Barclays Review

Barclays is one of the UK’s most recognisable banking brands – with nearly 50 million customers on the global stage. As a business lender, Barclays supports small businesses with flexible unsecured loans, meaning you can raise capital without having to offer assets as security.

To do so, however, you’ll need to apply directy with Barclays. As with any other form of loan application, the bank will have its own set of eligibility criteria and decision making process – which may or may not work in your favour. The more you can understand what types of business Barclays works with, the better chance you have of succeeding with your application. 

To help you learn more about the lender and to offer alternatives if you’ve been turned down or the loans on offer aren’t suited to your goals, we’ve created this independent overview of Barclays. At Rangewell, we are finance experts and work across all lenders – so we’re not biased towards any particular provider and will instead help you make the best choice for your business. 

If you’re considering a loan from Barclays or you’ve been rejected in the past, get in touch with our team today to discuss your situation. We can help you strengthen your application, improve your chances of successful borrowing and help you secure the loan you need to make your business thrive.

What is Barclays? 

Almost everyone reading this knows Barclays is a bank – but not everyone knows about the business side of the brand. Barclays is a multinational bank serving personal and business banking customers across the globe. Originating in London in 1690, Barclays is regarded as one of the UK’s ‘big four’ banks and supports over one million business banking customers. 

As a lender, Barclays could be seen to be more accomodating with its unsecured lending offer than other mainstream banks – offering up to £100,000 on an unsecured basis.

What types of loans does Barclays offer?

Barclays offers a few different financing options for businesses. Which is right for you depends on your current circumstances and your need for finance. This overview is focused on loans, but it’s worth mentioning that for some businesses, a Barclays overdraft may provide a suitable solution for bridghging cashflow issues and other temporary credit problems.

Aside from its overdrafts, Barclays also provides a range of loan options – though the unsecured small business loan is the bank’s main area of focus and will be what the majority of small businesses will be guided towards. 

Barclays keeps loan options refreshingly simple to explain – offering a single named ‘business loan’ where terms are based on the amount you want to borrow, your business and your financial performance. 

Business loans 

Barclays business loans offer finance from £1000 to £100,000 on an unsecured basis. The interest rate you are given will depend on how much you borrow, starting at 12.4% APR representative for lending up to £25,000. Any loan for larger amounts will have an interest rate which is agreed upon during your application. 

For applicants who want more than the £100,000 limit, Barclays asks for security and will negotiate bespoke rates and terms with you.

Commercial mortgages

If you want to purchase property as a business, a commercial mortgage can help you achieve your goals. Barclays offers commercial mortgages for amounts over £25,000 - providing fixed rate lending for 1 to 10 years and variable rates for 1 to 25. 

If you’re interested in purchasing property as a business, it’s worth exploring commercial mortgages in-depth. Rather than defaulting to Barclays, explore your options and get a deeper understanding of how this lending agreement may or may not suit your goals. 

Are you eligible for a loan from Barclays?

Barclays is unclear about its eligibility criteria, asking instead that applicants submit a few key documents from which the bank makes a decision. However, there are standard expectations held by most banks which include some core requirements – we feel it’s safe to say that Barclays will also expect you meet these as a minimum:  

• You must be aged 18 or older
• Be a named Director of your business or a sole trader 
• Hold a business bank account – though this doesn’t have to be with Barclays 
• Have a good credit history with no CCJs (though some banks may be able to lend even with CCJs or bankruptcies. Contact Rangewell if you’re concerned and we may be able to help. 

During your application, Barclays will ask questions about you and your business which they will base any decision on. To help strengthen your application and make it as effective as it can be, contact our team first and we’ll help you understand whether you meet the criteria expected by high street banks or if there are more appropriate options for your situation. 

What information do you need to provide? 

During any application for both unsecured and secured loans, Barclays will ask you to provide the following: 

• A copy of your latest trading accounts
• Your current business plan – though we’d always advice updating this ahead of an application to ensure it’s as current as it can be
• Financial accounts detailing profits and loss 
• Information about how you’re going to use the loan

Does Barclays offer secured or unsecured lending?

Barclays offers both unsecured and secured lending, though which is offered will depend on your loan amount and your business’s circumstances. Unsecured lending tends to be offered with a higher interest rate than a loan with security – but it will depend entirely on your negotiations with Barclays. 

For reference, unsecured loans are only available for loans of up to £100,000 – whereas secured loans can be taken out for far greater amounts which must be individually agreed upon with Barclays.

What are the rates and terms? 

The rates and terms on offer from Barclays differ dpeending on whether you choose an unsecured or secured loan. 

The unsecured loan options start with a rate of 12.4% APR representative for amounts up to £25,000. If you want to borrow more than that, you’ll need to speak to Barclays directly to determine what interest rate you will be offered. Fortunately, the bank offers a service where it can estimate your APR before you apply – which means you can check without it affecting your credit score. 

Terms are more limited for unsecured loans too, with a minimum term of 1 month and maximum of 10 years. 

Secured loans tend to reduce interest rates and can be taken out for up to 25 years – though you’ll need to provide adequate security. If you’re interested in lending more than £100,000, it’s worth discussing your application with our team here at Rangewell first before contacting Barclays so we can advise you on the best route to raising the finance you need.

Want better rates or different terms? 

If the rates or terms offered by Barclays don’t suit your business goals, then don’t worry. There are lots of other lenders that may be more suitable for your business. Get in touch with our team now and we’ll talk you through your options.

What are the fees and charges?

Barclays isn’t forthcoming about its charges and fees – preferring instead to discuss the during an application and subsequent offer. Though it does charge an arrangement fee, the lender offers a valuable repayment holiday to help businesses during a slow period with no costs to take it out. 

How to apply for a Barclays loan

Applying for a Barclays loan is relatively simple depending on if you’re an existing business banking customer or not. If you are, you can see a provisional lending limit in the Barclays app and apply through that. 

If you’re not a customer, you’ll need to call the team and enquire over the phone. In either case, applications won’t take long and you should have a decision within 48 hours. Before you apply for a Barclays business loan, follow these steps. 

1. Make sure you understand which type of loan you need for your business. If you’re unsure about secured or unsecured options, how interest rates work or how much you need to borrow, speak to Rangewell first and we’ll help make it clear. 
2. If you’re interested in pursuing Barclays as your lender, use this free eligibility checker on their website. It’s not a credit check so won’t count against your file and helps determine what sort of offers you’ll be able to access.
3. If you’re an existing business banking customer, log on to your Barclays app and follow the steps to apply for a business loan. 
4. If you’re new to Barclays, call the team on 0800 515 462 between 8am and 6pm Monday-Friday in the UK. 

Alternatively, speak to Rangewell first and we can apply on your behalf if we agree that Barclays is the right lender for you. This will help guarantee you get the best possible loan agreement for your needs – all at no cost to you. 

What if you've been rejected by Barclays? 

If you’ve been turned down for a Barclays loan, don’t let it set you back. Your business may have been rejected for many different reasons and other lenders are available to help. Before you can progress with new loan applications, we’d advise taking the time to determine why you were unsuccessful and what you can do to strengthen your business in the eyes of lenders. 

We’ll happily help you do all of that and even identify new lenders and secure a loan on your behalf. Get in touch now if you’ve been rejected for a Barclays loan.

Want to refinance your Barclays loan?

Banks tend to offer long term lengths for loans, which often leads to businesses feeling locked into an agreement. Refinancing allows you to change lender or alter your existing loan with the same lender. For people asking questions like “can I increase my Barclays business loan amount?” then refinancing is likely the best way to get a competitive offer. Rather than simply approaching Barclays and trying to negotiate a new loan or change your existing one, speak to Rangewell and see how refinancing can help you.

Need more funding than Barclays can offer? 

Depending on your business’ financial circumstances, Barclays may be unable to offer loans that meet your credit needs. If you want to borrow more than the £100,000 unsecured loan, you can either approach Barclays for a secured option or look to the wider lender’s market. 

Here at Rangewell, we have a great relationship with every business lender – from banks to independent digital providers. We’re not biased towards any particular company and instead work hard to find the best deals for our clients. Get in touch now to get finance suited to your business.