Find out what Lloyds business loans offer, including interest rates, eligibility criteria, and repayment terms. Explore alternative lenders like iwoca for faster, more flexible business funding.
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As one of the UK’s ‘Big Four’ banks, Lloyds is a major player in the financial life of the UK. But if you’re looking for a business loan for your company, how does a Lloyds business loan compare to other lenders and alternative forms of finance?
In this article, we’ll take a look at what Lloyds business loans are available and how the bank’s terms, interest rates and customer service match up with other options available for UK small businesses.
Lloyds has a long history of providing business finance to UK-based businesses. As a major presence on the high street, Lloyds was once a natural option for entrepreneurs looking to finance their first steps, or fund strategic growth in the business.
But now, in 2025, with banking moving away from the high street and into the digital space, what business finance options are available through Lloyds as a lender?
Lloyds offers a mix of small business loans, asset finance, commercial mortgages and government-backed loans, with a range of flexible amounts, rates and loan terms.
Here’s a brief summary of the loans and finance that are available:
Lenders will always want to assess your potential risk as a borrower before agreeing to any loan – and Lloyds is no exception.
To be eligible for a Lloyds business loan, you typically need a trading history of at least one to two years, although no fixed minimum is stated. The bank assesses your creditworthiness, including cash flow and business credit score, and may check the financial health of directors. Applicants must be at least 18 years old and authorised to borrow on behalf of the business. Loans start from £1,000 and must be used strictly for business purposes.
Here are some more details on the criteria you’ll need to pass to be accepted for a loan:
Your first step when applying for a Lloyds business loan will be to fill out an online application form. You’ll be asked to share information about your business and your directors and to supply all the requested legal and financial documentation.
These steps are needed to prove your business credentials, and to demonstrate your risk profile as a lender and your ability to repay the loan.
Let’s walk through the process in a little more detail:
To kickstart the application process, you’ll need to collect all the relevant information and documentation about your business.
This will include business information about your operations, sector and business plan, as well as financial documents like bank statements and profit and loss (P&L) statements. Personal information on your directors may also be needed to check your creditworthiness as both a business and a board.
With all the business information to hand, you can now begin the application process. This will generally be done through an online application on the Lloyds website..
You may prefer to book an appointment with your business banking representative at your local Lloyds branch, but this is less common as more processes move online.
When filling out the online form, you’ll be asked to provide accurate and complete information, including the loan amount you’re requesting and the purpose of the loan.
Next, you’ll be asked to submit the required supporting documentation, such as financial statements, business plans and director information.
Lloyds will conduct a credit check on both your business and your personal credit history. This check takes into account your payment performance, cashflow history, debt levels and the overall health of the sector you trade in.
Lloyds will assess your application based on various factors, including your creditworthiness, business viability and the purpose of the loan. During the application process, you’ll need to make a strong argument for why the funding is needed and how the funds will be used.
If approved, Lloyds will provide you with a loan offer that outlines the terms and conditions in full.
If you accept the loan offer, you’ll need to sign a loan agreement that outlines the terms and conditions of the loan. This means agreeing to the amount being borrowed, the interest rate applied to the loan and the conditions of repaying the loan.
It’s worth noting that the more complex your business, the longer it’s likely to take for approval of the loan. Conversely, if you have a small, straightforward business set-up, you may get a relatively quick answer.
Keeping an eye on interest rates, repayment terms and loan fees helps you weigh up which lender to choose from the many finance providers in the market.
Here’s what to expect when taking on a Lloyds business loan:
It’s important that your chosen lender has a good mix of customer service and helpline channels to help with queries and offer support over the length of the loan.
How does Lloyds fair when it comes to customer support?
The bank has a mix of different contact channels to choose from, including online FAQs, phone helplines, a virtual assistant and even an X social media account. However, if you want in-person support, the lack of Lloyds branches on the high street could be a deal-breaker.
