Enquire about a small Business Loan 

Small Business Loans

Loans from £1,000 to £100,000 for small businesses.

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Why choose us for a small Business Loan?

Tailored loan amounts

Borrow between £1,000 and £100,000 with a personalised limit based on your business.

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. The figure is for illustrative purposes only.

    Our representative APR applies to unsecured loans for businesses with a turnover of up to £25 million.

What can you use your Business Loan for?

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Borrow and budget with confidence

Looking for a Business Loan with predictable repayments that you can plan around?

With a Fixed Rate Business Loan, the interest rate won’t change until the fixed rate ends - so it could be a good option that you can build a budget around.

Personalise your borrowing

Apply for a small Business Loan with confidence.

  • Discover your personalised borrowing limit before you apply.
  • Compare loan amounts and repayment options in real time.
  • Review clear repayment information up front, including total interest payable.
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Flex repayments with a variable rate

If you want to borrow more than £25,000, you can choose a small Business Loan with a variable rate - it usually tracks the Bank of England Bank Rate.

The interest rate can change from month to month, which could mean more flexibility for your business. If the Bank of England Bank Rate changes, your interest and repayment amount will change - and they could go up or down.

nesting coins illustration

Borrow and budget with confidence

Looking for a Business Loan with predictable repayments that you can plan around?

With a Fixed Rate Business Loan, the interest rate won’t change until the fixed rate ends - so it could be a good option that you can build a budget around.

footprints illustration

Personalise your borrowing

Apply for a small Business Loan with confidence.

  • Discover your personalised borrowing limit before you apply.
  • Compare loan amounts and repayment options in real time.
  • Review clear repayment information up front, including total interest payable.
calendar illustration

Flex repayments with a variable rate

If you want to borrow more than £25,000, you can choose a small Business Loan with a variable rate - it usually tracks the Bank of England Bank Rate.

The interest rate can change from month to month, which could mean more flexibility for your business. If the Bank of England Bank Rate changes, your interest and repayment amount will change - and they could go up or down.

Check if your business can apply

To apply for a Business Loan from us, you must:

  • Be at least 18 years old
  • Need to borrow £1,000 to £100,000
  • 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

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 the application process works

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.

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. 92% 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

Frequently Asked Questions

  • 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 £100,000, 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.

 

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.

Ways to borrow

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.

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.