Loans & Finance

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 applications^ǂ.

Business loans expandable section

Overdrafts

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

10.31% 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 9.75% per year over the Bank of England Rate	Fee £10 p/m usage fee	Other Information Free to set up overdraft Facility Only pay if you go overdrawn
Limit £5,001 - £25,000	Rate 9.75% per year over the Bank of England Rate	Fee 1.75% Annual Fee	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.

Mortgages expandable section
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.

Find out more

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.

Find out more
Other finance options expandable section
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.

Find out more

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.

Find out more
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.

Find out more
Interest rate expandable section

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:

	Base Rate Loan	Fixed Rate Loan^¥	Commercial Fixed Rate Loan^¥
Interest Rate	Base Rate Loan 5.1% 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 Loan 1 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+

^*Applicable for existing customers of 6 months or more: instant online decisions available on overdrafts and loans up to £25,000.

^** The representative APR is an illustration of the rate that the majority of customers will receive. If a loan is described as having a particular representative APR, then we expect to offer that rate or better to at least 51% of the applicants we accept. Other customers may get a different rate based on their individual circumstances. Our representative APR applies to all unsecured loans with a borrowing amount of up to £25,000 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.

¹Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage of the total amount of credit. It represents the actual yearly cost of credit over the loan term and includes not only the interest but also any other charges you have to pay, for example, an arrangement fee. The APR will vary depending on the loan amount and term.

Lending appeals

Lending Standards and support

Grow your business

Financing for growth

Ranking Agreement

Independent comparison tools

The business finance guide

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.

We adhere to The Standards of Lending Practice which are monitored and enforced by the Lending Standards Board (LSB)

ǂ9 out of 10 is based on formal credit applications and is an average across the period January 2017 - December 2017.

^¥ There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.