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We are keen to help businesses of all sizes access the funding and support needed to back their ambitions. Here, we answer some common misconceptions associated with bank lending.
Our responses are tailored for businesses turning over £1m or less. Visit our Loans and Finance pages to find out about lending for £1m-£25m.
Banks aren’t lending, especially to small businesses
We are lending. We approve eight out of ten loan and overdraft applications*. As a responsible lender not all loan and overdraft applications will be successful, but we may be able to support your business with alternative finance options and guidance to other sources of funding or government backed schemes.
We provide lending to support business of all sizes. Our range of funding solutions means that we may be able to help you find the right type of funding for each business need.
The application process is really complicated
We provide support with the application process because we understand the time pressures facing business owners. Our application process can be completed by phone or online.
Our website also provides business guides and a checklist to ensure applicants have all the information they need before they apply.
Visit our Loans and Finance page for more details.
Small business loans are secured against personal assets
Securitisation for lending isn’t always necessary or required. We will only seek security where appropriate, on a case by case basis, reflecting risk and type of facility. We can also support your ambitions through government led schemes, which are suitable for a range of different circumstances.
Rejection on a loan has a negative impact on credit ratings
During the application process, we will request your permission to carry out a credit assessment. Unless your credit history shows multiple applications, your credit rating shouldn’t significantly deteriorate. Lenders are likely to see occasional enquiries as part of a typical business process. If we do reject your application, we can discuss alternative finance options or refer you to our appeals process.
A lack of credit history is an issue
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. Our decision also considers business plans, the reason for the funding application, repayment strategies and the financial controls in place to support them. Our Finance application checklist may be able to support your application.
You can’t get a loan with a poor credit history
Lending decisions depend upon the circumstances of each business. We review each business on a case by case basis and assess their overall risk profile. We may be able to offer funding with certain terms or alternative sources of finance. The key thing is not to be deterred from trying if it’s what your business needs to grow.
All lending is subject to a satisfactory credit assessment.
*8 out of 10 relates to loans and overdrafts in the period November 2013 to November 2016.
A useful tool to help you find out which of our finance options may be right for your business.
Calculate monthly repayments with our easy to use tool.
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Bank of Scotland plc Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 169628.
We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.
The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com.
This site is intended for UK residents unless otherwise stated.
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