With branches in the UK and throughout the world, HSBC is one of the biggest names in global banking. The bank offers business finance products, business bank accounts, insurance, and many other domestic and international banking services.
HSBC Business Finance
Small business loans with fixed repayments are available from £1,000 to £25,000 at 7.1% APR Representative. Repayment terms are between 12 months and 10 years and a repayment holiday is available for the first 3 months of the loan.
A flexible business loan is available if you need to borrow over £25,000. You can choose to pay interest monthly or quarterly, over 12 months to 20 years, and you can choose to defer up to two monthly repayments each year. Depending on the project you want to finance your business can also pay an interest only period of up to 24 months. You don’t need an HSBC business current account to be eligible for either loan.
HSBC business current account customers can access an overdraft facility for between 1 and 12 months at a representative EAR of 10.36% variable. You pay interest only on the amount you use, which is calculated daily. An arrangement fee also applies, as well as a renewal fee every 12 months. A multi-currency international overdraft is also available for HSBC International Business Account customers.
Business credit cards
HSBC’s Commercial Card is available at 22% APR representative variable based on an assumed limit of £1,200. Your card includes up to 56 days’ interest-free credit and no annual fee for the first year. After that it’s £32 each year.
Commercial mortgages are available from £25,001 with no maximum limit over a repayment period of 2 to 30 years. Your business can borrow up to 75% of the purchase price or professional valuation, whichever is lower, and choose a fixed or variable rate. There are optional repayment holidays available for all or part of the first 24 months.
Tailored finance is available for a range of assets, including vehicles, IT equipment, industry equipment, and more. This includes hire purchase, lease agreements, operating leases and more.
Invoice discounting and factoring are available. Your business get up to 90% of the value of your invoices the next working day and you can choose whether you manage your own sales ledger or HSBC does it for you. Credit protection is available to protect your business against bad debts and late payment. Arrangement fees apply.
HSBC Reviews and Ratings
Reviews are poor across the main review sites. 87% of Trustpilot reviewers are so unhappy they give HSBC 1/5 and Reviews.co.uk and Smart Money People comments are similar. On the whole, customers are unimpressed with waiting times, the quality of customer service, and think processes are too complex.
Which? gives HSBC a Customer Score of 66%. HSBC business accounts score 4/5 for mobile banking, 3/5 for customer service, application process, communication, transparency of charges, service in-branch, telephone banking, and just 2/5 for complaints handling.
HSBC ranked joint 3rd in a list of the 14 largest business current account providers for SME overdraft and loan services in an independent survey.
In the same list of 14 business current account providers, HSBC also ranked joint 7th for overall service quality, 10th for relationship/account management, joint 6th for online and mobile banking services, and joint 9th for service in branches and business centres.
HSBC is one of the British banks lending to businesses during the Coronavirus crisis. It was reported in July 2020 that a “glitch led to thousands of small business loans in the wrong name”. HSBC say the error only affected a small percentage of applications and details will be amended for customers affected.
- Repayment holidays and interest-only payment options available across business finance products.
- Ranks well for SME overdraft and loan services in an independent survey.
- Business loans can be fixed or flexible.
- Poor online reviews, particularly when it comes to customer service and waiting times.
- Average rating on Which?
Website: HSBC Business Finance