Business Lending rates
Bounce Back Loans
- For loans from £2,000 to £50,000 (up to 25% of business turnover).
- Nothing to pay for the first 12 months.
- Loan repayment term of six years
- Fixed Rate of 2.5% per annum*** after the first 12 months
- Early repayment is permitted at any stage without early repayment fees
***Simple Interest Rate is the rate at which daily interest accrues on the loan (not compounded)
Business loans
Representative example
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.
*Annual Percentage Rate Representative (APR Representative)
9.94% APR representative (fixed)
**Annual Interest Rate (AIR)
9.06% % p.a (fixed)
***Simple Interest rate
8.70%
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)
|
Business Loan Arrangement Fees |
|
|---|---|
|
Amount of borrowing |
Arrangement Fee |
| Up to £5,000 | £100 |
| £5,001-£10,000 | £175 |
| £10,001-£15,000 | £250 |
| £15,001 & over | 1.5% (min £250) |
Please note: Borrowing is subject to status and lending criteria. The loan amount and rate we offer may differ as it will depend on our assessment of your circumstances.
Unsecured loans available from £1,000 to £25,000 over 1 to 10 years (fixed rate loans)
1 APR means Annual Percentage Rate. This figure is based on the interest rate and how you repay the amount borrowed (the term of the loan, timing and repayment amounts). You can use it to compare different loan offers.
Rates correct at 1 February 2019
Business overdrafts
Coronavirus Business Interruption Loan Scheme Overdraft
CBILS Business Overdraft 5.12% EAR representative 1
Annual interest rate 5% 2
Please note: borrowing is subject to status and lending criteria. The overdraft rate we offer may differ as it will depend on our assessment of your circumstances. A lower interest rate applies where tangible security (e.g. commercial property) is available. Please note that you don’t have to pay any interest or fee for first 12 months.
1 EAR means the Equivalent Annual Rate, it includes the Bank of England Base Rate and assumes that interest is compounded monthly. It does not take into account of any other charges for example unauthorised borrowing fees. For further information please see ‘Your account charges explained’ within Business Accounts
2 Inclusive of Bank of England Bank Rate %, which can be found at https://www.bankofengland.co.uk/
View our business tariffs and charges here.
The unauthorised borrowing rate is 19.90% pa. This rate is not linked to the Bank of England Bank Rate and can be changed by the bank at any time in accordance with the terms and conditions of the account.
Business overdrafts
Business overdraft of £7,000 over 12 months 10.65% EAR1 representative
Annual interest rate 10.16%2
An arrangement fee, in this example £175, is taken when the overdraft is agreed.
Please note: 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.
1 EAR means the Equivalent Annual Rate, it includes the Bank of England Base Rate and assumes that interest is compounded monthly. It does not take into account of any other charges for example unauthorised borrowing fees. For further information please see ‘Your account charges explained’ within Business Accounts
2 Inclusive of Bank of England Bank Rate %, which can be found at https://www.bankofengland.co.uk/
View our business tariffs and charges here.
The unauthorised borrowing rate is 19.90% pa. This rate is not linked to the Bank of England Bank Rate and can be changed by the bank at any time in accordance with the terms and conditions of the account.
| Overdraft Arrangement Fees | |||
|---|---|---|---|
| Period of facility | |||
|
Facility size |
0-3 Months |
4-6 Months |
7+ Months |
| Up to £5,000
|
£100 |
£100 |
£100 |
|
£5,001-£10,000 |
£175 |
£175 |
£175 |
|
£10,001-£15,000 |
£250 |
£250 |
£250 |
|
£15,001 & over |
0.40% |
0.75% |
1.5% |
Business Credit Card
We are no longer accepting new credit card applications.
Representative Annual Percentage Rate (APR) 22.4% (variable)
16.30% p.a. (variable) for Cash Withdrawals and all other Transactions.
Credit limits available between £1,000 and £10,000 depending on our assessment of your circumstances.
Please note: Other fees and charges may be applicable for example late payment fees or for cash withdrawals. For more information please see Business Credit Card
-
Previous Rates and Rates no longer available
% per annum* Rate A 10.16% Rate B 8.96% Rate C 7.88% Rate D 7.16% Unauthorised borrowing 19.90% These interest rates are effective from 1 April 2020.
% per annum* Rate A 10.81% Rate B 9.61% Rate C 8.53% Rate D 7.81% Unauthorised borrowing 19.90% These interest rates were effective from 3 September 2018.
*Annual Rate ignores interest compounding.
Interest rates may vary from time to time in line with the Bank of England Bank Rate.
The unauthorised borrowing interest rate is not linked to the Bank of England Bank Rate and can be changed by the bank at any time in accordance with the terms and conditions of the account.
Business overdrafts rates prior to 3 September 2018
% per annum* Rate A 10.56% Rate B 9.36% Rate C 8.28% Rate D 7.56% Unauthorised borrowing 19.9% These interest rates are effective from 1 December 2017.
Business overdrafts rates prior to 1 December 2017.
% per annum* Rate A 10.31% Rate B 9.11% Rate C 8.03% Rate D 7.31% Unauthorised borrowing 26.40% These interest rates are effective from 5 August 2017.
Business overdrafts rates prior to 5 August 2016
% per annum* Rate A 10.56% Rate B 9.36% Rate C 8.28% Rate D 7.56% Unauthorised borrowing 26.40% *Annual Rate ignores interest compounding.
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