Kristina Fox
Connor CampbellMany or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.
If you are a small business with a turnover of less than £3 million, you may be able to access a business loan worth between £1,000 and £50,000 from Lloyds Bank.
There are no early repayment fees, so you have the flexibility to pay off the loan in full before the term ends at no extra cost. Lloyds also has a range of customer service options, including online, in-app and, if you’re based in England or Wales, at a branch.
Lloyds Bank Small Business Loan
-
Representative APR11.60%on loans up to £25,000 and for businesses with a turnover of up to £25 million. APR for loans above £25,000 provided on application.
-
Representative Example11.60% APR representative based on a loan of £8,000 repayable over 60 months at an interest rate of 11.00% (fixed). Monthly repayment of £173.94. Total amount payable £10,436.40.
-
Available amounts£1,000 – £50,000
-
Available Terms1 – 25 years
Learn more about how we bring you our review.
Key features
- Secured and unsecured loansA variety of borrowing solutions available to suit different circumstances, including secured and unsecured business loans.
- No early repayment feeYou can repay your Lloyds business loan in full and ahead of schedule without incurring a fee.
- Small businesses can borrow up to £50,000With a Lloyds small business loan, you can borrow between £1,000 and £50,000.
- Loan term of one to 25 yearsWhen taking out a Lloyds small business loan, you can choose to repay it over one to 25 years.
Lloyds business loans pros & cons
Pros
- You can borrow for up to 25 years with a secured or unsecured small business loan.
- Small businesses can borrow between £1,000 and £50,000.
- The lender offers web-based support via a virtual chatbot or through the Lloyds Business app, alongside help @LloydsBank on Twitter.
- You won’t incur any early repayment charges if you want to pay off your loan in full before your term ends.
- Lloyds has branches in England and Wales.
Cons
- There is no dedicated phone support for business loans customers.
- There are no Lloyds Bank branches in Scotland or Northern Ireland.
- You can only access a Lloyds small business loan if you have a turnover of less than £3 million.
- You’ll need to provide a personal guarantee if you’re applying as a limited company or limited liability partnership.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business loans features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
Lloyds business loans full review
Lloyds Bank has been providing banking services to consumers and businesses since 1765.
Currently, Lloyds offers a small business loan worth £1,000 to £50,000, with a term length of anywhere between one and 25 years. This loan is for businesses with a turnover of less than £3 million.
You can access this loan on both an unsecured and secured basis. If you choose a secured business loan, you will need to provide an asset as a security against the loan, which may be repossessed if you fail to keep up with your repayments.
If you are applying on behalf of a limited company or limited liability partnership, meanwhile, you will need to provide a personal guarantee. A personal guarantee means you pledge to repay the loan if your business cannot.
You can also choose whether you want a fixed or variable interest rate. A fixed rate will not change for the length of your term, while a variable rate will rise and fall in line with the Bank of England bank rate.
There are no arrangement fees when you take out the loan, nor will you be penalised if you want to repay your loan in full before your term ends.
You do not need to open a Lloyds business bank account in order to access a small business loan. If you don’t want to open a Lloyds business account, you will be given a fee-free Loan Servicing Account until you have repaid your loan in full.
If you are successful in your application, you could have your funds within 48 hours of being approved.
Existing Lloyds banking customers may be able to apply for a loan worth more than £50,000. However, you will need to speak to the lender directly.
Alongside business loans, Lloyds also offers asset finance, invoice finance and overdrafts on its business bank accounts.
Lloyds business loans: at a glance
| Amount borrowable | Up to £50,000 (for small business loans) Unlimited (for larger business loans) |
| Term length | Up to 25 years |
| Web-based customer service | Chat bot |
| UK customer service number | 0345 072 555 |
| App | Yes (iOS and Android) |
| Face-to-face customer service | Yes |
| Access to loan without pre-existing account | Yes |
| Trustpilot rating | 1.6 out of 5 (as of 13 February 2023) |
Where Lloyds business loans stands out
Flexibility of loan type and interest rate: A Lloyds small business loan allows you to choose between unsecured and secured borrowing, as well as between fixed and variable interest rates.
Maximum term length: With a Lloyds business loan, you may be able to repay your loan over as long as 25 years.
No early repayment fees: You won’t be charged a fee if you want to repay your small business loan before your term ends.
No arrangement fee: You won’t be charged a fee for taking out a loan with Lloyds Bank.
No need to create a new business bank account: You are not required to have, or open, a Lloyds business bank account to access one of the lender’s small business loans.
Customer service options: You can access Lloyds customer support via a virtual chatbot, on Twitter, over the phone and at a branch (in England and Wales).
Where Lloyds business loans fall short
Eligibility requirements: Lloyds small business loans are for companies with a turnover of less than £3 million.
Personal guarantees: If you are applying on behalf of a limited company or limited liability partnership, you will be asked to provide a personal guarantee.
Customer reviews: While it has positive reviews for its business app, Lloyds Bank, as a whole, has a ‘Bad’ rating on Trustpilot.
Branch access outside England and Wales: There are no Lloyds branches in Northern Ireland or Scotland.
Lloyds business loans customer reviews
Lloyds Bank has a ‘Bad’ Trustpilot rating of 1.6 out of 5, based on over 3,700 reviews. It is important to note that this is for the Lloyds brand as a whole and not specifically its business loans products.
As for the Lloyds Bank mobile app, which is also not specific to business loans, it has the following reviews:
- App Store: 4.1 out of 5, based on over 3,000 reviews.
- Google Play: 4.0 out of 5, based on over 6,000 reviews.
This information is correct as of 13 July 2023.
Lloyds business loans eligibility
In order to be eligible for a Lloyds Bank small business loan, you must:
- be 18 or over
- have a turnover less than £3 million
- plan to use the loan for business purposes
- be a sole trader, partner or director with the authority to approve borrowing
- be willing to provide a personal guarantee if applying on behalf of a limited company or limited liability partnership
The lender will also carry out a credit check on you and your business to ensure that it is satisfied with your suitability for the loan.
» MORE: Guide to business credit scores
How to apply for a Lloyds business loan
When applying for a Lloyds business loan, you will likely need to complete the following steps:
- Decide ahead of time how much you want to borrow, for how long, and whether you want an unsecured or secured loan, and a fixed or variable interest rate.
- Apply online (if you are an existing customer) or over the phone (if you are a new or existing customer). You will need to provide evidence that your business can make your repayments on time, as well as the details of any other business finance you currently have.
- Lloyds will carry out a credit check and suitability assessment.
- If successful, you may be able to receive your funds within 48 hours of being approved.
» MORE: How to get a business loan
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
You can view our full review methodology here.
