NatWest, Barclays, HSBC, Lloyds and Santander business loans compared
For a £15,000 unsecured loan, HSBC publishes the lowest representative rate of the big five at 8.6% APR, which over 5 years costs £1,048 less than the 11.2% charged by Barclays, Lloyds Bank and Santander. Smaller loans cost more: Barclays charges 14.9% APR representative up to £5,000 and 8.5% from £15,001 to £25,000.
A representative APR is what at least 51% of accepted applicants get, and the rest can be offered more. Do not choose a bank on the headline: get an indicative quote first. NatWest, Barclays and Lloyds all say theirs does not affect your credit score.
Bank business loan rates side by side
| Bank | Amount | Term | Representative APR | Representative example | Speed |
|---|---|---|---|---|---|
| NatWest | £1,000 to £100,000 | 1 to 7 years | 12.57% on its example only | £10,000 over 22 months: £508.17 a month, £11,179.77 in total | Money within 24 hours if approved; same day if you sign by 16:30, Monday to Friday |
| Barclays | £1,000 to £25,000 | 1 to 10 years | 14.9% (£1,000 to £5,000); 11.2% (£5,001 to £15,000); 8.5% (£15,001 to £25,000) | Not published | Usually within 48 hours of signing the paperwork |
| HSBC | £1,000 to £25,000 | 1 to 10 years | 11.3% (£1,000 to £10,000); 8.6% (£10,001 to £25,000) | £13,000 over 60 months: £265.33 a month, £15,919.83 in total | Not published |
| Lloyds Bank | £1,000 to £250,000 | From 1 year (maximum not published on the page) | 11.2% (£1,000 to £25,000) | £8,000 over 60 months: £172.55 a month, £10,353.00 in total | Money within 48 hours of acceptance |
| Santander | £1,000 to £50,000 | 1 to 7 years | 11.2% (£1,000 to £50,000) | Not published | Funds can take up to 3 working days after signed documents are checked |
Each bank's own product page, checked 1 November 2026. Highest APR Santander can offer on any loan is 29.9%. Rates stated as correct at 31 March 2026. Lloyds' page offers loans up to £250,000 but gives an APR only up to £25,000.
What £15,000 over 5 years costs at each bank
Each row applies the bank's own representative APR for a £15,000 loan to a 60-month capital and interest loan. The arithmetic, using HSBC's 8.6% as the example: a monthly rate of (1 + 0.086)1/12 − 1 = 0.690%, then the standard repayment formula £15,000 × r ÷ (1 − (1 + r)−60). The same method reproduces HSBC's and Lloyds' published examples to within a few pence.
| Bank | APR at £15,000 | Monthly | Total repaid | Interest |
|---|---|---|---|---|
| NatWest | Not published | Quote only | Quote only | Quote only |
| Barclays | 11.2% | £323.62 | £19,417.31 | £4,417.31 |
| HSBC | 8.6% | £306.15 | £18,368.97 | £3,368.97 |
| Lloyds Bank | 11.2% | £323.62 | £19,417.31 | £4,417.31 |
| Santander | 11.2% | £323.62 | £19,417.31 | £4,417.31 |
The gap between HSBC and Barclays, Lloyds Bank and Santander on this loan is £306.15 against £323.62 a month, or £1,048 over the term. That is worth one phone call; it is not worth moving your business banking for unless the bank will only lend to its own customers, as Santander does.
NatWest business loan
NatWest's Small Business Loan runs from £1,000 to £100,000 over 1 to 7 years at a fixed rate. Its only published rate is a representative example of £10,000 over 22 months: £508.17 a month, £11,179.77 in total, at 11.9% fixed or 12.57% APR. Larger borrowing: From £25,001 with no upper limit on a variable rate, or up to £10m fixed. The NatWest business loan calculator on the same page gives an indicative figure for other amounts.
- Who can apply: Aged 18 or over and a director of the business; no bankruptcy or CCJ
- Account: No, a business current account with any provider will do
- Fees: No set-up, early repayment or early closure fees
- Guarantee or security: A personal, director or member’s guarantee may be required
- Checking a quote first: Quote in about 3 minutes via Online Banking without affecting your credit score
- Source: NatWest Small Business Loan, checked 1 November 2026
Barclays business loan
Barclays lends £1,000 to £25,000 unsecured over 1 to 10 years, fixed, with representative APRs of 14.9% (£1,000 to £5,000); 11.2% (£5,001 to £15,000); 8.5% (£15,001 to £25,000). You can ask for a repayment holiday at the start, with interest still building up. Larger borrowing: From £25,001 up to £25m, terms up to 25 years, fixed or variable; secured above £100,000. The Barclays business loan calculator covers unsecured loans up to £25,000.
- Who can apply: Not published on the loan page beyond status and lending assessment; not all industries
- Account: Online applications are for existing customers; new customers apply by phone
- Fees: No arrangement fees and no fees for repaying early
- Guarantee or security: Not published on the loan page
- Checking a quote first: APR estimate before you apply without affecting your credit score; calculator for loans up to £25,000
- Source: Barclays Business loan (unsecured up to £25,000), checked 1 November 2026
HSBC business loan
HSBC's Small Business Loan is £1,000 to £25,000 over 1 to 10 years, with representative APRs of 11.3% (£1,000 to £10,000); 8.6% (£10,001 to £25,000). Its published example: £13,000 over 60 months: £265.33 a month, £15,919.83 in total. Optional 3 or 6 month deferral at the start, or a January repayment holiday each year; interest still accrues. It does not publish a decision or payout time.
