Loans & Finance
Got an idea to move your business forward?
Whatever direction you decide to take your business we can support you in finding the right lending solution. We say yes to 9 out of 10 loan and overdraft applicationsǂ.
-
Business Overdraft
- Free to set up an overdraft with a limit of £5,000 or less.
- Simple Pricing.
- Apply for a limit that suits your business needs.
Business Overdraft Pricing
- 11.52% EAR representative* (varies with Bank of England Bank Rate) for unsecured overdrafts up to £25,000.
Limit
Rate
Fee
Other Information
Limit
£5,000 or less
Rate
10.85% per year above the Bank of England Rate
Fee
£12 p/m usage fee
Other Information
- Free to set up overdraft Facility
- Only pay if you go overdrawn
Limit
£5,001 - £25,000
Rate
10.85% per year over the Bank of England Rate
Fee
1.99% Annual Fee (min £120)
Other Information
- Only pay interest on funds you use
Limit
£25,001 +
Rate
Tailored Rates
Fee
Annual Fee
Other Information
- Pricing discussed on application
Important information
EAR stands for equivalent annual rate. It is the rate you would pay if you go overdrawn to the full limit of your facility for the entire year. It takes into account the interest rate you are charged as a result and how often it’s charged – in this case interest is calculated daily and charged monthly. It then takes into account the effect of compounding – charging interest on interest – on your debt. Charges for unarranged overdrafts are charged separately.
* ‘Representative’ means the rate at or below which the Provider reasonably expects, at the date on which the publication, display or communication is made, that credit would be provided under for at least 51% of the credit agreements which will be entered into as a result of the publication, display or communication.
Our representative EAR applies to all unsecured overdrafts with a borrowing amount of up to £25,000 for businesses with a turnover of up to £3 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.
Overdrafts are repayable on demand.
-
Commercial Mortgage
- When you’re looking for new business premises, talk to us.
- Apply for a minimum of £25,001 and choose a loan term from three to 25 years.
- Borrow up to 70% of the property value and in some cases we can lend more.
- Choose between a Bank of England Bank Rate linked or fixed interest rate.
- Capital repayment holidays may be available.
If you wish to borrow on other terms we may still be able to help you.
Residential Buy-to-let Mortgage
- If you'd like to grow your capital or rental income by extending your property portfolio, talk to us about our buy-to-let mortgages.
- Apply for a minimum of £25,001 and choose a loan term from three to 25 years.
- Borrow up to 70% of the property value and in some cases we can lend more.
- Choose between a Bank of England Bank Rate linked or fixed interest rate.
- Capital repayment holidays may be available.
If you wish to borrow on other terms we may still be able to help you.
-
Asset Finance
- Funding for all types of assets from farm vehicles to plant and office equipment.
- Competitive interest rates.
- Response to funding requests within 24 hours.
- A fast and efficient phone-based service.
Invoice Financing
- Receive up to 90% of the value of unpaid invoices, typically within 24 hours.
- Pay suppliers without having to wait to receive payment from your customers.
- Fund growth with less risk by borrowing an amount that can increase as your turnover grows.
- Use business assets to finance growth.
Vehicle Contract Hire
- Competitive monthly rentals.
- Reduced operational risk: pay a budget-friendly, fixed monthly rate.
- Can be VAT efficient for most companies.
- Potential to free up business capital.
- Optional maintenance to reduce administration costs.
- Vehicles are 'off balance sheet' and therefore not seen as a fixed asset.
-
The Bank of England Bank Rate is the official Bank Rate set by the Bank of England which can affect interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.
The Bank Rate has been consistently low for a number of years.
However as the UK economy improves, the Bank of England is likely to increase the official Bank Rate.
The current Bank of England Bank Rate is 0.10% (effective from 19th March 2020).
Changes in the Bank Rate could affect payments on any accounts you may hold with us, such as loans, overdrafts, commercial mortgages or deposits.
Use our Rate change calculator to work out how a change in Bank Rate could affect your loan repayments.
Compare our loan options:
|
Interest Rate |
Base Rate Loan5.1% APR1 (variable) representative* Representative example: 5.1% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £150.97 at an annual interest rate of 5.0% (variable). Total amount payable £9,058.20 |
Fixed Rate Loan¥5.1% APR¹ (fixed) representative* Representative example: 5.1% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £150.97 at an annual interest rate of 5.0% (fixed). Total amount payable £9,058.20 |
Commercial Fixed Rate Loan¥Can be Fixed for periods from 1 year to the full term of the loan |
|
Loan Term |
Base Rate Loan1 to 25 years |
Fixed Rate Loan¥1 to 10 years |
Commercial Fixed Rate Loan¥1 to 25 years |
|
Loan Amount |
Base Rate Loan£1,000+ |
Fixed Rate Loan¥£1,000 - £50,000 |
Commercial Fixed Rate Loan¥£50,001+ |
Frequently Asked Questions
Do I need to have a Business Current Account with Bank of Scotland to apply for a Business Loan?
No, you can apply for a Business Loan without having a Business Current Account with us. If your application is successful and you do not wish to open a Business Current Account with us, we will open a fee-free Loan Servicing Account until your Business Loan is repaid. You will be given this choice during your application.
If you are applying for any of the UK government lending schemes you must have an existing Bank of Scotland Business Current Account or Loan Servicing Account to apply, full details can be found on our government-backed lending hub.
Can I switch my Bank of Scotland Business Current Account after taking out a Business Loan?
Yes, you are able to switch your Business Current Account to another provider while retaining your Business Loan. If you choose to close your Business Current Account with us, we will open a fee-free Loan Servicing Account until your Business Loan is repaid.
An entrepreneur guide
Find information and inspiration from a variety of experts.
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.
We adhere to The Standards of Lending Practice which are monitored and enforced by the Lending Standards Board (LSB)
ǂ