Henry Williams
Kristina FoxMany or all of the products and brands we review are from our partners who compensate us. This may influence which products we write about and the product we choose in our ‘promotion’. However it doesn’t influence our reviews. Our opinions are our own.
Lloyds business loans: at a glance
Lloyds Bank offers small and large business loans to sole traders, limited companies and partnerships. It also offers overdrafts, business credit and charge cards, invoice finance, asset finance and financial support for businesses that import and/or export.
Both existing and new customers can apply for a business loan with Lloyds, provided they meet the bank’s eligibility criteria.
Lloyds business loans can offer flexibility, with up to 25-year repayment terms currently available, as well as the ability to choose between fixed and variable interest rates.
Promotion
Lloyds Bank Larger Business Loans
-
Representative APRAvailable on application
-
Representative ExampleAvailable on application
-
Available amounts£25,001 – no maximum
-
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
- Flexible repaymentsFlexible repayment lengths may be available
- Fixed and variable interest ratesPick between fixed and variable interest rates for your loan
Lloyds business loans pros & cons
Pros
- Can borrow for up to 25 years with a secured or unsecured small business loan
- Web-based support via a virtual chat bot or through the Lloyds Business app
- Can borrow up to £50,000 (small business loans) or an unlimited amount (larger business loans)
- Lloyds has branches in England and Wales
Cons
- No dedicated phone support for business loans customers
- No Lloyds Bank branches in Scotland or Northern Ireland
These pros and cons are based on an exclusive survey of UK business owners on what they found important when selecting a range of business products, conducted by NerdWallet in December 2022.
Lloyds business loans full review
Lloyds Bank has been providing banking services to consumers and businesses since 1765.
Lloyds offer small and large business loans, as well as alternative finance solutions – such as overdrafts and asset finance, for example – that could be used to manage cash flow, buy new equipment and grow your business.
You could have access to funds in as little as 48 hours once you’ve been accepted and signed a loan agreement.
Like many lenders, Lloyds business loans and finance solutions can be personalised to your business’s circumstances. You can choose a loan term and either a fixed or variable rate, depending on your needs and the type of loan you want.
We’ve put together everything you need to know about Lloyds business loans at a glance in our table below.
| 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) |
Lloyds business loan features
Below, you can find some of the key features of a Lloyds Bank business loan.
Loan amounts and terms
Among the business owners who responded to NerdWallet’s survey, the most important criteria for a business loan is the flexibility of the term length.
With a Lloyds business loan, you can choose a term length from between one and 25 years. The term lengths you can select are not affected by how much you want to borrow.
The amount you can borrow as a business loan is less of an issue for UK business owners. According to our survey, this was the fifth most important factor when looking at business loans, beaten by term length and various types of customer service.
That said, the amount available depends on whether you want to take out a small business loan or a larger business loan.
Unsecured business loans
Lloyds Bank may allow your business to borrow from £1,000 to £50,000 as an unsecured small business loan. An unsecured loan can be taken without using an asset as security. Terms vary between one year and 25 years.
Generally, businesses that have banked with Lloyds for at least six months can apply for a loan without needing to provide ‘tangible security’, such as property. If you’re a new customer, you may be asked to take out a secured loan instead.
With an unsecured business loan from Lloyds, you can choose between a fixed or variable interest rate. A fixed interest rate means your monthly repayments are set when you take out the loan, and will not change over the loan term. However, with a variable interest rate, your repayments could go up or down over time.
It will usually take one week from application for a Lloyds unsecured loan for the funds to be deposited in your account.
Secured business loans
Lloyds Bank’s larger business loans can only be taken out as secured loans.
With a larger business loan from Lloyds, there is no advertised upper limit, with the amount borrowable starting at £25,001, subject to credit and affordability checks. Terms vary up to 25 years.
You may also be able to take out a small business loan (up to £50,000) as a secured loan. Customers that are new to Lloyds may be asked to put up security for a business loan under £25,001 as the bank would not yet have a banking profile for your business.
With Lloyds’ secured business loans, you have a choice between a fixed or variable interest rate, depending on what best suits your business’s circumstances. Variable interest rates could increase or decrease during the loan term, while fixed interest rates will remain the same throughout.
With secured loans, you need to put up an asset as collateral. If you were unable to keep up with your loan repayments, your asset could be repossessed and sold by the lender to pay what you owe.
