Small Business Loan
Small Business Loans available from between £1,000 and £25,000. 7.4% APR Representative
Fixed monthly repayments may help to minimise the impact of a large purchase on your day to day cash flow.
HSBC current account not required
Lending is subject to credit status
No charges for additional repayments to your loan, and an option to defer your first repayment for 3 months 1
Repayment terms of between 12 months and 10 years
Apply for a Small Business Loan
Before applying, please read the following carefully, including the ‘Your Information’ section in the Business Banking Terms and Conditions.
Check your eligibility
Find out instantly if you’re likely to receive the money you need
Guide to business borrowing
Find out which lending option might be right for you and what you should know before you apply
This page is about:
Protect your cash flow from the impact of large purchases with fixed monthly repayments
Offset the interest against your tax liabilities, as with all business finance
With our 10billion lending fund for small businesses, you could take advantage of the next opportunity.
Know where you stand as your interest rate and repayments are fixed for the life of the loan
Apply however it suits you – either online, by phone or in branch
Faster Small Business Loan applications for your business with HSBC LinkScreen
Track your repayments and the outstanding balance using Business Internet Banking
Take a payment holiday for the first 3 months of the loan 1
How to get a business loan
This section looks at some of the business loan requirements you will need to fulfil, as well as the factors that we assess when you make an application. Alternatively, you can find out instantly if you are likely to get the money your business is seeking using our Eligibility Checker. If you make an application we will seek to find out about:
You and your business – To gain a full understanding of your business, plus how your skills and experience will help achieve your plans
Personal/business investment – To establish your investment in the business compared to what our investment might be.
Purpose – To know how your planned borrowing fits in with your plans and discuss your finance options.
Amount – To determine if the amount you’re applying for is appropriate and help structure your borrowing in the most suitable way
Term – To discuss the time period over which the borrowing is required, helping us assess your finance options and your ability to repay
Repayment – To understand how you intend to repay the borrowing and be confident of your ability to do so (eg from trading profit, cashflow or asset disposal)
- For a new business this may be set out in a business plan and cash flow forecasts
- For established businesses this is usually the assessment of the historic trading figures, current turnover, as well as plans and projections
Some of the following may be required to help us assess affordability and your ability to make repayments. The more finance you’re applying for, the more information and documents we may need to see. If you’d like to know more, please ask your Business Manager for more details.
Security/assets – To seek some form of appropriate security, such as guarantees, property or other assets that are straightforward to value and realise
Other business interests – To know what other commitments you or your management team has, so we can assess how much attention and focus the business will have
Cash flow forecast and business plans – To demonstrate your ability to think logically about your business strategy and business model
Management accounts and historic accounts – To see evidence of past financial performance (not applicable to start-ups)
Business Loan Rates and Charges
The minimum loan size is 1,000 and the maximum is 25,000.
The minimum loan term is 12 months and the maximum is 10 years.
The interest rate is fixed for the term of the loan and agreed at the outset. Interest is charged throughout the full loan and any month when a repayment is not made.
A competitive arrangement fee of 100 is payable at the start of the loan.
A 3-month repayment holiday is available at the start of the loan. If this option is taken, interest is charged throughout the 3-month period, meaning the amount of interest you pay will be higher.
Under the Consumer Credit (Early Settlement) Regulations, if the loan is repaid early the bank is entitled to deduct interest of 1 calendar month and 28 days. This is automatically included in the calculation of the rebate of interest to give the loan settlement figure.
7.4% APR representative (fixed). Based on an assumed loan amount of £13,000 over 60 months at the AIR of 7.1% p.a (fixed). Monthly repayment £256.67. Total amount payable £15,500.72.
Total amount payable
*Annual Percentage Rate Representative (APR Representative)
7.4% APR representative (fixed)
* Annual Interest Rate (AIR)
* Simple Interest rate
* Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term and includes the rate of interest and a £100 arrangement fee. The APR will vary depending on the loan amount and term.
* Annual Percentage Rate Representative (APR Representative) is the advertised rate (or a lower rate) we reasonably expect at least 51% of people who are accepted for and enter into the loan agreement as a result of the advertising or marketing will pay.
* Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a monthly basis.
* Simple Interest Rate is the rate at which daily interest accrues on the loan (not compounded)