• Six lending misconceptions

    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.

    Question-NEGBanks 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.

    Loans-NEGThe 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.

    Lock-NEGSmall 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.

    Percentage-NEGRejection 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.

    MagnifyingGlass-NEGA 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.

    ArrowPound-NEGYou 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.

  • 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.


    *8 out of 10 relates to loans and overdrafts in the period November 2013 to November 2016.