Business loans and finance

We offer a range of business loans, including fixed rate loans, fixed to variable rate loans, base-rate linked loans and commercial mortgages.

If you’re a sole trader, partnership, LLP, limited partnership, or limited company, then you’ll be able to apply for a business loan. Your business must be based in England, Scotland or Wales. We won’t be able to offer you a loan if your business is based in Northern Ireland. If you’re a sole trader, you need to be over 18. You cannot apply for a loan if you’re a charity, club, society, association, Public Limited Company, or a business that’s not trading.

If you’d like to discuss a business loan, or ask any questions about eligibility, please give us a call on 0345 835 3858. We’re here 8am to 6pm Monday to Friday and 9am to 2pm Saturday.

A business loan is a common way for a business to raise finances. They apply to borrow a sum of money from a lender for a specific purpose and then agree the amount and timing for repayments and the interest that will be paid.

At TSB, we offer the following types of business loans:

1. Fixed rate loans are when the interest rate is fixed and will not change throughout the loan term
2. Fixed to variable loans are when the interest rate is fixed for a certain period then at the end of that period the rate changes to a variable rate.
3. Base rate linked loans, are a type of variable loan where the interest rate is linked to, and will change with, the Bank of England’s base rate. For example, if the base rate increases by 0.25%, then the interest on the business loan will also increase by 0.25%.
4. Commercial Mortgages are solely for purpose of buying a property, which will act as security for the loan.

An unsecured loan doesn’t use business or personal assets, like a property, as security in case the loan can’t be repaid.

Typically, unsecured loans offer lower amounts with higher interest rates than secured loans. This is because it’s riskier for the lender as they can’t reclaim the value from any secured assets.

Interest rates

The interest rates we charge vary based on how much we’re lending, the repayment term, the risk rating of the business/industry, and the value of any security provided.

Fees

Charges

If you repay your loan early in full or in part you may have to pay us a charge called a ‘break cost’ to do this. Break costs apply to fixed rate and fixed to variable business loans over £25,000 that are settled early in full or in part in the fixed rate period.

We can provide a quotation for the products that meet the business needs so that a suitable product can be selected. Once selected the product application will be assessed by us. We will keep you informed of progress and let you know if additional information is required.

The time between applying for a business loan and funds being available can vary. To help speed this process up, it’s a good idea to have all the relevant information available. See our Finance Application Checklist (PDF) for all the information we’ll need about your business when you apply.

If you’re approved, we’ll send a loan agreement to sign, and when signed, we’ll set up your loan. Once set-up, we’ll provide a repayment schedule for your loan which will show the dates and monthly repayments. To repay the loan, we will take monthly payments from your servicing account. The servicing account must have enough money in it by 2:30pm on the repayment day to avoid the loan going into arrears. The servicing account can either be a TSB business current account or a specific servicing account set up for the business loan.

If you need to change the servicing account, please call us on 0345 835 3858. We’re here 8am to 6pm Monday to Friday and 9am to 2pm on Saturdays.

Yes. Loan overpayments can be made in full or in part, but remember break costs apply to fixed rate and fixed to variable rate business loans over £25,000 that are settled early in full or in part in the fixed rate period.

If you pay in part, your payments will be used to reduce the balance of the loan. You will have the option of reducing the number of repayments or reducing your regular repayment amount.

If you tell us you’d like to repay your loan in full, we’ll send you a settlement balance. This is the amount you’ll need to pay to close your loan.

After the loan is settled in full, you won’t be charged any further interest after settlement.

If you’d like to repay your loan early, or if you want to refinance your existing loan, please give us a call on 0345 835 3858. We’re here 8am to 6pm Monday to Friday, and 9am to 2pm on Saturdays.

Remember, if you open a new business loan to refinance an existing one, an arrangement fee would apply.