Halifax business loans: does Halifax lend to limited companies?

Halifax doesn't offer business loans or business bank accounts, as it's predominantly a bank for individuals. However, Halifax belongs to the same banking group as Lloyds Bank and Bank of Scotland, from which you can get business banking products.

We explore what each route involves for a UK limited company, and when a non-bank lender like iwoca might suit you better.

Straight from Halifax: "At Halifax, we don’t provide business banking services, but Lloyds Bank and Bank of Scotland (who are both part of the same group as us) do." We checked Halifax's business banking page on 12 October 2026.

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Why doesn't Halifax offer business loans?

Halifax doesn't offer business loans or any other business banking, as it primarily focuses on personal banking. In fact, its website points business customers to Lloyds Bank and Bank of Scotland instead (last checked on 12 October 2026).

Halifax is a division of Bank of Scotland plc, and both are part of Lloyds Banking Group. So if you bank personally with Halifax and run a limited company, you can get a bank loan from Lloyds Bank or Bank of Scotland, or a lender outside the group.

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Can I open a Halifax business account?

No. Halifax doesn't offer business accounts either. You can open one with Lloyds Bank or Bank of Scotland, which both ask for an active Companies House record and ID for the people connected to the account.

Here's what both banks ask for, from their own pages (checked on 12 October 2026):

• You're an owner or director of the business, at least 18 and a UK resident with a UK mobile number.
• The company trades from a UK address and has an 'active' status on the Companies House register.
• It's been registered with Companies House for at least four days, with no changes to the register in the past four days.
• Bank of Scotland also asks for a UK driving licence or passport and a three-year address history for everyone connected to the account.

Both banks charge no account fee for the first 12 months if it's your company's first business account with them, then £10 a month. Halifax's own page still quotes the older fee, so go by the Lloyds and Bank of Scotland pages.

For the step-by-step, see our guide to how to open a business bank account for a limited company. If you're not set on either bank, you can also compare business bank accounts from other providers.

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Where can a Halifax customer get a business loan?

Within the same group, Lloyds Bank and Bank of Scotland both lend to businesses. Their loans start from £1,000, go up to £50,000 online for companies with turnover under £3 million, and carry an 11.2% APR representative*.

Here's an overview, and a comparison with iwoca's Flexi-Loan solution:

*Sources: Lloyds Bank business loans, Bank of Scotland business loans, iwoca Flexi-Loan terms. All checked on 12 October 2026.

Lloyds Bank's rate is fixed on loans of £1,000 to £50,000, and Bank of Scotland also offers a variable rate on loans of £25,001 or more. With a fixed rate, either bank may charge a fee if you repay early. For the full picture of what Lloyds offers, read our Lloyds business loan review.

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Can I use a Halifax personal loan for my business?

No. Halifax's own terms rule out personal loans for "business related purposes", so you can't use one to fund your company. Borrowing personally would also make the debt yours, not the company's.

Halifax lists business use alongside gambling and property purchases as things its personal loans can't be used for. If your limited company needs the money, it's the company that should borrow it.

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Bank or non-bank lender: which suits your company?

A bank loan usually costs less and can include longer repayment terms (particularly for secured bank loans) while non-bank lenders are ideal if you need a decision quickly, want to draw only what you need, or have already been turned down by a bank.

Choosing a Lloyds Bank or Bank of Scotland loan may be better if:

• Your company has a clear lending need of £1,000 to £50,000 and can wait for the bank's process.
• You want a lower representative APR.
• You need longer to repay: up to 10 years online at Lloyds, or 1 to 25 years for larger loans.

An alternative lender may suit better if:

• You need an answer fast – iwoca gives a decision within 24 hours.
• You want to draw down only part of the money and pay interest only on what you use.
• You'd rather not switch your business bank account to borrow.

Brokers say banks are pulling back, too. In iwoca's SME Expert Index for Q2 2026, 75% of brokers agreed that high street banks are reducing their appetite for funding small businesses.

