HSBC Business Loans

HSBC Business Loans: Your Best Funding Option?

Are HSBC business loans the right fit for your company, or should you look at alternatives?

By Elma Glasgow

Deciding what type of business funding works best for your SME is a tricky process. You need to think about whether you want to give away shares to investors, or whether you’d prefer to retain complete control of your business.

If you decide on a small business loan, it’s important to figure out how much you want to borrow, how long you need to repay it, and which lender would best suit you. With loads of options available from traditional lenders, including HSBC business loans, not to mention from alternative finance providers, it's crucial that you do your research before committing to a lender.

Business loans from HSBC

The HSBC small business loan is available from £1,000 to £25,000, repayable over a term of between 12 months and 10 years. Instalments are fixed throughout the loan term, so you know when and how much you need to pay back, and SMEs don't need to have an HSBC business bank account to apply.

HSBC offers its customers a three-month repayment holiday at the beginning of the term, but interest is still charged during this period, increasing the size of future repayments. There’s also an arrangement fee of £100 and an early repayment charge equivalent to interest of one calendar month and 28 days.

In addition, HSBC offers a fixed or variable flexible business loan for SMEs. If you’re a limited company, you can borrow £10,000 or more, but sole traders and partnerships can only borrow above £25,000. Customers can repay monthly or quarterly over a term of between 12 months and 20 years.

Finally, accountancy and legal firms can apply for an HSBC partnership capital loan. It’s a specialist loan requiring repayments each month, quarter, six months or year. Funds from £25,001 are available for borrowers, who can repay over a term of up to 30 years and up to a year after retirement.

Alternatives to HSBC business loans

While HSBC business banking offers a range of financial products for SMEs, the bank's lending criteria might make them unattainable for many small businesses. For example, you may need to submit a detailed business plan, have a glowing credit score and be prepared to wait a few weeks for a lending decision.

Alternative business lenders like Fleximize typically offer an approval process that’s designed to support smaller enterprises. They know it’s essential that SMEs get the money quickly so they can focus on building their businesses. And to make things less costly for small businesses, Fleximize doesn't charge any arrangement fees, nor does it penalize companies for early repayment. In fact, you'll only pay interest for the time that you have a loan, so you could actually save money by repaying early.

Get started: Apply now

If you've struggled to get funding from the bank, you might have more luck with Fleximize or other non-traditional lenders. Combining expert underwriting with cutting-edge technology, many of these alternative finance companies can give you an initial decision in minutes and have the money in your account within a couple of days.

Better still, alternative lenders can be a lot more flexible than banks, both on terms and criteria. For example, Fleximize's business loans are available on a secured or unsecured basis, with flexible features built in as standard. Here are the key details:

Funding for all purposes

Instead of focusing too closely on past financial performance, Fleximize takes account of each company's current circumstances and future plans, with a view to saying 'yes' wherever possible. It can provide funding to companies in almost all sectors, and for practically any purpose. Here are just a few of the reasons that companies have applied for a loan with Fleximize:

  • Cash Flow
  • New contracts
  • Recruitment
  • Stock purchase
  • Business expansion
  • VAT payments
  • Corporation tax
  • Machinery
  • Training
  • PR & marketing
  • Renovation & refurbishment
  • Management buyouts / buy-ins

  • If you require funding for any of the above purposes, or simply want to discuss your options, a member of the Fleximize team will be happy to chat on 0207 1000 110. Ready to apply? Simply click the button below.

    Get started: Apply now