- Who can apply: Not published on the loan page
- Account: No HSBC business current account needed unless security over book debts is taken
- Fees: No arrangement fee; an administration fee applies if security is taken (amount not published)
- Guarantee or security: Security may be required, assessed case by case
- Checking a quote first: Eligibility checker on the page; effect on your credit file not stated
- Source: HSBC Small Business Loan, checked 1 November 2026
Lloyds Bank business loan
Lloyds offers £1,000 to £250,000, with a fixed representative APR of 11.2% (£1,000 to £25,000). Its example: £8,000 over 60 months: £172.55 a month, £10,353.00 in total at 10.65% fixed. Above £25,000 you can choose a variable rate that usually tracks Bank Rate, and the APR is given when you apply. It is the only bank here whose criteria name sole traders alongside partners and directors.
- Who can apply: Aged 18 or over; a sole trader, partner or director; turnover up to £25m for the representative APR
- Account: Applications run through the app or Online for Business
- Fees: No arrangement fees or early repayment fees
- Guarantee or security: A guarantee is required from limited companies and LLPs
- Checking a quote first: Quote up to £25,000 without affecting your credit rating
- Source: Lloyds Bank Small Business Loan, checked 1 November 2026
Santander business loan
Santander lends £1,000 to £50,000 over 1 to 7 years at a representative APR of 11.2% (£1,000 to £50,000), with a maximum of 29.9% APR on any loan. It is the narrowest door of the five: existing Santander business customers only, with ownership limits set out in its criteria below.
- Who can apply: Sole traders, partnerships, LLPs and private limited companies with no more than 2 partners or directors who own the business outright
- Account: Yes, existing Santander Business Current Account holders only
- Fees: Overpay at no extra cost
- Guarantee or security: Personal guarantee required from limited companies and LLPs
- Checking a quote first: Illustrative calculator only; a full credit check is made on application
- Source: Santander Business loan, checked 1 November 2026
Where bank small business loans stop
Barclays' and HSBC's small business loan products stop at £25,000, and Lloyds publishes an APR only up to £25,000. Above it, borrowing becomes a bespoke loan, often secured, and the rate is quoted rather than published. The Growth Guarantee Scheme starts at exactly £25,001 for term loans, and NatWest, Barclays, HSBC, Lloyds Bank and Santander are all accredited to lend under it. See government-backed business loans.
Online lenders fill the gap for speed, at a price. iwoca's homepage shows a 49% representative APR on its calculator example and lends only to limited companies and LLPs. Our business loan interest rates comparison prices bank, online lender and card-takings advance side by side on £25,000.
How to get a business loan from a bank
- Get an indicative quote that does not mark your credit file. NatWest, Barclays and Lloyds say theirs does not; Santander makes a full credit check on application.
- Have the numbers ready. NatWest asks for your trading start date, turnover for the past year and the year ahead, net profit, and existing business and personal debt repayments. Santander asks for turnover, costs, expected turnover, debt repayments and what you draw for personal use. Barclays asks for trading accounts, a business plan and profit and loss.
- Make sure Companies House matches what you tell the bank. NatWest and Santander both say a mismatch can delay or decline an application.
- Expect a personal guarantee if you are a limited company. Santander and Lloyds require one; NatWest says one may be required.
- If you are declined, ask for the reasons and use the appeal route. Santander: ask for a review within 30 days of a decline.
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Frequently asked questions
Which bank has the cheapest business loan?
On published representative rates for a £15,000 loan, HSBC is cheapest at 8.6% APR: £306.15 a month over 5 years. Barclays drops to 8.5% from £15,001 to £25,000. NatWest publishes only a 12.57% APR example on £10,000, so it cannot be priced at other amounts without a quote.
Do I need to bank with them to get a business loan?
It depends on the bank. Santander: Yes, existing Santander Business Current Account holders only. NatWest: No, a business current account with any provider will do. HSBC: No HSBC business current account needed unless security over book debts is taken. Barclays: Online applications are for existing customers; new customers apply by phone.
What does representative APR mean on a business loan?
It is the rate at least 51% of accepted applicants get; the rest can be offered more. Santander says the highest APR it can offer on any loan is 29.9%, against its 11.2% representative rate.
How fast do banks pay out a business loan?
NatWest: Money within 24 hours if approved; same day if you sign by 16:30, Monday to Friday. Barclays: Usually within 48 hours of signing the paperwork. HSBC: Not published. Lloyds Bank: Money within 48 hours of acceptance. Santander: Funds can take up to 3 working days after signed documents are checked.
Can I appeal if a bank turns down my business loan?
Usually. Santander: Ask for a review within 30 days of a decline. Lloyds: Declined applications can go to its lending appeals process. Barclays: Appeal process published on its appeal against your lending decision page. Ask the bank for its reasons in writing first, because they tell you what to fix before you apply elsewhere.