TSB business loans: features, eligibility and alternatives

If you have a TSB account, you can apply for the bank’s business loans, including base rate and fixed-rate options. These loans cover short- and long-term borrowing needs, from working capital to large-scale expansion plans, and are open to sole traders, LLPs, limited companies and partnerships.

We review the main features, rates and costs of TSB business loans, plus key eligibility criteria and alternative options to consider.

Exploring TSB’s business loan options and key features

TSB offers two main business loan options to suit different preferences: one with a variable interest rate tied to the Bank of England’s base rate, and the other with a fixed interest rate. 

Below, we’ve provided a brief overview of each loan option and what businesses can expect.

Be aware that the features, rates and fees mentioned in this TSB business loan review are accurate as of 16 October 2026 and sourced from TSB’s business lending pages. If you’re considering applying or comparing loans with other solutions, check the latest terms.

Base rate loan

This business loan is tied to the Bank of England (BoE) base rate, so the rate moves up or down according to base rate changes. However, it’s not equivalent to the base rate, as TSB adds its commercial margin on top.

Key features:

• The minimum borrowing amount is £25,001, with no stated upper limit, as amounts are subject to your business circumstances and funding needs

• Repayment terms range from 1 to 25 years

• Interest rates are variable and linked to the BoE base rate

• Assets may be required as collateral to secure the loan

Fees involved:

• Arrangement fees apply. Fees can be found here

• You may need to pay security and asset valuation fees if the loan is secured

• Early loan settlement fees may apply

Fixed-rate loan

TSB’s fixed-rate business loan offers more predictable repayments with a fixed interest rate for the full term, which makes financial planning and cash flow management simpler.  

Key features:

• Secured and unsecured loans are available

• Businesses can borrow between £1,000 and £25,001 for unsecured options, and between £25,001 and £1,000,000 for secured loans.

• Repayment terms range from 1 to 10 years

• Interest rates and monthly repayments are fixed 

Fees involved:

• Arrangement fees apply, between £100 and £250 for loans up to £25,000, and charged at a rate of 1.5% for loan amounts beyond £25,000 (with a minimum fee of £250).

• Early loan settlement fees apply, and loans of over £25,000 incur break costs, linked to market rates at that time.

Other fees may apply, depending on your circumstances and borrowing needs. So, check the website’s current details, any terms stated during loan applications and costs outlined in agreements once an application is offered. 

Other business finance solutions from TSB

In addition to these base rate and fixed-rate loans, TSB also offers other business lending solutions, including: 

• Commercial mortgages: Loans on property for business for 1 to 25 years, starting from £25,001 with a loan-to-value (LTV) of up to 70% (and more in some cases). Base rate and fixed-rate options are available, with security required and arrangement fees charged.

• Business overdrafts: A buffer credit line directly linked to your TSB business bank account, with rates and limits tailored to your specific needs. You only pay interest on what you use, and security may be required in certain cases. 

TSB also partners with Funding Options to help businesses find suitable finance facilities, scanning and matching options from its panel of lenders. 

Who can apply, and what TSB asks for

A wide range of businesses can apply for TSB business loans, including sole traders, partnerships, LLPs and limited companies, as long as your business is based in England, Scotland or Wales (not Northern Ireland). However, you need to have an existing TSB account and be 18 or over to apply. 

You may need to pledge assets as collateral to secure the loan amount and/or provide a director’s guarantee. 

During the application process, you’ll be asked to provide some or all of the following:

• The purpose of the loan and business plans

• How much you’re looking to borrow

• Your preferred borrowing period (number of years) and how you intend to repay the loan

• Key business information, including owner, director and management team details, and confirmation of entity structure

• Details of any existing borrowing commitments, business assets and liabilities

• Historical financial accounts, including balance sheets and cash flow statements, and cash flow forecasts

• Confirmation of assets to be used as collateral in secured loan agreements, plus their estimated values

The bank will assess your details and credit history before potentially confirming how much you can borrow, your interest rate, and the repayment terms. 

TSB business loan rates

TSB’s base rate loan interest rate isn’t published on the bank’s website, as it’s a variable rate which changes with the BoE base rate. Still, the actual rate you’ll get will include TSB’s mark-up and will differ depending on your particular lending needs and financial situation. 

For its fixed-rate business loan, TSB states its lowest rate as 9.94% APR representative (based on an example loan of £13,000 over 60 months.* But again, the rate you receive depends on numerous factors. 

*This was checked on 16 October 2026. For a full outline of TSB business loan rates and a breakdown of likely fees and borrowing costs, head to TSB’s dedicated business lending rates page.

