Term Loans, Overdrafts & Revolving Credit

Every business needs bespoke funding to fit its strategic aims. This is why we make it our business to understand your objectives first and foremost. The solutions we offer recognise the importance of developing real-life funding packages that help you address the needs of your business.

Simply put, we can deliver a clear-cut plan to meet your organisation’s unique needs. Your dedicated relationship director will take you through our range of loans and overdrafts and help you to select the right solution for your business.

Perhaps you need capital for growth or acquisition, or you want to consolidate your debts, or maybe it’s simply time to move your business to new premises. Whatever the case, a term loan might be the way to go. And with flexible periods, you can choose how quickly to pay it back.

Key features

  • Base rate-linked, fixed or LIBOR-linked loans available.
  • Borrow any amount from £25,000 upwards.
  • Capital repayment holidays available.
  • Flexible terms from one month to 20 years.

Daily interest calculations also help reduce the cost and it's up to you whether to have capital and interest or interest-only repayment terms. We can also provide guidance on building a risk management strategy or interest rate hedging.

Term loans

Choose between a fixed rate or variable rate loan, so you can have the most flexible repayment structure to suit your business needs.

Variable-rate loans

Linked to LIBOR or Bank of England base rate.

Fixed rate loans

No matter what’s happening with your business, a fixed-rate loan allows you to budget with certainty. You’re protected against any interest rate increases, for a period as agreed with you, to help you manage your cashflow.

As with many of our products, fixed-rate loans have a range of options. Principal and interest payments can be made monthly, quarterly, semi-annually or annually. And the interest rate can be fixed on all or part of the underlying loan amount, for all or part of the total facility maturity.

Revolving credit facilities

A flexible way to manage your liquidity and cashflow over the short-medium term. A revolving credit facility allows your business to access funding at any time over the duration of the facility at the value you require, up to an agreed limit. You can access funds as you require, effectively via a series of short-term loans. Total interest charges will be dependent on the amount of funding used. Talk to your relationship director to discuss the suitability of this product for your business’s needs.

For more information on the benchmarks please visit the Benchmark Transparency Statement (PDF)

Overdrafts

A short-term finance facility like an overdraft account is ideal for businesses with temporary or fluctuating borrowing requirements as it gives you the convenience of having standby liquidity available. Your relationship director will arrange a quick decision on an overdraft request for your corporate current account and agree your borrowing limit with you through a simple application and approvals process.

European Investment Bank loan

If you have an eligible project, we may be able to help you reduce your borrowing costs. Because we’re committed to helping our customers, we’ve entered into an agreement with the European Investment Bank to offer preferential loan rates to eligible Small and Medium Enterprises (SMEs) in England, Scotland and Wales turning over no more than the equivalent of €50m.

Key features

  • Term funding minimum of two years.
  • Minimum loan amount of £25,000.
  • Fixed or Bank of England Bank Rate terms are available.

Typical projects supported through this fund include research and development expenditure, purchase, renovation or extension of tangible assets such as business premises and the building up of distribution networks in domestic or other EU markets.

*Note that EIB applications are closed until further notice.

For more information on the benchmarks please visit the Benchmark Transparency Statement (PDF)

 

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Contact us

For more information, contact your local relationship director or use our online directory.