Santander business loans review

What is a Santander business loan (UK) and how does it work?

Santander offers several business loan options for UK-based SMEs, ranging from fixed-rate loans for small businesses to tailored commercial lending for larger, more complex funding needs.

Here’s a snapshot of the core loan options:

• Santander Small Business Loan: Borrow £2,000 to £25,000 over 1 to 5 years at a fixed rate (representative 7.9% APR). No interest for the first 12 months and no arrangement fees. You’ll need a Santander business current account to be eligible​.
• Business Loans (from £25,001+): Available with fixed or variable interest, over terms up to 25 years. These are structured loans with support from a dedicated relationship team​.
• Growth Capital Loan: Designed for established, high-growth businesses. Loans range from £500k to £5m, with repayment typically at term end or via refinancing. You retain full ownership, so there is no equity dilution​.

All loans are subject to eligibility checks, affordability assessments, and may require supporting documents.

Who qualifies for a Santander start up business loan or small business loan?

Santander’s small business loan is designed for UK-registered businesses with relatively simple structures—such as limited companies or sole traders—who hold a Santander business current account.

To qualify, you’ll typically need:

• Annual turnover of over £100,000 (not explicitly required, but this appears in eligibility filters used by comparison partners)
• A clear plan for loan use (e.g. equipment, marketing, working capital)
• A clean credit profile and up-to-date financial records
• A business history (even if brief) and confidence in future cash flow​

Start-ups may not be directly eligible unless they already bank with Santander. However, Santander encourages early-stage applicants to explore alternative funding (like asset finance or overdrafts), or consider the now-closed government-backed schemes previously offered​.

Comparing Santander business loan rates and interest options

Santander offers both fixed and variable rate business loans, depending on the loan type and amount:

• Fixed rate loans: Most common with small business loans. You repay a consistent amount each month, ideal for budgeting. The advertised APR is 7.9%, with no interest in year one for some products​.
• Variable rate loans: Available on larger structured loans (e.g. over £25,001), where rates may track the Bank of England base rate or other benchmarks. These are often tailored to your risk profile and repayment plan​.

Larger loans may also come with bespoke pricing, meaning the interest rate is negotiated based on business performance, security offered and loan term.

Step-by-step guide to your Santander business loan application

Santander provides a clear process for applying for a business loan:

1. Define your need: Know how much you want to borrow, how long for, and what it will fund.
2. Check eligibility: Use Santander’s criteria or consult a relationship manager.
3. Prepare documents: Gather your business plan, cash flow forecast, historic accounts, and director/owner profiles​.
4. Submit application: You can apply online, via phone, or in-branch depending on your loan type.
5. Credit & affordability check: Santander will assess your ability to repay and may request additional details.
6. Get a decision: Timescales vary, but smaller loans can be processed faster than larger, structured deals.
7. Receive funds: Once approved and agreed, funds are typically transferred directly into your Santander business account.

Contacting Santander for a business loan: key details and support channels

Santander offers several ways to get in touch for business lending support:

• By phone: Call 0330 678 2581 (Mon–Fri, 8am–6pm) for small business loan queries​.
• Online: Visit the business banking section of the Santander website to explore lending options or use eligibility tools.
• In person: Santander has 800+ branches across the UK. You can book a one-to-one appointment with a business banking specialist.
• Via relationship managers: For larger or structured loans, Santander provides access to a dedicated relationship director who helps tailor the lending solution​.

Exploring additional services: Santander small business loan vs. commercial lending

Santander structures its lending around the size and complexity of your business.

Small Business Loan

This fixed-rate loan is available to Santander business current account holders, offering borrowing from £2,000 to £25,000 over 1–5 years. You may pay no interest for the first 12 months, and there are no arrangement fees. It’s designed for straightforward funding needs like working capital, marketing, or small asset purchases​.

Commercial Lending

If your funding needs exceed £25,001, Santander offers tailored business loans structured with the help of a relationship manager. These loans can be arranged with fixed or variable interest rates, and terms of up to 25 years, making them suitable for large-scale investments or refinancing. Security may be required, depending on the loan size and risk profile​.

Growth Guarantee Scheme (GGS)

This government-backed scheme, launched in July 2024, is designed to support access to finance for smaller businesses with turnover up to £45m. Under GGS:

• You can borrow from £25,001 up to £2m, over 1 to 6 years.
• Santander receives a 70% government-backed guarantee, but you remain 100% liable for the full loan.
• Personal guarantees may be required, but your primary residence cannot be taken as security.
• It’s available to businesses with a viable proposition, even if they’ve used previous government-backed loans (e.g. BBLS, CBILS, RLS)​.

GGS-backed loans aim to improve borrower terms compared to standard commercial offers. If you’re eligible, Santander may present this option as part of your application journey.

What documents do I need to apply for a Santander business loan?

To support your Santander business loan application, you may be asked to provide:

• Business plan – outlining what the funds will be used for
• Cash flow forecast – showing projected income and outgoings
• Historic accounts – typically 1–3 years of financial statements
• Director/owner profiles – to assess experience and credibility
• Security details (if applicable) – especially for larger loans
• Other business interests – to understand financial commitments​

Santander assesses your business’s ability to repay based on these documents, alongside internal credit and risk checks.

Can I pay off my Santander business loan early without penalties?

Yes, early repayments are allowed, but there are a few things to consider:

• Partial overpayments: You can usually overpay without fees on most small business loans.
• Full early repayment: This may incur early repayment charges, especially on fixed-rate or structured loans. Santander recommends contacting them first to confirm any fees that may apply​.

The terms vary by product, so it’s worth reviewing your loan agreement or calling their team before making an early settlement.

How quickly can I get approved and receive funds from Santander?

Approval and funding timeframes depend on the loan type:

• Small Business Loans: These are often faster—once you apply and pass checks, funds could be released within a few working days.
• Larger or structured loans: These may require more documentation and due diligence, so the process can take a few weeks, especially if security or tailored terms are involved​​.

Santander doesn’t guarantee same-day funding, but streamlined applications and strong documentation can help move things along more quickly.

What else should I know?

Be sure to do your research if you’re considering taking out a loan, commercial mortgage or business overdraft with Santander. Make sure you understand the terms of any business loan and make sure you’re aware of the alternatives.