To compare more loan options, see other lenders we've reviewed.

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Key factors to consider before applying for a business loan

Lenders will generally be looking for businesses that can be classed as ‘low-risk borrowers’. In other words, to get your loan application approved, the lender will want to see evidence that you can make the repayments and honour the loan.

Factors to think about when making your loan application include:

• Your business credit score and financial health. Lenders will be looking for a good payment history, a solid credit profile and no signs of financial problems.
• How much funding is needed and repayment affordability. Asking for too much funding can be a red flag, as can poor cashflow forecasts for the business.
• Whether personal guarantees, collateral, or trading history are required. Some lenders will need security on the loan, either as a personal guarantee or a collateral asset within the business, to reduce risk.
• Checking loan flexibility. Early repayment options, top-ups and repayment holidays should all be researched before you sign on the dotted line.

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How to improve your chances of getting approved for a business loan

To maximise your chances of loan approval, present your business as low‑risk by maintaining a strong credit profile, forecasting accurate cash flow, and supplying lenders with clear, up‑to‑date financial documentation, then pick a lender whose eligibility criteria match your needs.

Focus on:

• Building a strong business credit profile and managing your cash-flow position effectively.
• Making sure you have detailed financial documents available. These will include your bank statements, statutory accounts and revenue and cash-flow forecasts for the year ahead.
• Exploring digital-first lenders, like iwoca, so you can speed up the faster approval process and have the benefits of flexible repayment structures.
• Understanding the eligibility criteria upfront, so you apply for the right product and take on a loan that’s suited to your needs and financial capabilities.

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How an iwoca Flexi-Loan works if you bank with Halifax

An iwoca Flexi-Loan lets a UK limited company borrow £1,000 to £1m, repaid over one to five years, with interest only on what you draw. Every new Flexi-Loan needs a personal guarantee from at least one director.

Here's how it works, from our own product terms (as of 12 October 2026):

• Apply online. Connect your business bank account or upload statements. Applying runs a soft check only – if you take the loan, we run a hard check, which shows on your credit file.
• Get a decision. You'll get a decision within 24 hours, but it might be longer depending on the complexity of the request.
• Draw what you need. You can draw down up to your limit and you're only charged interest on what you've drawn.
• Repay monthly, or early. There are no fees for repaying early, so clearing the loan sooner means paying less interest.

What it costs. Our rates start at 1.5% per 30 days. There are no fees on 12-month loans. Longer terms may include a fee – typically 5% for 13 to 24 months, and 6% for longer.

The personal guarantee. At least one director signs a personal guarantee. That means they're personally responsible for the loan if the company can't repay it, so make sure you're comfortable with that before you apply.

A Flexi-Loan isn't the right fit for everything. Because we charge interest only for the days you borrow, it's built for shorter needs. Over a long term, a bank loan's lower APR will usually cost you less. We also don't offer property finance or commercial mortgages.

Here's how one director uses it to cover payroll while waiting for customers to pay:

"It might be just a two or three day gap. But when you've got payroll running at that level, two or three days matters." — Victoria Simpson, founder, VCare Group

Since 2012, iwoca has funded more than 100,000 UK businesses with £5bn+. In 2025 alone, we issued 58,000 loans worth over £1.3bn.

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Halifax business loans: common questions

Is the Halifax app moving to Lloyds?

Yes. Halifax says "The Halifax brand is changing to Lloyds" and that it has "started to close the Halifax app and online banking", inviting customers to move to the Lloyds app in stages. Its brand change page has the details.

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Does Halifax do commercial mortgages?

No. Halifax doesn't do business lending of any kind. Lloyds Bank offers commercial mortgages and loans over £50,000, with terms of 1 to 25 years. iwoca doesn't offer property finance.

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Do I need a Lloyds business account to get a Lloyds loan?

No. Lloyds Bank says you can apply for a business loan without a Lloyds business current account. If you're approved and don't want one, it opens a Loan Servicing Account with no day-to-day fees until the loan is repaid.