1. Loan Types & Amounts
Small Business Loan: £1,000–£25,000, repaid over 1–10 years; fixed interest 11.3% APR up to £10k, 8.6% APR on higher amounts business.hsbc.ukiwoca.co.uk
Kinetic Small Business Loan (for sole traders/single-director companies): £1,000–£10,000, 1–10 years, 11.3% fixed APR, fast app via app-based platform iwoca.co.ukbusiness.hsbc.uk
Flexible Business Loan: For loans over £25k up to £30m; terms 1–20 years; fixed or variable rates iwoca.co.ukfleximize.com
🎯 2. Eligibility Criteria
To qualify:
Be 18+ and UK resident (mostly >3 years residency) finder.com
Operate as a sole trader, partnership, or limited company in the UK iwoca.co.ukfleximize.com
Have a good credit history (no CCJs or bankruptcies) finder.com
Show ability to repay via cash flow or appropriate security (e.g., assets, debentures) finder.comiwoca.co.uk
🗂️ 3. Required Documents & Financial Information
You’ll need to provide:
Details about your business operations, projected use of funds, cash-flow forecasts finder.combusiness.hsbc.uk
Financial accounts (P&L, balance sheet) and bank statements
For Growth Guarantee or Recovery Loans: 3 years of annual accounts smartserve.hsbcbusiness.hsbc.uk
Security documentation if loan is secured (property, assets, guarantees) finder.combusiness.hsbc.uk
🛠️ 4. Application Process
Determine loan type: Choose Small Business, Flexible, Kinetic, or government-backed loan
Gather documents: Income, accounts, forecasts, security papers
Apply:
Existing customers: Apply online via Business Internet Banking
New customers: Apply by phone or visit a branch; turnover ≤£2m can be served by local branch/business manager business.hsbc.ukfleximize.com
Larger businesses (turnover >£6.5m): Apply via Corporate Centre business.hsbc.uk
Credit and affordability checks: HSBC will assess business viability briefly via credit review
Loan offer & disbursement: If approved, setup legal/security agreements then funds are released
💷 5. Fees, Rates & Other Key Features
Arrangement fee:
Small Business Loan: £100 fleximize.com
Flexible/Commercial: e.g., 1.5% of loan value for large loans business.hsbc.ukbusiness.hsbc.uk
Interest types:
Fixed interest on Small and Kinetic loans
Fixed/variable rates for flexible or larger loans iwoca.co.ukbusiness.hsbc.uk
Repayment flexibility:
Monthly or quarterly
Capital repayment holidays available (up to 24 months, interest still accrues for larger loans) business.hsbc.ukiwoca.co.uk
Early repayment:
Small loans: often no penalty
Flexible loans: may incur prepayment/break fees if fixed-rate period applies business.hsbc.ukiwoca.co.uk
✅ Summary & Next Steps
✅ Checklist for Application:
Choose loan amount & type
Gather: business plan, financials, bank statements, security documents
Apply via online, phone, or in‑branch (depending on turnover level)
Undergo credit review
Sign agreements & get funds
Here are 5 Frequently Asked Questions (FAQs) about HSBC UK Business Loan:
❓1. Who can apply for an HSBC UK business loan?
Answer:
Any UK-based sole trader, partnership, or limited company with a good credit history and the ability to repay can apply. The business must be registered and operating in the UK.
❓2. How much can I borrow with an HSBC business loan?
Answer:
You can borrow between £1,000 and £25,000 with a Small Business Loan. For larger needs, Flexible Business Loans are available for amounts over £25,000 up to £30 million.
❓3. What documents are required for the application?
Answer:
Common documents include:
Business plan or purpose of loan
Financial accounts (P&L, balance sheet)
Recent bank statements
Cash flow forecasts
Security documents (for secured loans)
❓4. How long does the approval process take?
Answer:
Approval time depends on the loan type and amount. For existing HSBC customers, small loans may be approved within a few working days, while large secured loans can take longer due to legal and valuation checks.
❓5. Are HSBC business loans secured or unsecured?
Answer:
Small Business Loans and Kinetic Loans are typically unsecured.
Flexible Business Loans and larger commercial loans may require security, such as property, assets, or director guarantees.
Looking to grow your business in the UK? Discover how to apply for an HSBC UK Business Loan. Learn about loan types, eligibility criteria, required documents, and a step-by-step application process. Whether you’re a sole trader or a growing company, HSBC offers flexible options from £1,000 to £30 million to support your business goals.