Lloyds business loans: what they cost and who they suit

Lloyds Bank lends UK limited companies £1,000–£50,000 online at 11.2% APR representative, with no arrangement fee and terms of 1–10 years. Larger or secured lending runs to 25 years. Here is what Lloyds charges, what it asks a director to sign, and when a non-bank lender fits better.

Lloyds is open about what its headline rate means. Its small business loan page says the representative APR is 'an illustration of the highest rate that we expect to offer up to 51% of successful applicants'. So roughly half of approved companies are quoted something above 11.2%, and what your company is offered depends on its own figures. Checked on 13 October 2026.

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The loans Lloyds offers a limited company

Lloyds' main offer is an online small business loan of £1,000–£50,000 at a fixed rate. Above £50,001 it moves to relationship-managed lending with terms of 1–25 years. Asset finance, commercial mortgages, and the government-backed Growth Guarantee Scheme sit alongside it.

Sources: Lloyds Bank small business loans, business loans, large business loans, asset finance and government schemes.

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What a Lloyds business loan costs

Lloyds charges 11.2% APR representative (fixed) on business loans of £1,000–£50,000, and no arrangement fee. Above £25,000 you can choose a variable rate instead, which Lloyds says usually tracks the Bank of England base rate, so your repayments can go up or down.

Lloyds publishes this representative example:

'11.2% APR (fixed) representative based on an assumed unsecured loan amount of £8,000 with 60 monthly repayments of £172.55 at an annual interest rate of 10.65% (fixed). Total amount payable £10,353.00.'

Two limits sit around that rate. It applies to unsecured loans for companies with turnover up to £25m, and for anything above £50,000 Lloyds tells you the rate when you apply. Your own quote depends on your company's figures, so treat 11.2% as the ceiling of the cheaper half rather than the going rate.

Source: Lloyds Bank small business loans.

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Repaying a Lloyds business loan early

Lloyds' answer depends on which page you read, so it is worth asking before you sign. Its small business loan page advertises 'no arrangement fees or early repayment fees'. Its general business loans page says something more qualified:

'Yes, you can repay your variable rate loan early and you won't have to pay an early repayment fee. If you have a fixed rate loan, you may have to pay an extra fee if you pay off the balance before the end of the term.'

Since the online small business loan is fixed-rate by default, the two statements can both apply to the same product. Ask Lloyds to confirm in writing which applies to the offer in front of you, and look for it in the loan agreement before you accept.

Sources: Lloyds Bank small business loans and business loans.

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Who Lloyds lends to, and what it checks

To apply you need to be 18 or over, want to borrow at least £1,000, need the money for business rather than personal reasons, and be a director authorised to borrow for the company. Lloyds takes online applications up to £50,000 from companies with turnover below £3m.

Lloyds publishes no minimum trading period, and says a lack of credit history 'isn't necessarily a problem' because it is only one of the things it considers. What it does want is evidence the company can make the repayments on time, details of any other borrowing, and permission to run a credit check on you and the business.

Depending on the loan, Lloyds may also ask for:

• Historic financial accounts.
• Management accounts.
• A business plan covering the borrowing term.
• A cash flow forecast covering the borrowing term.
• Details of assets you could use as security, including the estimated value of your business.

A strong business credit score helps, though Lloyds assesses each application on its own figures rather than a published threshold. If you want to see where your company stands before you apply, iwoca Credit Compass shows your Equifax business credit score and what is affecting it, for free.

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Lloyds asks limited companies for a guarantee

Lloyds lists 'a Guarantee if you're a Limited Company or Limited Liability Partnership' among the things it needs, so expect a director to be asked for one. That is true even though the small business loan is unsecured business lending, meaning Lloyds takes no charge over company assets to make the loan itself.

A personal guarantee makes the director who signs it personally responsible for the debt if the company cannot repay, so it is worth reading carefully and taking advice on before you sign. Above £50,000, Lloyds moves to secured lending and may take security over company assets or property.

Lloyds is direct about the risk in its own wording:

'You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.'

It also warns that any property given as security, which may include your home, may be repossessed if you do not keep up repayments on debts secured on it. All its lending is subject to a satisfactory credit assessment, and it says security may be required.

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How to apply for a Lloyds business loan

You apply through the Lloyds app or Online for Business. Lloyds says it gives an instant decision on loans up to £50,000, and that approved funds should reach your account within 48 hours.

1. Get an indicative quote. For loans up to £25,000 this shows a likely rate and repayments without affecting your credit rating.
2. Apply through the app or Online for Business, saying how much you want, over how long, and what for.
3. Send the documents Lloyds asks for, and give permission for the credit assessment.
4. Read the offer, and the guarantee if Lloyds asks for one, before you accept.

Lloyds says 99% of customers who used its quote tool and chose the same product got an offer rate that was the same, better, or no more than 10% above the indicative quote. That makes the quote a reasonable planning number, though not a promise.

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If Lloyds turns your application down

Lloyds says it can discuss other finance options with you, or refer a declined application to its appeals process, which it pursues with the British Bankers' Association. Ask for the appeal if you think the decision missed something about your trading.

