Kristina Fox
Henry WilliamsMany 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.
TSB business loans: at a glance
TSB offers a range of lending options to suit different business needs, including fixed and variable rate business loans.
You don’t have to be an existing TSB business banking customer to take out a loan, though you will have to open an account with TSB in order to manage it.
Business customers may also be able to access other products through TSB, such as business bank accounts, business overdrafts and access to funding from other lenders.
Promotion
TSB Base Rate Business Loan
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Representative APRAvailable on application
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Representative ExampleAvailable on application
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Available amounts£25,001 – no maximum
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Available Terms1 – 25 years
Learn more about how we bring you our review.
TSB business loans pros & cons
Pros
- Flexible loan terms of up to 10 years (its fixed rate loan) or up to 25 years (base rate loan)
- Access to customer service agents over the phone
- You can borrow up to £1 million (Fixed Rate Loan), or a potentially unlimited amount (Base Rate Loan)
- Access to web-based support for some queries via an automated chat bot
- TSB has branches across England, Scotland and Wales for in-branch support
Cons
- Although TSB has a business app, you can’t review your loan on it.
- TSB has no branches in 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.
TSB business loans key features
- Secured and unsecured business loans available, depending on your business circumstances and the type of loan chosen
- A variety of term lengths available, which may depend on the type of loan chosen
- Choose between a fixed interest rate loan and a variable interest rate loan, known as a ‘base rate loan’
- Repayment holidays may be available to business loans customers
TSB business loans full review
| Amount borrowable | £1,000 to £1 million (fixed rate loan) From £25,001 (base rate Loan) |
| Term length | One to 25 years (base rate loan) One to 10 years (fixed rate loan) |
| Web-based customer service | Automated service 24/7 Web chat |
| UK customer service number | 0345 835 3858 |
| App | No – app for business banking customers does not provide access to loans |
| Face-to-face customer service | Yes |
| Access to loans without pre-existing account | Yes (but you will need to open a TSB account on application) |
| Trustpilot rating | 3.9 out of 5 (as of 16 February 2023) |
TSB business loan features
Below, you can find some of the key features to think about when taking out a business loan with TSB.
Loan amounts and terms
According to NerdWallet’s survey of business owners, flexibility of the loan term length is the most important factor when comparing business loans. Less important was the maximum loan amount, coming in fifth out of the 10 total business loan criteria.
Both the maximum loan term length and the maximum amount of loan are determined by whether you are considering a fixed or variable interest rate on your loan.
Fixed rate business loans
With a fixed rate loan from TSB, you can currently borrow from between £1,000 and £1,000,000 over a period of between one and 10 years.
Secured and unsecured fixed rate loans may be available. With a secured loan, you will have to put up an asset as ‘security’, which may be repossessed and sold by the lender if you cannot keep up with your repayments.
As this type of loan has a fixed interest rate, your repayments will be the same each month for the whole loan term. You’ll also be charged an arrangement fee, which can be up to 1.5% depending on the amount you borrow.
You can repay your loan early, but you may be charged a break fee if you make early repayments (in part or in full) on a fixed rate loan of over £25,000. Repayment holidays may also be available.
Base rate business loans
With a base rate loan from TSB, you may be able to borrow any amount from £25,001 upwards, over a term of between one and 25 years.
The interest rate on TSB’s base rate loan is variable and linked to the Bank of England base rate. This means that the rate you pay will change in line with changes to the base rate and could go up or down during the loan term.
In addition, you’ll be charged an arrangement fee for the loan which can be up to 1.5% of the borrowable amount, depending on how much you borrow.
You may be required to provide security for the loan, such as your home or other high-value asset, which could be repossessed and sold by the bank if you fail to keep up repayments on your business loan.
Customer service
Customer service is crucial for business loans customers, according to NerdWallet’s survey of business owners. Web-based customer service ranked second in the list of business loan criteria, closely followed by over the phone and app-based customer service.
It’s possible to contact TSB online through its automated web chat service, operating 24 hours a day, seven days a week. On weekdays, you may also be able to contact an online customer service agent, though the queries they can deal with are limited.
You can contact customer support over the phone by calling the business banking team on 0345 835 3858. The phone line is open 8am-6pm on weekdays, and 9am-2pm on Saturdays.
TSB also has branches across England, Scotland and Wales, where you may be able to get face-to-face support with your business loan. TSB has no branches in Northern Ireland. However, according to NerdWallet’s survey, customer service in person is less important for business owners, coming in sixth place.
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 TSB, and are one of the business types mentioned above, then your borrowing should be regulated.
TSB’s fixed rate loan may fall under Consumer Credit regulations, if you borrow under £25,001 and are a sole trader, partnership with 3 or fewer partners, or an unincorporated association.
With TSB’s base rate loan, you can only borrow £25,001 or more, so Consumer Credit regulation is unlikely to apply.
Customer reviews
TSB has a ‘Great’ Trustpilot rating of 3.9 out of 5, based on over 17,000 reviews. 51% of reviews rated the bank ‘5-star’, and 31% rated it ‘1-star’. Bear in mind that these ratings are based on the whole brand, not just the specific products covered on this page.
TSB’s business app, on the other hand, has much better reviews:
- On the Apple App Store, the TSB Business Mobile app has been rated 4.7 out of 5 based on over 16,300 reviews.
- On Google Play, its business app has been rated 4.7 out of 5 based on over 6,000 reviews.
These scores are accurate as of 16 February 2023.
TSB business loans eligibility
To be eligible for apply for a TSB business loan, you must:
- be at least 18 years old
- be a sole trader, partner in a partnership or the director of a company
- run a business based in the UK
- need the loan for business use only
If you have questions about the eligibility criteria and whether your business meets them, you can contact the lender directly.
How to choose a TSB business loan
When looking at TSB loans and deciding between a fixed rate and variable rate business loan, there are a number of questions to ask yourself:
- How much do you want to borrow?
- How long do you want to be making repayments for?
- Do you want a fixed interest rate, where repayments are fixed for the term, or a variable interest rate that could go up or down during your loan term?
- Do you have an asset that you could put up as security for a loan, or would you prefer to opt for an unsecured loan?
- Do you want the option of a repayment holiday?
- Are you prepared to potentially pay a break fee for repaying your loan early?
How to apply for a TSB business loan
To apply for a TSB business loan, you can call the lender on 0345 835 3858. This phone line is open 8am-6pm on weekdays, and 9am-2pm Saturday.
TSB will ask you how much you want to borrow, why you want to take out a loan, and how long a loan term you want.
In addition, TSB has a loan application checklist on its website to give you an idea of the information it will need to collect from you. This may include:
- Details about your borrowing needs: How much you want to borrow, your desired term length, the reason for the loan, how you intend to fund your repayments.
- Details about your business: Your business history, the experience of the directors, how much you have invested in the business, any other borrowing.
- Other information: Business plans, cash flow forecasts, details of income streams, profit and loss sheets, balance sheets.
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.
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