Enquire about a Business Loan 

Benefits of our small business loans

Flexible amounts

Borrow between £1,000 and £50,000 as a secured or unsecured loan.

Repayment terms to suit your goals

Choose a repayment term from 1 year, depending on your business needs.

No early repayment fee

Repay your loan early without getting charged a fee.

Fast access to funds

Access your loan funds within 48 hours of your application being accepted.

No arrangement fees

Avoid paying extra – we don’t charge an arrangement fee when you take out a loan.

Online application for existing customers

Apply online quickly and easily if you already have an account with us.

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.

Are you eligible?

To apply for a business loan online, 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.

What you’ll need

To help us assess your application properly, there are a few things we’ll need from you:

  • Proof that your business can make the repayments on time.
  • Details of any other business loans or finance you have.
  • A Guarantee if you’re a Limited Company or Limited Liability Partnership.
  • Permission to carry out a credit check.

How to apply

1. Apply online or by phone

We’ll ask you how much you want to borrow, over how long and what the loan is for.

2. We'll assess

We carry out our credit assessment on your application.

3. And let you know

We’ll let you know if you’ve been approved for a business loan and you could have your funds within 48 hours. If your application isn’t successful, we can talk to you about other options.

Looking for a loan over £50,000?

To apply for a business loan over £50,000, please call 0345 300 0268.

Lines are open 8am – 6pm Monday to Friday, except on public holidays.

Small business loans explained

To help you choose the right type of loan for your business, here’s a guide to the key differences between them. 

Fixed rate business loans

Fixed rate loans can be a good option for businesses that want certainty. When you take out a fixed rate business loan, the interest rate you agree doesn’t change during the fixed rate period. This means you always know how much you have to repay.

Variable rate business loans

Available from £25,001, the interest rate on a variable rate business loan can change from month to month. This is because 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.

New to Bank of Scotland?

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

Or you can call us:

If you’re not a Bank of Scotland customer, call our Business Management Team on 0345 606 0286.
 
Lines are open 8am to 6pm Monday to Friday, except public holidays.

FAQs

  • A lack of credit history isn’t necessarily a problem. Credit history is just one aspect of what we consider when assessing a loan or overdraft application. 

    If you’re a start-up, getting the right finance is key to getting your new venture off the ground. Our guide to financing a start-up covers the essentials to give you the best chance of success. 

  • You can apply for a 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 give you a fee-free 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.  

  • Yes, you can switch your Business Current Account to another provider and keep your business loan. If you choose to close the Business Current Account you hold with us, we’ll give you a fee-free Loan Servicing Account until you’ve repaid your loan. There are no day-to-day fees or charges for these accounts provided there are sufficient funds to cover your repayments.

  • When you apply for a business loan of up to £50,000, we may ask you for: 

    • Proof of any other existing finance.
    • Details 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.
    • Documents showing how much money you and/or the management team have personally invested in the business.

    Depending on the specific details of the loan you apply for, we may also ask you for:

    • Details of business assets and liabilities
    • Historic financial accounts
    • Management accounts
    • A business plan covering the borrowing term
    • Cashflow forecast covering the borrowing term.
  • We process your business loan application as quickly as possible. Funds should be in your account within 48 hours of your application getting approved.

Bank Rate calculator

Bank Rate calculator

Find out how changes to the Bank of England Bank Rate could affect your monthly repayments with our Bank Rate calculator.

Use our calculator

Lending appeals

Appeals, has your Business Finance been declined? You can ask for the decision to be reviewed

The right type of funding can play a vital role in helping your business reach its potential. If your lending application is declined, we will work with the British Bankers’ Association to pursue any raised appeals.

More about lending appeals

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.

Authorisation can be checked on the Financial Services Register at www.fca.org.uk under the Firm Registration Number 169628.

Making sure you get a fair deal

We want you 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.

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.