Cost of living crisis

Many people across the UK are facing a rising cost of living crisis, with the combined effect of rising food and fuel prices and rising inflation rates.

If you feel like your business will be affected, we have a range of options in place that could help. These options are available depending on your circumstances, for further information please get in touch:

  • Overdrafts (subject to status) 14.44% EAR* representative based on assumed amount of £7,000 over 12 months: an overdraft or an increase to an existing overdraft limit, could help you manage your cashflow in the short term.
  • Term loans* (subject to status) 9.9% APR representative (fixed). Based on an assumed loan amount of £13,000 over 60 months at the AIR of 9.06% p.a (fixed). Arrangement Fee £250. Monthly repayment £273.12. Total amount payable £16387.38:
    • We have a range of supporting features, including repayment holidays for new loans (security may be required). Just remember if you take a repayment holiday you will pay more interest overall.
    • If you have an existing loan and are worried about meeting payments, we may be able to offer support to you as well, please get in touch.
  • If your business is already affected and you are in financial difficulty, we can offer additional support in helping you.

Bounce Back Loan

  • If you’re unable to make a repayment on your Bounce Back Loan we will provide timely, clear and adequate information to ensure you understand the amount you have missed, what can be done to remedy it, when you need to make any missed payments by, and how this could affect your future repayments;
  • If you default on your Bounce Bank Loan, we will provide you with information about any proposed action we might take, before we take it;
  • We will provide you with options for help and assistance, including sources of free independent advice.
We will also:
  • Monitor repayments that you make during the life of your Bounce Bank Loan and take action to help you where there are signs of actual or possible repayment difficulties;
  • Make adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan, if we identify or believe you are vulnerable;
  • Give you a reasonable period of time to remedy any breach if you default under your Bounce Back Loan. We will not treat the default as an event of default if you remedy the default within the period of time we give you;
  • Not charge you any fees in relation to your Bounce Back Loan (including on default) or any default interest (except that we may continue to charge interest at the rate of 2.5% per annum if your Bounce Back Loan is not repaid when due until such time as it is repaid).

If you miss your repayments under the Bounce Back Loan, TSB would also have the right to repay any debt outstanding from other accounts that you may hold with us. Defaulting on your loan could negatively affect your credit score or rating with credit reference agencies, and make it more difficult for you to borrow in the future.

Complaints

Please contact us.

Breathing Space Scheme

Breathing Space, officially called the Debt Respite Scheme, is a government scheme which could help relieve some of the pressure and stress caused by being in debt.

You could get up to 60 days’ respite from interest, fees and court action to give you time to deal with your debt. Visit Breathing Space. Debt Respite Scheme Advice. StepChange for more information.

Support from TSB 

At TSB, we know that borrowing money can be daunting, and that industry scandals have impacted trust in bank lending. We have therefore set out clear key principles we will follow to help businesses that get into financial distress.

If a business banking customer is experiencing financial difficulty, we will seek to help during this challenging time by providing specialised support to help return the company to viability in a timely and cost-effective manner, wherever possible. We seek to act honestly, fairly, and professionally in all our interactions with business customers. We do however need the customer’s co-operation and responsiveness to work together to achieve the desired outcome.

Where we are providing support to a business in financial difficulty:

  1. We will be fair and transparent in what we do. We will keep the customer informed of the course of action we are taking and why. We are open to challenge, and will manage complaints sensitively in line with our defined procedures.

  2. We will provide reasonable time for the customer to return their business to health, and will offer flexibility to existing arrangements if it will help to repair the situation. We will continue to provide the same day to day banking services wherever possible, and will consider requests to pay in excess of agreed limits where this involves critical payments identified by the client, such as staff salaries. Affordability and the longer term health of the client will always be a consideration in such decisions.

  3. We will not raise loan margins on existing facilities if a business is experiencing financial difficulty. Any fees we charge on restructuring facilities (for example extending the term of the existing loan) or additional facilities (for example where the business needs additional funding to support recovery) will be in line with our standard rates (i.e. the matrix of prices that applies to the wider customer base). 

