Lender review · Business loans, overdrafts, commercial mortgages, asset finance
Lloyds Bank
- Reviewed May 2026
- Editor Oliver Mackman
- Companies House 00002065
- Methodology Public
Major UK high-street bank under Lloyds Banking Group. Full SME lending book for existing Lloyds business banking customers, with unsecured term loans up to around £500k and larger via secured facilities and commercial mortgages. Personal guarantee from a director typical. Mainstream criteria: 2+ years trading, clean credit, established Ltd company.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 8 May 2026
At a glance
- Product
- Business loans, overdrafts, commercial mortgages, asset finance
- Ticket size
- £1k to £500k+ unsecured; larger via secured facilities
- Typical rate
- From around 7.4% to 12% APR for unsecured term loans
- Decision time
- 5 to 15 business days
- Soft search at quote
- No
- Limited companies only
- No
- FCA regulated
- Yes (check the FCA Register)
- Companies House
- 00002065
- Founded
- 1765
Scores against our methodology
- Rate transparency3/5
- Eligibility clarity3/5
- Decision speed2/5
- Decline handling3/5
How Lloyds Bank works
Lloyds Bank operates as a business loans, overdrafts, commercial mortgages, asset finance provider in the UK SMB market. Major UK high-street bank under Lloyds Banking Group. Full SME lending book for existing Lloyds business banking customers, with unsecured term loans up to around £500k and larger via secured facilities and commercial mortgages. Personal guarantee from a director typical. Mainstream criteria: 2+ years trading, clean credit, established Ltd company.
The product mechanic is straightforward in shape but the underwriting is sector-specific. Tickets sit in the £1k to £500k+ unsecured; larger via secured facilities band, decisions land within 5 to 15 business days, and the published rate range is From around 7.4% to 12% APR for unsecured term loans. A hard search may apply at quote stage; ask before you submit if credit-file footprint matters to you. Lloyds Bank is FCA regulated.
Where Lloyds Bank fits best: existing lloyds business banking customers, established ltd companies 2+ years trading, borrowers wanting a relationship-led mainstream bank. Where it does not fit: sub-2-year trading, post-decline applicants with ccjs, speed-prioritised cases.
Pricing examples
Worked examples using Lloyds Bank's published rate range (From around 7.4% to 12% APR for unsecured term loans). Simple-interest approximation, mid-band rate. Real offers will differ and should be confirmed on the lender quote.
| Ticket | Term | Estimated total cost | Approx monthly |
|---|---|---|---|
| £25,000 | 24 months | £29,850 | £1,244 |
| £50,000 | 36 months | £64,550 | £1,793 |
| £100,000 | 48 months | £138,800 | £2,892 |
Indicative only. Confirm on a Lloyds Bank quote.
Eligibility
- Trading time: typically 12 to 24 months minimum for the cleanest pricing. Weakness flagged: Sub-2-year trading.
- Turnover floor: not always published. As a working figure, expect a £100k+ turnover requirement for term loans of £50k+. Smaller tickets and MCA structures have lower floors.
- Sector exclusions: Speed-prioritised cases.
- Credit profile: Post-decline applicants with CCJs.
- Company structure: Limited companies and (in some cases) sole traders / partnerships.
- Best fit: Existing Lloyds business banking customers; Established Ltd companies 2+ years trading; Borrowers wanting a relationship-led mainstream bank.
Pros
- + Largest UK SME banking customer base; relationship managers across regions.
- + Full product range from £1k overdrafts to multi-million commercial mortgages.
- + Competitive APR for top-tier applicants with existing banking flow.
- + Established underwriting, FCA / PRA regulation, FSCS protection on deposits.
Cons
- − Hard credit search at application; no soft-search quote stage.
- − Decisions take 5 to 15 business days for clean cases; longer above £100k.
- − Decline rates high for sub-2-year trading and post-CCJ applicants.
- − Sector exclusions standard (gambling, adult, CBD, vape).
Best for
- · Existing Lloyds business banking customers
- · Established Ltd companies 2+ years trading
- · Borrowers wanting a relationship-led mainstream bank
Weak at
- · Sub-2-year trading
- · Post-decline applicants with CCJs
- · Speed-prioritised cases
When to use Lloyds Bank
Use Lloyds Bank when
Your application matches the best-fit profile: existing lloyds business banking customers, established ltd companies 2+ years trading, borrowers wanting a relationship-led mainstream bank. The published ticket range (£1k to £500k+ unsecured; larger via secured facilities) covers your ask, the decision speed (5 to 15 business days) fits your cash-gap timeline, and the rate range (From around 7.4% to 12% APR for unsecured term loans) is acceptable to you given your credit profile.
Do not use Lloyds Bank when
Your profile sits in the weak-at list: sub-2-year trading, post-decline applicants with ccjs, speed-prioritised cases. Lloyds Bank will likely decline, and the decline itself can sit on broker records for 90 days. If you have any of these flags, route directly to a specialist (post-decline lender, MCA against card flow, asset-backed alternative) rather than using Lloyds Bank as a screen.
FAQs
What is the minimum trading time for Lloyds Bank?
Lloyds Bank is weaker on sub-2-year trading. As a working figure, expect Lloyds Bank to ask for at least 12 months of trading for most product lines, and 24 months for the cleanest pricing.
Does Lloyds Bank require a personal guarantee?
Most UK SMB lenders require a personal guarantee from at least one director. Lloyds Bank is no exception in the standard case. The few exceptions: asset-backed lending where the asset itself stands as security, and a small number of MCA structures where card flow is the underwriting basis. For business loans, overdrafts, commercial mortgages, asset finance specifically, expect a PG to be requested.
How fast does Lloyds Bank fund?
Lloyds Bank quotes 5 to 15 business days for an underwriting decision. Funding to bank account typically follows within one to three working days of acceptance, subject to KYC, signed documents, and (where applicable) registration of any debenture or charge.
What rate should I expect from Lloyds Bank?
Lloyds Bank's published range is From around 7.4% to 12% APR for unsecured term loans. The headline number is rarely the offered number. Rate transparency on this lender scores 3/5 in our methodology. Expect the cleaner end of the band only if you have 2+ years of trading, clean credit, and turnover comfortably above the lender's stated floor.
What happens if Lloyds Bank declines me?
If Lloyds Bank declines, you have three realistic next steps. First, ask for the decline reason in writing, most reputable UK lenders will tell you. Second, route the application to a specialist post-decline lender (Bizcap, JPM Capital, Bolton Finance) where credit issues are the constraint, or to an asset-backed alternative where security is available. Third, use a broker panel to fan the application across the lenders most likely to accept your specific decline reason. Lloyds Bank scores 3/5 on decline handling in our methodology.
Where to apply
Apply directly via www.lloydsbank.com/business/loans/business-loans.html, or use our free quote form to be matched across the UK broker panel most likely to approve your specific profile, not just Lloyds Bank.
Specialty alternatives
See all lender reviews for alternatives.
Reviewed by Oliver Mackman, Director. Last reviewed: 8 May 2026. Lender website: www.lloydsbank.com/business/loans/business-loans.html.