Business loans explained
To help you choose the right type of loan for your business, here’s a guide to the key differences between them.
Fixed rate business loans
Fixed rate loans can be a good option for businesses that want certainty. When you take out a fixed rate business loan, the interest rate you agree doesn’t change during the fixed rate period. This means you always know how much you have to repay.
Variable rate business loans
A variable rate is available on loans that are £25,001 or more. The interest rate can change from month to month as it usually tracks the Bank of England Bank Rate.
If the Bank of England Bank Rate goes up or down, so will the amount of interest you pay and your loan repayments.
Is your business eligible?
To apply for a business loan from us, you must:
Be at least 18 years old
Want to borrow at least £1,000
Need the money for business, not personal reasons
Be a sole trader, partner or director and authorized to borrow on behalf of your business.
Keep in mind
To help us assess your application properly, there are a few things we’ll need from you:
Proof that your business can make the repayments on time.
Details of any other business loans or finance you have.
A Guarantee if you’re a Limited Company or Limited Liability Partnership.
Permission to carry out a credit check.