Which bank loan calculator to use

Many banks and digital lenders include loan calculators on their websites so potential borrowers can work out likely loan costs and monthly repayments. You can enter the amount you want to borrow and your preferred loan term, and the tool usually applies a representative APR to show how much you’d pay over the duration of the loan (including various fees).

Unfortunately, TSB only has a loan calculator for personal loans and mortgages, not a business loan calculator.

But you can use non-brand-specific tools, like Sage’s business loan calculator, which lets you add how much you intend to borrow and for how long, plus an approximate interest rate, frequency and other costs. So, you can add in TSB’s example rates and fees (from above) and your preferred loan amount/period to get a decent estimate.

Note, using  loan calculators will give you an indicative idea of what loan repayments could look like. Loan amounts and rates are subject to full credit and identity checks. 

What to weigh up when comparing business loans

When reviewing TSB’s business loans (or comparing loans from other providers), you should weigh up various suitability factors such as: 

• Account requirements (i.e. if you need to be an existing account holder)

• Whether the term length options and loan amounts meet your needs

• The flexibility level (in terms of how you repay and if you can settle early)

• Estimated interest rates and whether a fixed- or variable-rate option is more suitable (and cost-effective)

• Total borrowing costs (including fees that may be applied)

• Whether collateral or guarantees are required (and if you’re happy to carry the risk)

These factors help you judge which loan options make the most sense for your business plans, cash flow and funding requirements.

Alternatives to a TSB business loan

While TSB offers secured and unsecured loans (and fixed-rate and variable-rate options), there are numerous alternative small business loans by other UK banks and lenders which may better suit your needs. So, shop around to compare providers’ features, rates and benefits, and use calculators and eligibility checkers to see whether you’ll qualify and estimate borrowing costs without impacting your credit score.

Flexible business loans

For more immediate or short-term funding requirements, Funding Circle offers flexible short-term loans for small businesses. You can borrow up to £250,000 for between 6 and 12 months.

We also offer business loans for longer-term funding needs. This unlocks higher borrowing amounts up to £750,000, to repay in predictable monthly instalments over 6 to 72 months.

Alternatively, explore FlexiPay, our cash flow companion that lets you spread the cost of business purchases across 1, 3, 6, 9 or 12 months for a flat fee from 1.99% per transaction. Acting as a revolving line of credit, you only pay for what you use, and the limit replenishes as you repay what you’ve borrowed.

Funding Circle’s key loan terms, rates and eligibility requirements 

UK limited companies and LLPs that have been trading for at least a year can apply for a Funding Circle business loan, without affecting their credit score. There’s no minimum turnover limit and zero charge for early repayment.

Here’s what you need to know about our term loans:

• Borrow from £10,000 to £750,000

• Get a fixed interest rate for predictable monthly repayments

• Repay loans between 6 months and up to 6 years

• Apply easily online in minutes and get a decision in as little as 5 minutes

• There are no additional fees or early settlement charges

• Interest rates start from 6.9% per year, quoted annually and fixed for the term

Use our business loan eligibility checker to see if you qualify and what your likely repayments and costs will be. 

*We do offer secured loan agreements, subject to circumstances, and you may need to provide a personal guarantee.

TSB business loan FAQs

What business loans does TSB offer?

TSB offers a base rate loan and fixed-rate loan, plus other lending products including overdrafts and commercial mortgages, while also providing access to Funding Options’ panel of lenders. The bank's loans cover short- and long-term borrowing needs, with secured and unsecured loan agreements and a choice of fixed or variable interest rate formats.

Can I still apply for a TSB Bounce Back Loan?

No. The Bounce Back Loan Scheme (BBL) closed for new applications on 31 March 2021, but those still needing to repay their Bounce Back Loan can explore Pay as You Grow (PAYG), which offers flexible repayment options. The British Business Bank manages these, and other banks, like TSB, support them. Head to TSB’s PAYG page to understand your options.

What are TSB business loan rates?

TSB’s business loan rates vary, depending on factors such as the type of loan you choose, the amount you want to borrow, your preferred repayment period, whether the loan needs to be secured, plus your creditworthiness. However, the base rate loan is tied to the BoE base rate (which is variable). The fixed-rate loans have a 9.94% representative APR (fixed) based on an example loan of £13,000 borrowed over 60 months.

Get full details of TSB’s advertised business lending rates.

Is the TSB loan calculator for business loans?

No. TSB only has a personal loan calculator available on its website, not one specifically for business loans. But you can create an estimate in a generic loan calculator, adding in the amount you want to borrow, preferred term and TSB’s representative rates and potential fees.

Disclaimer 

17/11/26 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial, tax or legal advice. Readers should seek independent tax advice from a qualified professional. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.