Here’s a breakdown of the main Lloyd’s help channels:
The Lloyds website has a comprehensive online help page where you can find answers to frequently asked questions (FAQs) and details of which department to contact with your query. You can also log in to the Online For Business portal to carry out online banking tasks and make changes to your account.
Lloyds has two separate business phone lines.
You can contact the Online For Business help teams on 0345 300 0116. This service is also available using Relay UK if you have a hearing or speech impairment. Sign Video services are also available if you use British Sign Language. This helpline is open Monday to Friday, 7am to 8pm and Saturday, 9am to 2pm.
You can also phone the Commercial Banking Online team on 0808 202 1390 for queries relating to technical and security issues. Lines are open 8am to 6pm, Monday to Friday.
The Lloyds app features a virtual assistant that’s programmed to answer your banking and finance questions. This is good for general FAQs but probably won’t cut the mustard for specific loan queries.
Lloyds doesn’t offer a calculator specifically for business loans or commercial mortgages. But it does feature an asset finance calculator to help you work our repayment and deposit amounts and get a quote from the lender.
Lloyds has no general email address for customer service support. It does, however, have an X (formerly Twitter) account where you can ask queries.
Lloyds recently announced that it will be closing another 136 branches, so finding a branch nearby could well become problematic. If you can book a meeting with your business banking representative, face-to-face is a good way to discuss your loan, repayments and your plans for further strategic finance.
Today there is a wide range of alternative lenders and business finance platforms that can serve your capital needs beyond the capabilities of the high street.
At iwoca, our aim is to get you the money you need fast, so you can jump on the next opportunity, or fund the next step in your growth.
Let’s look at how iwoca business loans compare to Lloyds:
A lender that can flex with you over the course of your start-up journey is a definite bonus. So, how do Lloyds measure up as a business lender when your business has minimal trading history?
Lloyds does offer small business loans, but is likely to be focused on minimising risk when lending. The bank will prefer companies with longer trading histories, good business credit scores and a proven history of excellent financial performance. This may not be ideal if you’re a new start-up with minimal trading and cashflow history.
iwoca is a more flexible option for your start-up. We know the importance of securing funding at the early stages, so we offer funding even if you have a limited trading history. We look at your loan application from all sides, gauging your financial heal;th through your cloud accounting and bank statements etc..
And we don’t keep you waiting. You’ll know whether your loan application has been successful within 24 hours, so you can start drawing down the cash and financing the initial steps that will kickstart your new business.
Before you enter into a business loan agreement with a large bank, like Lloyds, it’s sensible to think about the key implications and risks of becoming a borrower.
The future is unpredictable. So it’s always possible that a drop in cashflow will result in you defaulting on your loan repayments. What happens in this situation?
If you default on the loan, your business credit rating will be severely damaged. This makes it difficult to access future loans from any lender. Lloyds may also pursue legal action to recover the debt and could even seize your business assets if the loan is secured against them. Information about the default will also be reported to credit reference agencies, impacting your personal credit score if you’re a sole trader.
Personal guaranties and security against your business or personal assets may be needed in some circumstances. If you take out a secured loan against your business premises, or your own home, these could be at risk if you default on the loan.
You may have existing debt in the business where it would be sensible to consolidate these debts into one manageable agreement with Lloyds.
Lloyds does offer debt consolidation loans where you bring all your debt together to borrow between £1,000 and £50,000 and pick a term over 1-7 years. This is convenient and gives you one predictable repayment to make each month. However, it’s unlikely to be the most cost-efficient way to borrow, with higher interest rates that reflect the increased risk for Lloyds, as a lender.
If you’re an established business, with a proven trading history and a positive business credit score, Lloyds is worth considering as your business lender.
Lloyds can offer substantial lending, with both secured and unsecured loans and access to the government-backed Growth Guarantee Scheme.
If you’re a fast-growing enterprise looking for flexibility and control, iwoca can support you with finance that matches your needs.
With iwoca you can:
