Lloyds Review

Lloyds also supports companies turning over more than this, but on a more bespoke basis. To help you decide if this lender is right for you, we’ve created a full overview of Lloyds’ business loan. On this page, you will also find guidance for businesses that have been turned down by the bank. 

Lloyds is a multinational bank with a long history of financial support for personal and business banking customers. It offers business loans with fixed and variable rates to UK businesses of all sizes, though Lloyds’ main named loan product focuses on businesses that wish to borrow up to £50,000 and have a turnover of less than £3m per annum. 

However, as with many mainstream banks, Lloyds can reject your application for many different reasons and lending can be far more restrictive when compared to alternative providers. For some businesses – especially those turned down by Lloyds in the past, it’s worth looking to alternatives. Rangewell can help you do just that, working with you to determine your needs, find the right lender to suit your goals and then negotiate finance on your behalf. 

Continue reading to learn more about Lloyds business loans, including eligibility criteria, how to apply, interest rates and loan terms and anything else you need to know. Alternatively, contact us now to talk about your business and specific needs to see how Rangewell can help you at no cost to your business. 

What is Lloyds? 

Lloyds is one of the ‘big four’ banks in Britain and is both a personal and commercial powerhouse, holding more than 800 billion in assets as of 2022. As a business lender, Lloyds focuses on offering small business loans to SMEs – though it also supports larger businesses on a more bespoke basis. 

What types of loans does Lloyds offer?

Lloyds’ main business loan offer is for businesses with an operating income of less than £3m per annum and are looking to lend between £1000 and £50,000. Other forms of lending are available, but these will be agreed upon individually with applicants when you start talking to the team at Lloyds – based on a number of factors like business size, income, loan amount and more. 

In addition, the bank also offers standard business banking finance options like overdrafts, commercial mortgages and the government-backed loan recovery scheme (RLS). 

Business loans

Lloyds offers business loans focused on small-scale lending between £1,000 and £50,000. This is only available for businesses with a turnover of less than £3m. If your business wants to borrow more than £50,000, you’ll need to be an existing business customer and contact Lloyds over the telephone to discuss the loan with a member of its team. 

Commercial mortgages

If you’re looking to purchase property for your business, commercial mortgages act in much the same way as domestic mortgages but are built for businesses. Lloyds’ commercial mortgages are available with a minimum of £25,001 in lending with fixed or variable interest rates. To apply, you’ll need to be a sole trader or Director of a limited company buying a property for business use. 

RLS loans

The recovery loan scheme came into effect in August 2022 and offers growing businesses the opportunity to borrow up to £45m. It is a government-backed scheme, and Lloyds is an accredited provider, but you’ll still be fully liable for your debt. Click here to learn more.

Are you eligible for a loan from Lloyds?

Lloyds has a set of expectations like all lenders, though these are more tailored to the specifics of the small business loan offer. If you want to borrow more than the £50,000 limit or your business turns over more than £3m per annum, you will likely face a different set of eligibility criteria that you’ll need to determine when you contact Lloyds to discuss loan options. 

For the standard small business loan, Lloyds requests that you: 

• Are aged 18 years or older
• Need the finance for business use
• Be a sole trader, partner or director and authorised to borrow on behalf of your business
• Have a turnover of less than £3m and need no more than the £50,000 maximum 

What information do you need to provide? 

When progressing through your application, Lloyds will request that you submit the following information to help their team make a decision on your loan. 

• An up-to-date business plan
• Cashflow forecasts
• Management accounts and any historical accounts
• Details of assets and liabilities 
• Any personal investments or assets you could use for security

Lloyds will also ask for information on your general business profile and your vision for using the funds. You will also need to demonstrate that the cash will be used for business purposes rather than personal to be successful. 

Does Lloyds offer secured or unsecured lending?

The main business loan offer from Lloyds is offered on both a secured and unsecured basis. You’ll be able to decide which option you’d prefer during your negotiations – though any assets offered as security may be lost if you fail to keep up with repayments. 

With unsecured lending, approval rates tend to be lower, and interest rates tend to be more expensive. If your business doesn’t meet Lloyds' expectations for its unsecured option, you may have to offer security to work with the lender.

If you’d rather have an unsecured loan, but Lloyds won’t offer one, speak to Rangewell today. We work across the entire lender’s market and can help find a provider willing to loan to your business on an unsecured basis to help you achieve your goals without offering assets as security. 

What are the rates and terms? 

Business bank loans from Lloyds are offered with both fixed and variable options, which impact the interest rate. Repayment terms can be spread out between 1-25 years. 

For loans of up to £25,000, variable interest base rates start at 11.5% APR. For a fixed-rate loan, base rates begin at 11.8% APR.

If you need more than £25,000, you’ll need to contact Lloyds to discuss your borrowing options and the team will offer an interest rate built around your business. Make sure you review any offer letters or documentation to check the interest rate is something you’re comfortable with. 
 

Want better rates or different terms? 

If you’re looking to borrow more than £50,000 you’ll either need to contact Lloyds to discuss your needs on a direct basis and agree on a bespoke loan package, or contact our team here at Rangewell. We offer independent advice about lenders and your options, able to arrange loans on your behalf to raise far greater sums to suit ambitious business goals. Get in touch if you’d like to learn more. 

What are the fees and charges?

Lloyds Bank is forgiving when it comes to business loan fees and charges, as it doesn’t charge an arrangement fee or incur any charges for early repayments. This is an appealing point of difference to many other lenders, which often waive early repayment fees but usually charge some an arrangement or set-up fee on the commencement of a loan. 

How to apply for a Lloyds business loan

To apply for your Lloyds business loan you’ll either need to log in to business banking online and apply through the website, or call the bank’s team to arrange the loan over the phone.

In both cases, you’ll need to provide the information we mentioned earlier on this page to demonstrate your business’ goals and ability to repay the loan. Lloyds will carry out an assessment and aim to issue a decision quickly. 

Once approved, funds can be accessed within 48 hours. 

What if you’ve been rejected by Lloyds?

If you’ve been rejected by Lloyds, you can still get finance from a different lender. Don’t give up on your business goals because of one decision – talk to our team today, and we’ll discuss the lender’s market as a whole, your business and which type of loan will suit your needs. From there, we can work with you to arrange a loan that suits your needs – all without any cost to you. 

Want to refinance your Lloyds loan? 

If your Lloyds bank loan is coming to an end, or you want to raise more money but still have a loan with the bank, you can either approach Lloyds directly and ask their team to help, or refinance to a new loan.

Refinancing essentially sees your debt purchased by a different lender whilst they provide a new loan agreement to you, which grants you the flexibility to raise more finance, spread out your repayment terms or change your interest rate. 

If you’re interested in refinancing, speak to our team to get the best deal. We aren’t biased towards any particular lender and instead help our clients find the best finance for their needs – which is particularly important when you’re refinancing an existing loan. 

Need more funding than Lloyds can offer? 

With the maximum limit of £50,000 for their named loan product, raising further finance with Lloyds is done on a case-by-case basis where rates and terms are poorly defined. This means borrowers are entirely beholden to what Lloyds can offer during your application. 

If you’d like to borrow more than the £50,000 limit, it may be worth, instead, exploring lenders that are willing to offer far greater limits but still offer clear interest rates and terms. Here at Rangewell, we can help you identify suitable lenders and arrange a loan that works for your business and goals.