Busting the lending myths

We are keen to help businesses of all sizes access the funding and support needed to back their ambitions. Here, we answer some common misconceptions associated with bank lending.

Our responses are tailored for businesses turning over £3m or less. Visit our Loans and Finance pages to find out the answers tailored to £3m-£25m.

"Banks aren’t lending, especially to small businesses"

We are lending. We approve eight out of ten loan and overdraft applications1. As a responsible lender not all loan and overdraft applications will be successful, but we may be able to support your business with alternative finance options and guidance to other sources of funding or government backed schemes.

With our Eligibility tool see how likely you are to get a Business Loan or Overdraft. View indicative interest rates and repayment details. You can try different options without affecting your credit rating.

We provide lending to support business of all sizes. Our range of funding solutions means that we may be able to help you find the right type of funding for each business need.

"Applying for lending is a difficult process"

We provide support with the application process because we understand the time pressures facing business owners. Our application process can be completed by phone or online. Our customers get instant online decisions on business loans up to £10,000.

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

Visit our Loans and Finance page for more details.

"Loans have to be secured against my personal assets and finances"

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.

"My credit rating will be damaged by a rejection"

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. With our Eligibility tool you can try different options without affecting your credit rating.

"My lack of credit history is a problem"

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 Finance Application Checklist may be able to support your application.

"My poor credit history will be a problem securing a loan or overdraft"

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.

Making sure you get a fair deal

We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.

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.

Overdrafts are repayable on demand.

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.

18 out of 10 relates to loans and overdrafts in the period November 2013 to March 2017.

Important information

Your no-obligation quote is a guide based on the information you’ve given us.The amount you can borrow and the interest rate will depend on your full application and a credit check.

We consider any other borrowing you have when you apply. This may affect your eligibility for this loan or overdraft and the rate we offer you. You must be 18 or over, with businesses registered or owners/partners who live in the UK.

Available to customers of 6 months plus with annual turnover up to one million pounds. Lending is subject to status.

Lloyds Banking Group is a financial services group that incorporates a number of brands including Lloyds Bank. More information on Lloyds Banking Group can be found at www.lloydsbankinggroup.com.

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Telephone: 020 7626 1500

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk

While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Lloyds Bank for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance.