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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
Updated April 7th, 2020
What's in this guide?
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.
What business finance products does HSBC offer?
- Fixed and variable rate loans
A fixed rate loan means you’re protected from increases in interest rates, and can budget with certainty, while a variable rate exposes you to potential increases in interest rates, but could also mean you benefit from any reductions in rates. See HSBC’s current deals or compare fixed rate deals from multiple lenders. - Business credit cards
Need a small, ongoing, flexible line of credit? An HSBC business credit cards could do the trick. Check out our review or compare all business credit cards. - Arranged business overdraft
Already have an HSBC Business Current Account? You could borrow without security (subject to approval) using a business overdraft with interest rates linked to the Bank of England base rate. Learn more about business banking. - Invoice financing
HSBC’s invoice discounting service could help your firm maintain a healthy cash flow. Learn more about how invoice financing works or compare invoice financing deals for your business. - Asset financing
HSBC Equipment Finance is designed to let your company access better equipment/vehicles/software today – rather than having to save and wait. Learn more abut asset financing or compare deals from a range of lenders. - Commercial mortgages
Scaling-up or relocating? HSBC offers commercial mortgages too. Learn more about commercial mortgages or discover options suited to your business.
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.
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.
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.
Business loans for bad credit
Get live, personalised quotes on unsecured or secured loans from specialist lenders with our partner Think Business Loans.
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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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