Lloyds Bank remains a popular choice among business owners looking for funding. Whether you're seeking out a small business loan or large commercial finance, here's a quick look at the main features of Lloyds Bank business loans.
Key features of business loans with Lloyds
When it comes to business loans, Lloyds offers a range of products up to £500,000. Here's a closer look at some of the key features of their loans:
Base Rate Loan
At the lower end is the Base Rate Loan, which lets businesses repay a loan of at least £1,000 over a term of up to 25 years. The loan’s interest rate is linked to the Bank of England base rate so be prepared for your repayments to change if the base rate changes. There are no early repayment costs, but you'll face an arrangement fee on loans of up to £25,000. You can opt for either unsecured or secured.
Fixed Rate Loan
Lloyds also has a fixed rate loan of between £1,000 to £50,000. It’s repaid over a term of up to 10 years, with fixed monthly repayments, and can come as a secured or unsecured loan. There are no early repayment fees for these loans, but there is an arrangement fee on loans of up to £25,000.
Commercial Fixed Rate Loan
You can borrow between £50,001 and £500,000 with a term ranging from 1 to 25 years. The repayments are fixed each month so you can plan ahead with your finances, but if you want to repay early you could be charged a fee. There's also an arrangement fee. You can choose to borrow on either an unsecured or secured basis.
In addition to the above, you may also find Lloyds' Business Overdraft useful. Similarly, the bank also offers a business credit card and other commercial finance solutions, such as invoice financing. Or, if you want to take a look at some of the other finance solutions available to your growing business, it may be worth considering alternative finance.
There are several reasons why a growing number of small businesses are turning to alternative finance providers when searching for funding. Many UK SMEs need funding fast to make the most of timely opportunities, such as discounted stock purchase, but big banks can take too long to process applications. Plus, banks rely heavily on credit scores when assessing a business' finance application, which isn't always helpful for small businesses or startups who may have a thin file or a blemish on their credit history.
Alternative finance lenders, such as Fleximize, offer more flexible lending terms and a faster application process. This means funding can be delivered to businesses quicker, enabling them to continue building their businesses instead of waiting around for a lending decision.
For example, Fleximize's business loans are available on a secured or unsecured basis, with a range of flexible features. Here are the key details:
- Unsecured business loans of £5,000 - £250,000, on terms of 1-24 months
- Secured business loans of £5,000 - £500,000, on a maximum term of 48 months
- Funds deposited in as little as 48 hours, meaning no disruption to your business
- Take repayment holidays and top up your loan after three successful repayments
- No hidden fees or early repayment charges; only pay interest for the time you had the loan
- Flexible lending criteria – businesses don't need to have a perfect credit history
If you're considering applying for a small business loan, click the button below to get started, or call Fleximize's friendly team on 020 7100 0110 to discuss your options.