  4. We will not default a business if it is up to date on its loan payments, but a valuation change impacts a loan to value covenant and other covenants are not breached.

  5. We will not demand full repayment or remove an overdraft outside of its renewal cycle, unless a business has breached our terms of lending, or is demonstrating wider financial distress that would lead this to be an appropriate approach for the customer.

  6. If we need to engage any third parties in support of an agreed strategy at the cost of the customer, our customers will be fully informed of the reasons why and costs involved in advance of work being undertaken.

And let’s be clear, our business support area will never be a profit centre, and our partners will never be incentivised for additional income earnt on accounts in business support.

Independent Money Advice Organisations

You can get free, independent money advice from any of the following:

MoneyHelper  Phone: 0300 500 5000 

Advice UK  Phone: 0300 777 0107  

Debt Action NI | Minding Your Head  Phone: 0800 917 4607 

Citizens Advice  You can get the phone number of your local bureau online or from a local phone directory. 

Citizens Advice Scotland  Phone: 0131 550 1000 

Money Advice Scotland  Phone: 0141 572 0237 

Business Debtline  Phone: 0800 197 6026

StepChange Debt Charity   Phone: 0800 138 1111 

You can get free, independent money advice from any of the following:

MoneyHelper  Phone: 0300 500 5000 

Advice UK  Phone: 0300 777 0107  

Debt Action NI | Minding Your Head  Phone: 0800 917 4607 

Citizens Advice  You can get the phone number of your local bureau online or from a local phone directory. 

Citizens Advice Scotland  Phone: 0131 550 1000 

Money Advice Scotland  Phone: 0141 572 0237 

Business Debtline  Phone: 0800 197 6026

StepChange Debt Charity   Phone: 0800 138 1111 

How we will support business borrowers when they need it most

At TSB, we know that borrowing money can be daunting, and that industry scandals have impacted trust in bank lending. We have therefore set out clear key principles we will follow to help businesses that get into financial distress.

If a business banking customer is experiencing financial difficulty, we will seek to help during this challenging time by providing specialised support to help return the company to viability in a timely and cost-effective manner, wherever possible. We seek to act honestly, fairly, and professionally in all our interactions with business customers. We do however need the customer’s co-operation and responsiveness to work together to achieve the desired outcome.

Where we are providing support to a business in financial difficulty:

  1. We will be fair and transparent in what we do. We will keep the customer informed of the course of action we are taking and why. We are open to challenge, and will manage complaints sensitively in line with our defined procedures.

  2. We will provide reasonable time for the customer to return their business to health, and will offer flexibility to existing arrangements if it will help to repair the situation. We will continue to provide the same day to day banking services wherever possible, and will consider requests to pay in excess of agreed limits where this involves critical payments identified by the client, such as staff salaries. Affordability and the longer term health of the client will always be a consideration in such decisions.

  3. We will not raise loan margins on existing facilities if a business is experiencing financial difficulty. Any fees we charge on restructuring facilities (for example extending the term of the existing loan) or additional facilities (for example where the business needs additional funding to support recovery) will be in line with our standard rates (i.e. the matrix of prices that applies to the wider customer base). 

  4. We will not default a business if it is up to date on its loan payments, but a valuation change impacts a loan to value covenant and other covenants are not breached.

  5. We will not demand full repayment or remove an overdraft outside of its renewal cycle, unless a business has breached our terms of lending, or is demonstrating wider financial distress that would lead this to be an appropriate approach for the customer.

  6. If we need to engage any third parties in support of an agreed strategy at the cost of the customer, our customers will be fully informed of the reasons why and costs involved in advance of work being undertaken.

And let’s be clear, our business support area will never be a profit centre, and our partners will never be incentivised for additional income earnt on accounts in business support.

Need to talk?

If you are an existing business customer who wishes to talk about managing debt, then please get in touch with us. We have a phone number for existing customers as well as our chat service if you wish to use Live Chat to get information. All details can be found on our contact page.

Useful documents

Please find  key documents and further information on our legal page.