The Bank of Scotland is one of the oldest banks in the UK and has been part of Lloyds Banking Group since 2009. Business finance and loans, savings accounts, debit and credit cards, and other financial products are available to businesses of all sizes. The Bank of Scotland’s business finance products are tailored to businesses with £0-£3 million turnover, £3-£25 million turnover, and £25 million+ turnover.
Bank of Scotland Business Finance
There are a variety of fixed and variable rate loans available to large and small businesses. Amounts range from £1,000 to £1 million and can be repaid over 1 to 25 years. Most small businesses can borrow between £1,000 and £50,000 over 1-10 years. Interest rates are 5.1% APR (variable) representative. Larger businesses with over £3 million in annual turnover will have to pay a 1.5% arrangement fee when they take out a loan.
Overdrafts up to £25,000 are available with a Bank of Scotland business current account at 9.75% per year over the Bank of England Rate. On overdrafts of £5,000 or less there’s a £10 monthly fee, and overdrafts of £5,001 to £25,000 have a 1.75% Annual Fee (minimum £120). Overdrafts of over £25,000 are available with tailored rates – pricing will be discussed on application.
Business credit card
Your business can apply for a card with a limit of £10,000 with up to 45 days’ interest free credit if you pay your balances are paid in full and on time. The Bank of Scotland will issue up to 20 cards for different members of your team. There’s an annual fee of £32 per card.
Commercial mortgages are available from £25,001, repaid over 3 to 25 years. You can choose whether your interest rate is fixed or linked to the Bank of England base rate. Your business can borrow up to 70% of the property value and sometimes more depending on the circumstances. Residential buy-to-let mortgages are also available with similar terms.
Your business can finance a range of business assets with Bank of Scotland, including vehicles and office equipment. Borrow from £7,500 over 1 to 5 years with a flexible initial deposit. You can apply over the phone and receive a decision within 24 hours.
Vehicle Contract Hire
Fund vehicles for your business without purchasing them. The Bank of Scotland will buy the vehicles you want, lease them to your business through Lex Autolease, and take them back at the end of the contract. Monthly payments are fixed and can be more VAT efficient for your business.
Access up to 90% of the value of your invoices within 24 hours without waiting for payment. Invoice factoring is available for businesses with a turnover up to £50,000 and discounting is available up to £250,000.
Bank of Scotland Reviews and Ratings
Most online reviews for the Bank of Scotland are critical which is fairly common for one of the big British banks. 73% of Trustpilot reviewers rate their service 1/5 and have found many aspects of customer service and account management frustrating. It’s a similar story on Reviews.co.uk and Smart Money People. There are a few happy customers who found managing their account simple and convenient.
On Which?, the Bank of Scotland scores 4/5 for online banking and 3/5 for customer service, application process, communication, transparency of charges, and 2/5 for complaint handling.
Bank of Scotland ranked 9th in a list of the 14 largest business current account providers for SME overdraft and loan services in an independent survey. They also ranked 10th for overall service quality and online and mobile banking services, 7th for services in branches and business centres, and 11th for relationship and account management.
- Range of business finance products available to fund all kinds of business purchases.
- Fixed and flexible repayment options.
- Available to small and large businesses.
- Online reviews are poor.
- Doesn’t rank as well as other business banks in an independent survey.
Website: Bank of Scotland Business Finance