Lloyds business loans: what replaced Lloyds TSB lending

Lloyds business loans are the term loans and other business finance offered by Lloyds Bank, one of the UK's large high street banks. If you are searching for "Lloyds TSB business loans", that brand no longer exists: Lloyds and TSB separated in 2013, and business lending that used to carry the Lloyds TSB name now sits with Lloyds Bank. This page explains what changed, what a bank such as Lloyds typically looks for, and your options if a bank loan does not fit. Smart Funding Solutions is an independent broker and is not affiliated with Lloyds Bank, Lloyds Banking Group or TSB.

01What happened to Lloyds TSB business loans?

Lloyds TSB was the brand used after Lloyds Bank and TSB merged in the 1990s. When TSB was separated and relaunched as an independent bank in 2013, the Lloyds TSB name was retired. If you had a Lloyds TSB business account or loan, it will now sit with either Lloyds Bank or TSB, and each bank sets its own business lending products and criteria.

02Types of business finance a bank like Lloyds offers

• Fixed-term business loans: a lump sum repaid over an agreed term, for investments such as equipment, premises improvements or expansion.
• Overdrafts: short-term flexibility for day-to-day cash flow.
• Asset finance: hire purchase and leasing for vehicles, machinery and equipment.
• Invoice finance and asset-based lending: borrowing against receivables, stock or equipment, often used by larger businesses.
• Commercial mortgages: long-term borrowing to buy or refinance business premises.

Product names, limits, rates and features change over time. Check Lloyds Bank's current business lending information before applying rather than relying on any third-party summary, including this one.

03What a high street bank will look at

Like other major banks, Lloyds assesses business loan applications on the business's and directors' credit history, trading performance, cash flow and affordability, existing debt, the purpose of the loan and, for larger amounts, security or personal guarantees. Existing customers may benefit from the bank already seeing their account conduct. Our guide to how lenders assess business loan applications explains each factor in more detail.

Banks tend to weight filed accounts and several years of profitable trading heavily. Newer businesses, those with thin margins or past credit problems, and some sectors seen as higher risk are more likely to be declined or asked for security.

04Documents to prepare

£50,000A transaction we arrangedHistoric loss. Improving numbers. £50K secured for dental growth.Several lenders focused on the previous year's numbers. We focused on what had changed.

05Applying to a bank and how long it takes

Existing customers can usually apply online or through a relationship manager. Smaller unsecured loans can be decided relatively quickly, while larger or secured loans may involve meetings, valuations and legal work, which take longer. Our guide to how long a business loan takes covers typical timescales across lender types.

06If a bank loan is not the right fit

A decline from a high street bank does not mean every lender will refuse. Alternatives include:

• unsecured business loans from online and specialist lenders, which may weigh recent bank statements more heavily
• asset finance, where the equipment or vehicle provides security
• invoice finance, releasing cash tied up in unpaid invoices
• lenders that consider past credit problems

See UK banks compared with alternative lenders for the trade-offs and what to do after a decline.

07How an independent broker can help

We compare options across our panel of 300+ lenders, which includes banks and alternative lenders, whether or not you have already approached your own bank. If a bank has declined you, tell us the reason it gave: a short trading record, thin margins or a credit issue each point to different lenders. Lenders make the final decision.