TSB business loans

If you are looking for funding to get your business off the ground or to take it to the next level, challenger bank TSB could help with a loan of £1,000 to £100,000 for up to 25 years.

Updated

Fact checked
TSB

Compare business loans

Table: sorted by representative APR.
Name Product Loan amounts Loan terms Representative APR
Nucleus Cash Flow Finance
£25,000 to £150,000
3 months to 5 years
-
Esme Business Loan
£10,000 to £250,000 *From £25,500 for Sole Traders
1 year to 5 years
9.51%
Representative example: Borrow £50,000 over 24 months at a rate of 8.40% p.a. (fixed). Representative APR 8.73% and total payable £54,491.93 in monthly repayments of £2,270.5.
NatWest Fixed Rate Small Business Loan
£1,000 to £50,000
1 year to 10 years
-
Representative example: Borrow £10,000 over 5 years at a rate of 11.53% p.a. (fixed). Representative APR 12.49% and total payable £13,295.18 in monthly repayments of £221.59.
HSBC Fixed Rate Small Business Loan
£1,000 to £25,000
1 year to 10 years
7.1%
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.
Fleximize Unsecured Business Loan
£5,000 to £250,000
3 months to 3 years
-
Representative example for loans of £25,000 or below: Borrow £12,500 over 15 months with an interest rate of 36.4% p.a. (fixed). Representative APR 43.1% and total payable £15,740.33 in monthly repayments of £1,049.36.
Funding Circle Unsecured Business Loan
£10,000 to £250,000
6 months to 5 years
-
MarketFinance Small Business Loan
£5,000 to £250,000
6 months to 3 years
-
iwoca Flexi-Loan
£1,000 to £200,000 *start-ups up to £10,000
1 month to 12 months
49%
Representative example: Borrow £10,000 over 12 months at a rate of 40% p.a. (variable). Representative APR 49% and total payable £12,294.
Spotcap Short Term Loan
£50,000 to £350,000
1 month to 24 months
22.8%
Representative example: Borrow £100,000 over 12 months with an average monthly interest rate of 1.4% and a 2.0% arrangement fee. Representative APR 22.8% and total payable £109,332 in monthly repayments of £9,111.
Capital Box Loan
£2,000 to £50,000
18 months
-
Growth Street GrowthLine
£25,000 to £1,000,000
From 1 day and open-ended
-
loading

Compare up to 4 providers

What is TSB?

TSB is a direct lender, not a broker. Founded as the Trustee Savings Bank in 1810, TSB is one of the oldest and biggest names in British banking. Spun out of Lloyds Bank in 2013, it has 631 high street branches across the country. With 24-hour online account management and UK-based call centres, you can manage your money easily from anywhere at any time.

Whether you’re starting a business or you need a cash boost to help it grow, TSB could help with a fast and transparent business loan. It’s quick and straightforward to apply.

TSB loan options

TSB offers two types of business loans:

  • Base rate loan. This is an adaptable finance option which can be tailored to meet long or short-term financial needs. The loan is linked to TSB’s bank base rate, so the interest rate that you pay will change as the base rate changes.
  • Fixed rate loan. This option has a fixed interest rate for the entire term, so you’ll know exactly what the repayments will be each month. Fixed rate loans are less dependent on market conditions, giving you confidence that you will be able to meet your financial obligations.

Key features of a TSB base rate loan:

  • Borrow from £1,000. Your loan amount will depend on your requirements, the size of your business and your business’s performance and creditworthiness.
  • Repay over 1 to 25 years. Choose a repayment term to suit your business.
  • Arrangement fee. TSB will charge you a fee, which is a small percentage of your loan amount, as well as interest.
  • Repayment holidays. You have the option to pay only the interest on your loan if you have a month or two when revenue is low.
  • Security required. TSB may want to secure your loan against an asset such as your home or other property. You should be aware that your home or property will be at risk if you do not keep up with repayments.
  • Repay your loan early at any time. TSB will not charge you for settling your base rate loan early. You will just pay interest for each day you have the loan.

Key features of a TSB fixed rate loan:

  • Borrow from £1,000 to £100,000. Your loan amount will depend on your requirements, the size of your business and your business’s performance and creditworthiness.
  • Repay over 1 to 25 years. Choose a repayment term to suit your business.
  • Fixed repayments. Repayments will remain the same for the term of your loan, which could help you to budget for them more easily.
  • Arrangement fee. TSB will charge you a fee, which is a small percentage of your loan amount, as well as interest.
  • Repayment holidays. You have the option to pay only the interest on your loan if you have a month or two when revenue is low.
  • Secured or unsecured. You can choose to have your loan secured, which may offer a better interest rate, or unsecured. You should be aware that if you secure your loan against an asset such as your home or other property, it will be at risk if you do not keep up with repayments.
  • Charge for early repayment. If you repay part or all of your fixed rate loan before the end of the agreed term, you may be charged a fee.

The interest rate you are offered will depend on factors like the amount you apply for, the term of the loan, the performance of your business and your business’s credit rating. This may differ from the advertised “Representative APR”.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the annual percentage rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both the interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of the loan.

All lenders must calculate the APR of their products in the same way, and they must tell you the APR before you sign an agreement, so for consumers, it can be a handy tool for comparison.

Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.

Am I eligible for a TSB business loan?

You should only apply for a TSB business loan if you’re certain you can meet the repayment terms. You must also:

  • Be aged 18 or over
  • Be a sole trader, partner or director
  • Require the loan for business use

How can I apply?

To apply, you will need to call the TSB customer services helpline or visit a branch. You should have to hand:

  1. How much you would like to borrow and for how long.
  2. The purpose of the finance.
  3. Details about your business including profiles on all business owners and investors.
  4. Business plans and cash flow forecasts.

How can we help?

Textile studio in a small business

Compare loan rates

Get live, personalised quotes on unsecured or secured loans from a large panel of lenders through our partner Funding Xchange.
Get quotes
Team of staff having strategy meeting in a studio office

Invoice financing

Unlock the value in your invoices today to access the funding your business needs to move forward.

Learn more

Technician using specialist equipment

Asset financing

Borrow against equipment or property to accelerate your company’s growth.

Learn more

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.

Read more on this topic

Go to site