Halifax no longer offers business loans directly, but there are a range of high street and online lenders to choose from, including iwoca’s fully digital Flexi‑Loan for fast, flexible funding with no hidden fees.
0
min read
Halifax has been a presence in the banking world since 1852, originally as a building society, and laterally as a high-street bank. But with the bank now part of the Lloyds Banking Group, Halifax has ceased offering business banking to new customers.
Halifax no longer provides business banking or direct business loans. The bank is now part of the broader Lloyds Banking Group that includes Lloyds Bank and Bank of Scotland, among other banking and insurance brands.
All of Halifax’s business banking services have been transferred to either Lloyds Bank or Bank of Scotland. So, although banking and business loans are not available directly through Halifax, some services are still available.
Lending products, including business loans are available to your business through Lloyds Bank. Lloyds offers a range of business loans, including small business loans, asset finance and commercial mortgages.
If you’re a sole trader, you can take out a personal current account with Halifax, as there’s no legal requirement for sole traders to have a business account.
However, we’d strongly advise you to take out a full business account and to keep your personal banking and business banking entirely separate.
Following on from the 2009 financial crisis, Halifax Bank of Scotland (HBOS) was acquired by Lloyds TSB to form Lloyds Banking Group. After this merger, Halifax focused on retail and personal banking as a popular high-street bank.
Halifax’s business services were then consolidated under the Lloyds Banking Group strategy, with the bank’s focus shifting to mortgages, savings and current accounts, rather than small business lending.
Lloyds Bank is now the central brand for all business loans within the group, as part of this ongoing strategy.
If you’re a new customer, you can’t open a Halifax business banking account. To start a business banking relationship, you’ll need to open a business account with either Lloyds Bank or Bank of Scotland.
Let’s take a closer look at what services are offered for existing Halifax customers and new Lloyds Banking Group customers.
Lloyds Banking Group offers:
If your UK-based small business needs a business loan, there are plenty of options to choose from, whether you opt for a high-street bank or an alternative lender.
The Big Four banks offer a wide range of secured and unsecured business loans, usually with a significant focus on lending to businesses that can demonstrate a good business credit score and a solid credit profile.
Aside from Lloyds Bank, you could consider business loan products from NatWest, Barclays or HSBC.
If your company has a limited trading history and credit profile, getting approval on a loan from the Big Four banks may be a challenge. However, there are alternative lenders and specialist business finance providers to explore.
These specialist or digital-only lenders place less emphasis on your business credit profile and more on your future revenue potential and forecast cash-flow position.
iwoca, OakNorth Bank and Starling Bank all offer business loans that are tailored for established small businesses that can prove their viability as a successful enterprise.
And business loans are not the only option. There are also specialist finance platforms that offer invoice finance, business credit cards, merchant cash advances and more.
The type of business finance that best suits your needs will depend on a number of factors. It’s good practice to think through why the loan is required and whether the business can afford to take on this kind of debt.
Here are some key factors to consider
Why is the additional funding needed? Does the business need extra working capital to continue trading? Is funding needed to power your growth strategy? Or do you need to buy an essential new asset or piece of equipment to stay competitive? Look for a finance product that’s most suited to your specific funding need.
How flexible is the business loan you’re considering? What’s the upper lending limit and is it enough? Can you make early repayment without incurring a penalty? How competitive are the interest rates and are they fixed or linked to inflation?
Taking on a loan is a significant commitment for your business, so you need to be confident that you can afford the repayments and that the terms are fair.
If your funding need is urgent, how quickly can you get the funding? How complicated and time-consuming is the application process? And can you apply online? What business information and documentation is needed to verify your business?
The more streamlined the application and approval processes are, the easier it will be to quickly access the funds you need.
You can still access business finance through established lenders, specialist lenders like iwoca that offer fast, flexible borrowing, challenger banks such as Starling and Tide. There are also government‑backed schemes like the Growth Guarantee (which lets eligible businesses borrow up to £2 million), or alternative products such as asset finance for equipment and invoice finance to smooth your cash flow.
Lenders will generally be looking for businesses that can be classed as ‘low-risk borrowers’. In other words, to get your loan application approved, the lender will want to see evidence that you can make the repayments and honour the loan.
Factors to think about when making your loan application include:
To maximise your chances of loan approval, present your business as low‑risk by maintaining a strong credit profile, forecasting accurate cash flow, and supplying lenders with clear, up‑to‑date financial documentation, then pick a lender whose eligibility criteria match your needs.
Focus on:
At iwoca, we're always to support the next stage in your business growth. Whether you need a loan to manage your working capital, or to fund your expansion plans, we’ve got flexible, straightforward ways to get you the money you need.
Our Flexi-Loan makes it easy to:
