Small Business Loans up to £25,000

Our Business Loan features

  • Borrow an amount that suits your needs
    Borrow between £1,000 and £25,000 with a secured or unsecured loan1
  • Choose your repayment terms
    Flexible repayment terms between 1-25 years
  • Simple pricing
    9.3% APR (variable or fixed) representative*
    No arrangement fees
    Base Rate (variable) from 10.4% APR** and Fixed Rate from 9.3% APR
  • Flexibility when you need it
    No early repayment costs
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Eligibility

Business Loans are available to new and existing Bank of Scotland customers.

You must:

  • Require the loan for business use
  • Apply for a minimum of £1,000
  • Be a sole trader, partner or director with authority to borrow on behalf of your business
  • Be aged 18 or over 

Get a Business Loan quote for up to £25,000

See how likely you are to get a Business Loan 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

New to Bank of Scotland?

If you’re looking for a loan up to £25,000 but you’re not a Bank of Scotland customer, get an online quote for a Business Loan without affecting your credit rating.

Alternatively, call our Business Management team on 0345 606 0286.

Lines are open 9am to 5pm Monday to Friday, except public holidays.

All lending is subject to status. Security may be required. 

Representative Example

*9.3% APR (variable or fixed) representative 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.

APR means annual percentage rate of interest charged against your loan which is a combination of Bank of England Bank Rate (variable) or Fixed Rate Cost of Funds (fixed) and an interest margin which is fixed for the term of the loan.

**Applicable to Base Rate Loans only:

10.4% APR based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £169.58 at an annual interest rate of 9.90% (variable). Total amount payable £10,174.80.

APR means annual percentage rate of interest charged against your loan which is a combination of Bank of England Bank Rate (variable) 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.

There is always the 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 rate. 

  • Do I need to have a Business Current Account with Bank of Scotland to apply for a Business Loan?

    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 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.

    We are only offering the government-backed Recovery Loan Scheme to existing Bank of Scotland business customers. If Bank of Scotland do not provide your main business relationship, please speak to your main bank for support in the first instance. 

    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. 

Larger Business Loans

If you’re looking to grow, take advantage of new opportunities, or invest in your business – our Larger Business Loans from £25,001 can help your business thrive.

More about Larger Business Loans

Helpful guides

Whether it’s for growth or development, there are many reasons why your business may need finance. We could provide help when you most need it.

Lending appeals

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.

1 A Guarantee may be required for Limited Companies and Limited Liability Partnerships.

Use our “Rate change calculator” to work out how a change in Bank Rate could affect your loan repayments.

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.