Loans and Finance

Dedicated finance to back your ambition

Whatever your business needs to help achieve its goals, from improving cash flow to longer-term borrowing, we’re here to help.

Our pledge is to help you achieve your growth ambitions. That’s why we have continued to approve nine out of ten business loan and overdraft applications1.

Guided by their knowledge of your unique business circumstances, our Relationship Managers can approve new borrowing of up to £1m and renewal lending of up to £1m2.

Our pledge is to help you achieve your growth ambitions.

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer 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 initial quote.

Get a quoteSee how likely you are to get a Business Loan or Overdraft.
  • Business Overdraft

    • Make sure extra funds are there when you need them.
    • Only pay interest on the funds you use.
    • Apply for a limit that suits your business.

    Find out more

    Can I borrow for my business?

    See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer 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 initial quote.

    Get a quoteSee how likely you are to get a Business Loan or Overdraft.

    Interest rate

    Overdraft term

    Overdraft amount

    Fees

    Interest rate

    Tailored interest rates based on your business status. 8.35% EAR representative* (Varies with Bank of England Bank Rate) for unsecured overdrafts up to £25,000. For all overdrafts above £25,000, and secured overdrafts, rates are available on request.

    Overdraft term

    Up to 12 months

    Overdraft amount

    £500+

    Fees

    Please be aware that charges apply

    You will pay an arrangement fee of up to 1.5% on the amount of your overdraft, subject to a minimum fee of £250**. Subsequent renewals will include an arrangement fee of 1%, subject to a minimum fee of £200. We will discuss full terms with you before any overdraft is taken out.

    **The minimum fee is applicable in order to cover the administration cost of arranging smaller overdrafts.

    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.

    *The representative EAR is an illustration of the rate that the majority of customers will receive. If an overdraft is described as having a particular representative EAR 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 EAR applies to all unsecured overdrafts with a borrowing amount of up to £25,000 for businesses with a turnover from £1million up to £25 million. This figure is not necessarily the rate you will be receiving and is for illustrative purposes only.

  • Commercial Mortgage

    When you’re looking for new business premises, talk to us.  Our commercial mortgages are discounted through the Funding for Lending scheme.

    • 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.

    • Interest rate reduced by 1% as part of the Bank of Scotland Funding for Lending Scheme.
    • 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

  • Enterprise Finance Guarantee

    • Loans from £25,001 to £600,000 over one to 10 years or, Loans from £600,001 to £1,2 million over one to 5 years.
    • Variable or fixed rate1 interest terms, dependant on circumstances.
    •  Flexible draw down arrangements.
    • Benefit from capital repayment holidays, available in certain circumstances.
    • To apply for Enterprise Finance Guarantee, your business's turnover must not exceed £41 million.

    Find out more

  • 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

  • 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 0.75% (effective from 2 August 2018).

    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 Loan4

Capped Base Rate Loan5

Commercial Fixed Rate Loan4

Interest Rate

Base Rate Loan

9.3% APR3 (variable) representative*

Representative example: 9.3% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £165.68 at an annual interest rate of 8.90% (variable). Total amount payable £9,940.80

Fixed Rate Loan4

9.3% APR3 representative*

Representative example: 9.3% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £165.68 at an annual interest rate of 8.90% (fixed). Total amount payable £9,940.80

Capped Base Rate Loan5

Varies with Bank of England Bank Rate

Commercial Fixed Rate Loan4

Can be Fixed for periods from 1 year to the full term of the loan

Loan Term

Base Rate Loan

Up to 25 years

Fixed Rate Loan4

1 to 10 years

Capped Base Rate Loan5

5 to 25 years

Commercial Fixed Rate Loan4

1 to 25 years

Loan Amount

Base Rate Loan

£1,000+

Fixed Rate Loan4

£1,000 - £50,000

Capped Base Rate Loan5

£50,001 - £1,000,000

Commercial Fixed Rate Loan4

£50,001+

Arrangement Fee

Base Rate Loan

Up to 1.5% of the loan amount

Fixed Rate Loan4

Up to 1.5% of the loan amount

Capped Base Rate Loan5

Up to 1.5% of the loan amount

Commercial Fixed Rate Loan4

Up to 1.5% of the loan amount

Base Rate Loan

Fixed Rate Loan4

Capped Base Rate Loan5

Commercial Fixed Rate Loan4

Can I borrow for my business?

See how likely you are to get a Business Loan or Overdraft without affecting your credit rating. View indicative interest rates and repayment details. 99% of customer 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 initial quote.

Get a quoteSee how likely you are to get a Business Loan or Overdraft.

*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.

To discuss your lending needs or apply call 0345 300 0268

Choosing the right finance

Not sure what funding options best suit your needs? Find out what the right finance options are for your business.

Invoice Financing

Improve your cashflow options. Whether you’re planning to expand or need to deal with day-to-day cashflow, we’re here to help. Our invoice Finance options mean you can release up to 90% of the value of your invoices, typically within 24 hours.

Making sure you get a fair deal

We want to find a product that’s right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what’s expected of us, the lender, and you, the borrower.

 

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.

1 9 out of 10 is based on formal credit applications and is an average across the period January 2017 - December 2017.

2 Lending discretion of Relationship Managers varies and some applications may be referred for further credit checks. All lending is subject to a satisfactory credit assessment.

3 Annual 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.

4 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 level.

5 A Capped Base Rate loan is a variable rate loan where the Total Interest Rate payable will not go above a maximum level or “Capped Rate” during the Capped Rate Period. The Capped Rate Period is five (5) years, and this may be equal to or less than the full term of the loan.

6 Capital repayment holidays available in certain circumstances only.