Enquire about a Business Loan

Our business loans

Loans for small businesses

Loans for small businesses

Take out a secured or unsecured loan from £1,000 to £50,000 if your turnover is less than £3 million.

Small business loans

Commercial mortgages

Commercial mortgages

Upgrade or expand to new business premises with a commercial mortgage.

Commercial mortgages

Government-backed lending

Government-backed lending

Find out more about government-backed business loans.

Government-backed loans

Why get a business loan from us?

Flexible amounts

Business loans from £1,000.

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 money

Access loans within 48 hours of your 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
  • Need to borrow £1,000 to £50,000
  • 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

When you apply for a business loan, we may ask you for:

  • Details of any other existing finance.
  • Evidence 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.
  • Permission to carry out a credit check.

Types of business loans 

Fixed rate business loans

When you take out a fixed rate business loan, the interest rate doesn’t change during the fixed rate period. This means you always know how much you have to repay during this time.

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.

Finance for sustainability

Access discounted lending for green purposes through Bank of Scotland’s Clean Growth Financing Initiative.

Clean Growth Financing Initiative

Not a Bank of Scotland customer?

Get a quote

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

Bank of England Bank Rate calculator

Bank of England Bank Rate calculator

The price 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

Frequently Asked Questions

  • Yes, we are lending to businesses of all sizes. We are a responsible lender so not all loan and overdraft applications will be successful. However, we may be able to support your business with other finance options and guidance to other sources of funding or government-backed schemes.

  • Security for loans 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.

  • It depends on 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 that’s what your business needs to grow.

  • 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.

  • Yes, you can repay your variable rate loan early and you won’t have to pay an early repayment fee. If you have a fixed rate loan, you may have to pay an additional fee if you pay off the balance before the end of the term.

  • When you start repaying your business loan depends on what you agreed with us. You’re usually expected to make monthly repayments on a regular basis until the loan is paid off.

  • You can apply for a  Bank of Scotland 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 open a 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 Bank of Scotland 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.

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.

More ways to borrow

See how we compare in the market

Review alternative sources of business finance and compare products and services.

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.

Whilst all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Bank of Scotland for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstance. Specific advice should always be sought in each instance.