Busting the lending myths

Lloyds Bank is keen to help businesses of all sizes access the funding and support they require. Whether you bank with Lloyds Bank or not, we want to help you benefit from the investment you need to back your growth ambitions. Here, we answer some common misconceptions associated with bank lending.

Our responses are tailored for businesses turning over £1m-£25m. Visit our alternative Busting the lending myths pages to find out the answers tailored to £0-£1m.

We’ll consider applications from your business no matter who you bank with, and would be keen to provide a fresh view of your current business finance.  

You can take advantage of tailored funding packages which suit your specific needs without having to switch banks to benefit3. However, if you do decide to switch your main bank account to Lloyds Bank it only takes 7 days, helping take the hassle out of moving.

In our 2015 SME Charter Lloyds Banking Group pledged to grow our lending by at least £1 billion per year and by £3 billion net over the next three years. Having grown our lending for five consecutive years, this pledge will help us maintain our growth, at a time when net lending across the banking industry as a whole continues to decline.

This commitment is supported by our eight out of ten approval rate on all loan and overdraft applications1.

We provide support to ease the application process because we understand the time pressures facing business owners. Our straightforward application process can be completed with your Relationship Manager, supporting our focus on quick decision making.

Our website also provides a checklist to ensure applicants have all the information they need before they apply.

Visit our Loans and Finance page for more details.

We know how important quick decisions are to your business. If your business has a turnover between £1m and £25m, your Relationship Manager is empowered to use their knowledge of your business to make informed decisions on lending - which can help speed up the approval process. Speak to your Relationship Manager for details and timings on your lending requirements.

We provide lending to support business of all sizes, including start-ups, SMEs and organisations turning over tens of millions of pounds. Our range of funding solutions means that we can help you find the right type of funding for each business’ need, including alternative forms of funding if a loan or overdraft is not appropriate.

Securitisation for lending isn’t always necessary or required. We will only seek security where appropriate, on a case by case basis, reflecting risk and type of facility. We can also support your ambitions through government led schemes, which are suitable for a range of different circumstances.

During the application process, we will request your permission to carry out a credit assessment. Unless your credit history shows multiple applications, your credit rating shouldn’t significantly deteriorate. Lenders are likely to see occasional enquiries as part of a typical business process. If we do reject your application, we can discuss alternative finance options or refer you to our appeals process.

A lack of credit history isn’t necessarily a problem. Credit history is just one aspect of what we consider when assessing a loan or overdraft application. Our decision also considers business plans, the reason for the funding application, repayment strategies and the financial controls in place to support them. Many of the 520,0002 business start-ups we have supported since 2010 have come with limited credit history.

Lending decisions depend upon the circumstances of each business. We review each business on a case by case basis and assess their overall risk profile. We may be able to offer funding with certain terms or alternative sources of finance. The key thing is not to be deterred from trying if it’s what your business needs to grow.

Loan calculator

Calculate your monthly repayments with our easy-to-use tool.

Finance selector

A convenient way to help you decide which of our finance options could be right for your business.

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.