Loans and Finance
We approve 9/10 loan and overdraft applications*
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 £500k and renewal lending of up to £1m2.
Our pledge is to help you achieve your growth ambitions.
-
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.
Interest rate
Overdraft term
Overdraft amount
Fees
Interest rate
Tailored interest rates based on your business status. 7.66% 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.
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.
-
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.
-
Clean Growth Financing Initiative:
Clean Growth Financing Initiative provides discounted funding to help businesses transition to a lower carbon, more sustainable future. The funding supports a range of investments in sustainable business including small improvements in environmental impact through to large-scale renewable energy infrastructure.
Criteria
Purpose/ eligibility
Criteria
- 0% arrangement fee for Term Lending or 25 basis points reduction on the all in fixed rate for Asset Finance for green investment and capital expenditure.
- Available across Term Lending (£50K min.) and Asset Finance (£25K min.).
- Sterling lending for new / additional UK capex and investment.
- Loan purpose must be on eligibility list (please contact us for more information).
- Standard product terms & conditions apply.
Purpose/ eligibility
- Reduction in carbon and greenhouse gas emissions for core business processes, properties and infrastructure
- Energy efficiency, renewables, environmental sustainability improvements or production of related products
- Investment in low carbon vehicles and transport
- Investment to improve water efficiency
- Investment to reduce waste or improve recycling rates.
Compare our loan options:
|
Base Rate Loan |
Fixed Rate Loan4 |
Commercial Fixed Rate Loan5 |
|
|---|---|---|---|
|
Interest Rate |
Base Rate Loan5.1% APR3 (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 Loan45.1% APR3 (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% (fixed). Total amount payable £9,058.20 |
Commercial Fixed Rate Loan5Can be Fixed for periods from 1 year to the full term of the loan |
|
Loan Term |
Base Rate LoanUp to 25 years |
Fixed Rate Loan41 to 10 years |
Commercial Fixed Rate Loan51 to 25 years |
|
Loan Amount |
Base Rate Loan£1,000+ |
Fixed Rate Loan4£1,000 - £50,000 |
Commercial Fixed Rate Loan5£50,001+ |
|
Arrangement Fee |
Base Rate LoanUp to 1.5% of the loan amount7 |
Fixed Rate Loan4Up to 1.5% of the loan amount |
Commercial Fixed Rate Loan5Up to 1.5% of the loan amount |
|
|
Base Rate Loan |
Fixed Rate Loan4 |
Commercial Fixed Rate Loan5 |
*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
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.
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.