Apply for the business loan or finance your company needs with TSB. We offer competitive rates to help you cover important costs, such as working capital or expansion.
Compare our business loans and finance
Base Rate Loan
- Rates linked to Band of England Base Rate
- Borrowing from £25,001
- 1-25 year terms available
Fixed Rate Loan
- Fixed rate for the length of your loan
- Borrow from £1,000 to £25,000 or £100,001 to £1,000,000
- 1 – 10 year terms available
Overdraft
- A flexible finance option
- Pre-agreed rates and overdraft amounts
- Only pay interest on what you use
Commercial mortgage
- Mortgages start from £25,001
- Loan terms up to 25 years
- Borrow up to 70% of the property’s value
Funding Options
Need more specific funding? We work with Funding Options to match you with lenders that are uniquely tailored to your business.
Pay As You Grow
Bounce Back Loan borrowers can use the Pay As You Grow scheme to give you more time and flexibility to pay back your loan.
Existing Bounce Back Loans
Need more information about your Bounce Back Loan, including Pay as You Grow?
FAQs
If you’re a sole trader, partnership, limited liability partnership, limited partnership, or limited company, then you’ll be able to apply for a business loan, an overdraft or both. Your business must be based in England, Scotland or Wales. We won’t be able to offer you a loan or an overdraft if your business is based in Northern Ireland. You must be over 18 and a Sole Trader, Partner or Director. You cannot apply for a loan if you’re a charity, club, society or association Public Limited Company. You cannot apply for borrowing for a business that’s not trading.
To apply for a business loan, you must already have an existing TSB account. To apply for an overdraft, you need a TSB Business Current Account.
If you’d like to discuss business loans or overdrafts, 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.
Business loans
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:
- Fixed rate loans are when the interest rate is fixed and will not change throughout the loan term
- Fixed to Base Rate linked 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 Base Rate linked variable loan
- 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%
- Commercial Mortgages are solely for purpose of buying a property, which will act as security for the loan
Business overdrafts
An arranged business overdraft is an agreed facility that provides flexible borrowing when you need it, helping with cashflow when your business needs extra funds at short notice. You only pay interest on the funds you use.
Terms are usually available for up to 12 months with an arrangement fee upfront. We’ll review your overdraft periodically (at least annually) to ensure it still meets your business needs.
An overdraft is repayable on demand at any time even before the end of the term. For example, we may ask you to repay your overdraft if your circumstances change.
Security
Security may be required for your business loan or overdraft depending on your request and the borrowing amount required.
Typically, security over an asset, usually property, will be required for amounts of £25,000 or more. A director’s guarantee will be required for limited companies borrowing.
Please contact us if you have further questions in relation to security.
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.
Unsecured loans and overdrafts don’t use business or personal assets, such as a property, to secure the borrowing.
Typically, unsecured business loans and overdrafts offer lower facility amounts with higher interest rates than secured borrowing. This is because it’s riskier for the lender as they can’t reclaim the value from any secured assets in the event the borrowing cannot be repaid.
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
| Amount borrowed | Arrangement fee |
|---|---|
| Up to £5,000 | £100 |
| £5001 - £10,000 | £175 |
| £10,001 - £15,000 | £250 |
| Over £15,000 | 1.5% (minimum £250) |
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.
Loans that are no longer available such as European Investment Bank (EIB) and National Loan Guarantee Scheme (NLGS) Loans operate in the same way as the business loans that we offer.
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.
