Enquire about a Business Loan 

Small business loans

Loans from £1,000 to £50,000 for small businesses.

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Why choose us for a small business loan?

Flexible amounts

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

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 your money

You can access your loan within 48 hours of the application being accepted.

Fixed Rate 11.2% APR representative* on loans from £1,000 to £50,000

APR for loans above £50,000 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.

Is your business eligible?

To apply for a business loan from us, 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.

Keep in mind

When you apply for a business loan, we may ask you for:

  • Details of any other existing finance.
  • Evidence 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.
  • 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.

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.

Bank of England Bank Rate calculator

Bank of England Bank Rate calculator

The interest rate of your Business Loan may vary as the Bank of England Bank Rate changes. Find out more and see how rate changes could affect you.

Use our calculator

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. 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

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 £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.

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.