A decline on its own should not damage your rating. Lloyds says that unless your credit history shows multiple applications, your credit rating 'shouldn't significantly deteriorate'. Applying to several lenders at once is what tends to count against you.

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Lloyds has no business loan calculator

Lloyds does not publish a business loan repayment calculator. It offers an indicative quote tool for loans up to £25,000, a Bank of England base rate calculator for existing variable-rate borrowers, and a separate calculator for asset finance.

So if you want to model monthly repayments on a given amount and term before you talk to anyone, you need a business loan calculator elsewhere. Work out the monthly repayment first, then check it against your own forecast, because affordability is central to what Lloyds assesses.

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How Lloyds supports business loan customers

Lloyds' business banking line is 0345 072 5555, open Monday to Friday 08:00 to 18:00 and Saturday 09:00 to 14:00, except bank holidays. For a business loan over £50,000, Lloyds asks existing customers to call that number, or 0800 022 4378 if they have a relationship manager.

How you reach Lloyds depends on what you need:

• Phone, on the numbers above, or 0808 202 1390 for Commercial Banking Online technical and security queries.
• The Lloyds app and Online for Business, for managing the loan and messaging the bank.
• A branch appointment, where one is still within reach.

Branch access is the weak point. Lloyds Banking Group announced the closure of 136 branches across Lloyds, Halifax, and Bank of Scotland, as reported by the Guardian in January 2025. If face-to-face banking matters to how you run the company, check what is near you before you commit to a five-year loan.

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When a Lloyds business loan is the better choice

A Lloyds business loan is usually the cheaper option for a planned purchase you will repay over several years, because its representative APR is well below what non-bank lenders charge. A non-bank lender tends to fit better when the need is short, uncertain in size, or urgent.

A Lloyds business loan may be the better fit if:

• You are funding something specific and costed, such as a vehicle, a fit-out, or equipment.
• You want the lowest likely rate.
• You want longer to repay, up to 10 years online or 25 years on secured lending.
• You can wait for a full credit assessment, and your accounts show the repayments are comfortable.

A non-bank lender may be the better fit if:

• Your need is a timing gap rather than a purchase, so a five-year term would mean paying interest long after the gap has closed.
• You are not sure how much you will need, and would rather draw it in stages.
• You need more than £50,000 without moving to secured, relationship-managed lending.
• You expect to repay early, and want to be certain that costs nothing.

On that last point, brokers are already routing larger deals away from the high street. In iwoca's SME Expert Index (May 2025), 67% of the finance brokers surveyed said they recommend alternative lenders to small business clients for loan applications over £100,000, against 6% who recommend high street banks.

To weigh the options side by side, you can compare business loans from banks and non-bank lenders.

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The cash flow gap a bank term loan cannot cover

A fixed term loan works best when you know the amount and the date it will be repaid. It fits badly when the real problem is timing: an invoice due in 60 days, payroll falling before a customer settles, or stock to buy before a peak season.

Borrowing over five years to cover a three-week gap means paying for five years of interest.

That gap is what an iwoca Flexi-Loan is built around. It is a business loan with flexible repayment options: you draw what you need up to your limit, you are charged interest only on what you have drawn, and because we only charge interest for the days you borrow, clearing it early reduces what you pay rather than triggering a fee.

Victoria Simpson runs VCare Group, a care company whose local authority customers take 30–60 days to pay while 200 staff need paying every month:

'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.'

Her gap is three days wide, and no term loan is three days long.

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Lloyds business loan FAQs

Do you need a Lloyds business current account to get a business loan?

Lloyds says you can apply for a business loan without holding a Business Current Account with it. If you are approved and would rather not open one, Lloyds gives you a fee-free Loan Servicing Account with no day-to-day fees or charges until the loan is repaid, and you can also switch your business account elsewhere and keep the loan.

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Is a small business loan secured or unsecured?

Lloyds' small business loan of £1,000–£50,000 is unsecured, which means Lloyds takes no charge over your company's assets to make the loan. It still asks a limited company for a guarantee, and lending above £50,000 is usually secured against assets or property.

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Can you get a business loan without a personal guarantee?

Some lenders will lend to a limited company without a director's guarantee, usually against security or on stronger figures, but both Lloyds and iwoca ask for one on the products covered here. Ask any lender early, because a guarantee makes the director who signs it personally responsible if the company cannot repay.

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How do you contact Lloyds about a business loan?

Call Lloyds business banking on 0345 072 5555, Monday to Friday 08:00 to 18:00 and Saturday 09:00 to 14:00. For a loan over £50,000, Lloyds asks existing customers to call the same number, or 0800 022 4378 if they have a relationship manager.

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Does Lloyds offer commercial mortgages?

Lloyds offers commercial mortgages and other lending over £50,001, with repayment terms of 1–25 years, arranged through its relationship team rather than online. iwoca does not offer property finance.

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Can a start-up get a Lloyds business loan?

Lloyds publishes no minimum trading period and says a lack of credit history is not necessarily a problem. It still needs evidence the company can make the repayments, which is harder to show on a few months of trading, so expect to supply forecasts and a business plan.

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Is there a Lloyds business credit card as well?

The Lloyds Bank Business Credit Card is a separate product for Lloyds Business Current Account holders, and it can suit recurring spending better than a lump-sum loan.