HSBC business loans review 2020

HSBC offers a wide range of business financing opportunities for companies of all sizes. We've rounded-up the various deals currently available.

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HSBC business loans comparison

Data indicated here is updated regularly
Name Product Loan type Loan amounts Loan terms Turnover/trading criteria
HSBC Fixed Rate Small Business Loan
Fixed rate loan
£1,000 to £25,000
1 year to 10 years
No specified minimum turnover or time trading
Representative example: Borrow £13,000 over 5 years at a rate of 7.1% p.a. (fixed). Representative APR 7.1% and total payable £15,404.01 in monthly repayments of £256.73.
HSBC Flexible Business Loan
Fixed or variable rate loan
From £25,000
1-20 years
No specified minimum turnover or time trading
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HSBC is one of the world’s largest banking and financial services organisations and it serves millions of customers worldwide. The bank was founded in 1836 to facilitate trade between Europe and Asia.

HSBC has a high rate of approval for business lending (93% for loans up to £30,000, as of 2017) and says it is committed to helping British businesses take the first necessary steps to scale the ladder of success. If you need a loan, you can apply via the HSBC site.

HSBC small business loans

HSBC offers fixed rate loans for small businesses looking to borrow up to £25,000, with loan terms between 1 and 10 years. HSBC small business loans have a representative APR of 7.1% for loans between £1,000 and £25,000.

As an accredited lender under the Bounce Back Loan Scheme, HSBC also offers small business loans from £2,000 to £50,000 to businesses affected by the coronavirus pandemic. BBLS loans are provided with a fixed rate of 2.5% p.a.

HSBC business overdraft

If you already have an HSBC Business Current Account, you can borrow money without needing to use security (subject to approval) by using a business overdraft. The interest rate you receive will be linked to the Bank of England base rate. Learn more about business banking.

HSBC asset finance

HSBC asset and equipment finance is designed to let your company access better equipment, vehicles and software today, rather than having to save and wait. You can learn more abut asset financing or compare deals from a range of lenders.

What other business finance products does HSBC offer?

HSBC business loan rates

HSBC small business loans have a 7.1% representative APR on loans between £1,000 and £25,000, but the interest rate you receive will vary based on your business’ application and financial situation, as well as the size and length of your loan.

HSBC business overdrafts have a variable representative EAR of 10.36%, with overdraft facility offered with at least a 4% margin over the Bank of England base rate.

Am I eligible for a HSBC business loan?

You should only apply for a HSBC business loan if you’re certain you can meet the repayment terms.

Here are the criteria that you will personally need to meet in order to be eligible for an HSBC Small Business Loan:

  • UK resident for at least three years
  • Over 18 years old
  • Good credit rating without a history of county court judgments or bankruptcy

Information HSBC will need to process your loan application

HSBC will need to know the following:

  • A full rundown of how your business operates
  • How your particular skills and experience will help you achieve your goals
  • Information on how the money you want to borrow fits into your larger goals
  • The period over which you want to borrow your money

Proof the bank will need to see to approve your application

  • Security/assets. It will often need to see security in the form of guarantees, property or other types of assets that are easy to value.
  • Other business interests. It will need to see how many other commitments you and your business will have in order to ensure that you can dedicate the appropriate amount of time in order to grow it properly and make your loan repayments.
  • Cash flow forecast. You need to be able to prove that you have a logical and well thought out business strategy and model.
  • Financial accounts. The bank will need to see evidence of your past financial history.

HSBC states that its business loans should not be used for anything other than the purpose of investing in your business. Absolutely no personal purchases are allowed.

What can’t HSBC do?

Looking for something else? Outside of the HSBC services listed above, you could also consider the following finance products for your business.

Restaurant worker taking card payment from a customer over counter

Merchant cash advance

Get a lump sum upfront to repay in-line with volume of future sales. Compare deals and learn how business cash advances work.

Find out more

Team of staff having strategy meeting in a studio office

Business line of credit

Borrow only as much as you need, when you need it, then repay on terms that suit you. Compare a range of lenders.

Compare now

Textile studio in a small business

Business loans for bad credit

Get live, personalised quotes on unsecured or secured loans from specialist lenders with our partner Funding Xchange.
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Get tailored loan quotes

Save time by checking eligibility with multiple lenders and get quotes for BBLS/CBILS and other loans.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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