Lloyds secured business loans can take four to five weeks to set up from the date of application.
Customer service
When looking for a business loan, the ability to access the lender’s customer service across a range of platforms is essential, according to our survey of business owners.
Web-based customer service was ranked as the second most important factor when considering a business loan, followed by customer service over the phone and via an app (third and fourth respectively).
Lloyds Bank has a business-specific FAQ page on its website, as well as an automated chat bot for queries. It’s also possible to access support via its business banking app.
However, there does not seem to be a way to contact customer service agents on the lender’s website.
You can contact customer service over the phone by calling the general business banking helpline on 0345 072 5555. You will be transferred to the business loans team for more specific support or to apply for a business loan.
Lloyds Bank has branches across England and Wales, where you may be able to get support related to your business loan. While there are no Lloyds Bank branches in Scotland, the Bank of Scotland is part of the Lloyds Banking Group and also offers business loans. However, our NerdWallet survey of UK business owners found that face-to-face customer service wasn’t in demand from business lenders, ranked the sixth most important factor.
Security
Most business lending is unregulated. However, if you are a sole trader, a partnership with fewer than four partners or an unincorporated association, then business lending of up to £25,000 generally falls within Consumer Credit regulation.
This means a lender must be authorised, and meet the standards set by the Financial Conduct Authority (FCA). Under these rules, if you take out a loan of £25,000 or less from Lloyds, and are one of the business types mentioned above, then your borrowing should be regulated.
Customer reviews
Lloyds Bank scores 1.6 out of a possible 5, and is rated ‘Bad’ on Trustpilot, according to over 3,600 reviews. Bear in mind that these reviews may come from both personal and business customers, and won’t be specific to the loans products covered on this page.
The lender’s app, on the other hand, has much better reviews:
- On the App Store, the Lloyds app has been rated 4.1 out of 5 based on over 3,000 reviews.
- On Google Play, the Lloyds Business app has been rated 3.7 out of 5 based on over 6,200 reviews.
All of these scores are accurate as of 4 May 2023.
Lloyds business loans eligibility
In order to be eligible for any of Lloyds Bank’s business loans, you must:
- plan to use the loan for business purposes
- be looking to borrow at least £1,000 (for a small business loan) or £25,001 (for a larger business loan)
- be a sole trader, partner, or director with the authority to approve borrowing
- be 18 or older
What’s more, Lloyds will need to confirm your ability to repay your business loan on time and in full. This may include details of how you will fund your repayments, as well as any other borrowing arrangements your business currently has.
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 choose a Lloyds business loan
When making a decision about whether to take out a Lloyds Bank business loan, there are a variety of factors that you should consider:
- How much are you looking to borrow?
- How long do you want your loan repayment to take?
- Do you want an unsecured loan or a secured loan (where you put up an asset for security, but may lose it if you cannot make all your repayments)?
- Do you want a fixed or variable interest rate?
- Can you afford to make all the repayments on your business loan?
Bear in mind that no single loan is best for all businesses.
Lloyds offers a variety of loans, repayment terms, and interest rate options, so you may be able to find a solution that works for you and your business plans.
It’s also worth looking at the other borrowing options that Lloyds Bank offers, such as overdrafts, credit cards and asset finance, to see if any of these better suit your business’s needs.
How to apply for a Lloyds business loan
If you are an existing Lloyds customer, you can currently apply for a small business loan by logging in to your online banking.
If you’re not a current Lloyds customer, and you’re looking for a small business loan (up to £25,000), you can call Lloyds on 0800 056 0056 if your turnover is less than £3 million, or 0800 022 4388 if your turnover is more than £3 million.
You can also get an unofficial quote via its online tool for small business loans before you apply on the Lloyds website. This will not affect your credit score and may give you an indication of the likelihood that you’ll be accepted.
If you want a larger business loan (above £25,000) and you don’t yet bank with Lloyds, you can enquire by calling 0345 072 5555 if your turnover is below £3 million and 0800 022 4378 if your turnover is over £3 million.
Existing Lloyds business customers without a relationship manager can call 0345 072 5555. Alternatively, those with a relationship manager can apply for large business loans online.
Review methodology
At NerdWallet Ltd UK we base our reviews on the results of surveys we conduct to understand what key product features are important to those who use them, and align them to the product we review.
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 it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.
You can view our review methodology here.
About the Authors
