 

    • Proof of any other existing finance.
    • Details of assets you could use as security, including the estimated value of your business.
    • A profile of your business including the experience and track record of its owners and management team.
    • Documents showing how much money you and/or the management team have personally invested in the business.

    Depending on the specific details of the loan you apply for, we may also ask you for:

    • Details of business assets and liabilities
    • Historic financial accounts
    • Management accounts
    • A business plan covering the borrowing term
    • Cashflow forecast covering the borrowing term.

  • We process your business loan application as quickly as possible. Funds should be in your account within 48 hours of your application getting approved.

 

Other ways to finance your business

Loans are only one way to finance your business. Depending on your circumstances and goals, another type of borrowing could be more suitable. To explore your options, check out the other types of finance we offer – from business overdrafts to asset finance.

Ways to borrow

Lending appeals

Appeals, has your Business Finance been declined? You can ask for the decision to be reviewed

The right type of funding can play a vital role in helping your business reach its potential. If your lending application is declined, we will work with the British Bankers’ Association to pursue any raised appeals.

Find out more about lending appeals

ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business. 

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action. 

All lending is subject to status. Security may be required.