Borrowing

We have fixed and base rate business loans to suit your needs. You can also get a business overdraft with your Business Current Account.


Business loans

Our Fixed Rate Loan has a fixed interest rate for the whole term, so you’ll know exactly what the repayments will be each month, allowing you to plan your finances better.

Our Base Rate Loan is linked to Bank of England Base Rate, so the interest rate that you pay will change as the base rate changes. This rate could be lower or higher than a Fixed Rate Loan, depending on what happens to base rate.

Plus, when you switch your Royal Bank of Scotland or Natwest loan to a TSB Business Loan, get 2.5% of the loan amount in cashback, paid within three months of the loan drawdown date, Ts&Cs apply

If we require security for the loan, we will waive our Security Fee. Security valuation and solicitor fees will also be paid by RBS (and not billed to you) i.e. if the same security is currently held with them. But in certain circumstances you may be required to pay towards these costs, we will let you know this when we discuss your borrowing requirements, Ts&Cs apply.
 

Features and benefits of a Fixed Rate Loan  Features and benefits of a Base Rate Loan
  • Loans from £1,000. 

  • 1-10-year terms available. 

  • 9.94% APR (fixed) representative (unsecured Fixed Rate Loan of £13,000 over 60 months with £250 arrangement fee). 

  • Repayment amount remains constant for term of the loan. 

  • Loan available on a secured and unsecured basis. 

  • If you repay part or all of your fixed rate** loan before the end of the agreed term there may be a break cost***. There is no break cost for Fixed Rate Loans up to £25,000 and for base rate linked loans. 

  • An arrangement fee will apply, up to 1.5% and dependent on the amount you borrow****.

  • Borrow from £25,001.

  • 1-25 year terms available.

  • Capital repayment holidays may be available up to two years (subject to status).

  • Security may be required.

  • An arrangement fee will apply, up to 1.5% and dependent on the amount you borrow.****

 
Representative Example 
Representative 9.94%APR (Fixed). Based on an assumed loan amount of £13,000 over 60 months, at the AIR of 9.06% p.a (Fixed) and an arrangement fee of £250. Monthly repayment £273.12 and total amount payable £16387.38. 
Simple Interest Rate 8.70%.
Lending is subject to approval, and we may require evidence to process the loan. 

Definitions:
Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term and includes the rate of interest and a £250 arrangement fee for a £13,000 loan. The APR will vary depending on the loan amount and term. 
Annual Percentage Rate Representative (APR Representative) is the advertised rate (or a lower rate) we reasonably expect at least 51% of people who are accepted for and enter into the loan agreement as a result of the advertising or marketing will pay.
Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a monthly basis. 
Simple Interest Rate is the rate at which daily interest accrues on the loan (not compounded).
 
**There is always a 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. 
 
***A break cost may be applied on Fixed Rate Loans, on any early or partial/full repayment of the loan. This could be substantial depending on the interest rate environment and your outstanding loan balance and term at the time. 
 
****An arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take out the loan. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%. 

Business overdrafts

If your business needs to dip in and out of extra funds at short notice, you can pre-arrange flexible borrowing in the form of an overdraft. You can agree a limit and interest rate upfront, so you'll always know where you stand. 

Features and benefits of our overdrafts

  • Borrow from £50 up to £300,000.

  • 6-day to 12-month terms available.

  • All overdrafts track the Bank of England Base Rate.

  • 9.9% EAR* (variable) representative. This is based on an overdraft balance of £7,000 over 12 months.

  • If you are switching your overdraft from Royal Bank of Scotland or NatWest, then you will pay no arrangement fee for the first year, and if you are currently paying a lower interest rate than we quote to you, we will match the price on your current overdraft for at least12 months. Terms and Conditions apply.

*EAR is the actual annual rate of an overdraft. It doesn’t take into account fees and charges. 
 
Borrowing is subject to status and lending criteria. The overdraft amount and rate we offer may differ, as it will depend on our assessment of your circumstances. 
 
The interest rate will change in line with any Bank of England Base Rate changes. The unauthorised borrowing rate is 19.9% EAR. 
 
All overdrafts are repayable on demand. 

Have this information to hand

  • How much you would like to borrow. 

  • The purpose of the finance.

  • How many months you would like to make the repayments over. 

  • Evidence of your current overdraft pricing, such as a copy of your facility letter or a snapshot of your internet banking.

Please speak to your Relationship Manager for further information and to apply.

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 can not comfortably afford to repay now and in the future to avoid the possibility of legal action.

TSB adheres to The Standards of Lending Practice for business customers which are monitored and enforced by the Lending Standards Board. Read more about our lending commitments to you.