Lloyds Bank business loan
Who qualifies, and the alternatives if you're declined. Typical criteria: Established Ltd company, 2+ years trading, clean credit, existing Lloyds business account ideally. Personal guarantee from a director typical. Ticket range £1k to £500k+ unsecured; larger via secured facilities. If the bank declines, the specialist UK lenders below may consider some cases the high street turns down. This is information, not a credit decision.
Quick verdict
- Owner: Lloyds Banking Group plc.
- Ticket band: £1k to £500k+ unsecured; larger via secured facilities.
- If declined, the first 3 of 4 alternatives to look at are: iwoca for working capital up to £100k+, Funding Circle for unsecured term loans, Allica Bank for £150k+ secured / asset-backed.
At a glance
- What they offer
- Unsecured and secured business loans up to £500k+ for existing Lloyds business banking customers.
- Owner entity
- Lloyds Banking Group plc
- Ticket range
- £1k to £500k+ unsecured; larger via secured facilities
- Typical criteria
- Established Ltd company, 2+ years trading, clean credit, existing Lloyds business account ideally. Personal guarantee from a director typical.
- Decision pattern
- Initial decision via online application or business manager. Detailed underwriting against full accounts and bank statements. 5 to 15 business days for full decision on larger tickets.
Common decline reasons
- Sub-2-year trading or insufficient turnover.
- Recent CCJs or missed payments.
- Concentration risk in the customer base.
- Sector exclusions (gambling, adult, CBD, vape).
If you have been declined
Lloyds will provide a decline reason on request. Use it to pick a specialist alternative rather than reapplying to other high-street banks (their criteria are similar).
Alternatives to consider
- iwoca for working capital up to £100k+
- Funding Circle for unsecured term loans
- Allica Bank for £150k+ secured / asset-backed
- JPM Capital or Bizcap for post-decline cases
What to have ready before you apply
A UK bank or its lending partner will typically ask for the following before issuing a decision:
- Two years of filed accounts plus current management accounts.
- Six to twelve months of business bank statements.
- Director identification and proof of address.
- A clear written summary of how the funds will be used and how they will be repaid.
- Personal guarantee paperwork for limited-company directors (standard for most SMB bank facilities).
This is a generic UK SMB-bank application checklist. Lloyds Bank may ask for additional documents specific to the facility type or sector.
FAQ
How big a ticket does Lloyds Bank cover?
£1k to £500k+ unsecured; larger via secured facilities. How Lloyds Bank makes the decision, and how long it takes, is under At a glance above.
Why does Lloyds Bank decline applications?
First on the list: Sub-2-year trading or insufficient turnover. The rest are listed under Common decline reasons above.
What should I do if Lloyds Bank declines my application?
Lloyds will provide a decline reason on request. The next steps are under If you have been declined above.
What are the best alternatives to Lloyds Bank?
It depends on why you were declined and how much you need. We list 4 options under Alternatives to consider above, each with what it suits.
Related banks
Looking for something different?
- For invoice finance, see MarketInvoice.
- For card terminals and merchant accounts, see TakeCardPayments.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
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