Virgin Money business loans: what's on offer and how they compare

Virgin Money, now part of Nationwide, lends to UK businesses from £30,000 to £10m over up to 20 years, with variable and fixed rate offerings. The solutions suit established companies borrowing larger sums. If you're a limited company with shorter-term funding needs, or you need faster access to finance, alternatives like iwoca's Flexi-Loan can be a better fit.

We look at the main features and eligibility criteria for Virgin Money's business loans and how they compare with a flexible, unsecured loan.

The number to check first: Virgin Money's smallest business term loan is £30,000. A Flexi-Loan starts at £1,000. We checked Virgin Money's own pages on 12 October 2026.

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What business loans does Virgin Money offer?

Virgin Money has three business loans: a Base Rate Loan and a Fixed Rate Loan, both from £30,000 to £10m, and a SONIA Loan for companies with turnover over £6.5m borrowing more than £2.5m. It also lends through the government's Growth Guarantee Scheme.

Here's an overview of each:

• Base Rate Loan – a variable rate set above the Bank of England base rate, so your repayments rise and fall with it. Terms run up to 20 years. You can pay interest monthly or quarterly, choose capital and interest or interest only, and pay the loan off early without fees.
• Fixed Rate Loan – a fixed rate for up to five years. You can borrow for up to 20 years in total, but after the fixed period you move onto a Base Rate Loan for the rest of the term.
• SONIA Loan – for larger companies. The rate tracks the Sterling Overnight Index Average, which is published daily and compounded over each interest period. Virgin Money offers it as a loan or a revolving credit facility of £2.5m and above.
• Growth Guarantee Scheme loans – government-backed term loans. Scroll down for our dedicated section on these.

Details sourced from Virgin Money's product pages, correct as of 12 October 2026.

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Virgin Money vs a Flexi-Loan: side by side

So, how do these products compare with a Flexi-Loan? The biggest differences are the loan size limits and speed of access. Virgin Money's SME loans start at £30,000 and the bank typically responds to applicant enquiries within seven days, while a Flexi-Loan offers amounts from £1,000 to £1m with a decision given within 24 hours. Virgin Money provides options for larger amounts and longer terms, subject to status.

Here's a handy comparison table (excluding SONIA Loans):

Virgin Money facts from uk.virginmoney.com, checked on 12 October 2026. Flexi-Loan facts from iwoca.

A Flexi-Loan is a business loan with flexible repayment options. You get a limit, draw what you need and pay interest only on what you've drawn. Virgin Money's main loans are term loans: you borrow a set amount and repay it over the term.

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Who owns Virgin Money now?

Nationwide Building Society owns Virgin Money. Nationwide bought it on 1 October 2024, and Virgin Money's business legally moved to Nationwide on 2 April 2026. Loans are still sold under the Virgin Money name.

For business borrowers, Virgin Money says the transfer hasn't changed the terms on existing borrowing: your term, interest rate and payments stay the same. Nationwide says you'll still see the Virgin Money brand "for now" and should keep using Virgin Money's apps, website and contact numbers.

One thing to watch: Nationwide Finance, the business lender covered in our guide to Nationwide business loans, is a separate company from Nationwide Building Society.

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Who can borrow from Virgin Money?

To apply, you must be 18 or over, based and operating in the UK (outside Northern Ireland, the Channel Islands and the Isle of Man), and borrowing for a business purpose. Virgin Money also wants to see at least 12 months of active trading.

On top of that, Virgin Money's business loans page says you'll need the following:

• Consent for personal credit searches on everyone connected to the business.
• Financial accounts, cash flow statements or projections, so it can do a full credit assessment.
• Possibly a personal statement of your assets and liabilities.

The £30,000 minimum is the other hurdle. If your company needs less, a Virgin Money term loan isn't an option.

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What does a Virgin Money business loan cost?

Virgin Money doesn't publish specific business loan rates. It prices each loan on your company's circumstances, and arrangement and other fees may apply.

However, for the Base Rate Loan, there is no fee to repay early, though Virgin Money may set a minimum overpayment. With a Fixed Rate Loan, you might have to pay an early repayment charge if you repay during the fixed period.

SONIA Loans are for larger businesses (with a turnover of over £6.5m) and work in a different way. Its interest rate changes on a daily basis based on the average return paid on wholesale deposits, and therefore reflects the average cost that financial institutions pay to borrow from each other.

Without a published rate on its main business loans, the only way to compare is to get a quote. For a Flexi-Loan, our business loan calculator shows likely repayments before you apply.

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Does Virgin Money need a personal guarantee?

Virgin Money states that it may need a personal guarantee from you or someone else, or security from your business or a guarantor, and that it may not be able to lend without it.

Its own wording is direct: "If your business breaks its borrowing agreement, your assets will be at risk. They may be sold to repay the business or guarantor's debt. This includes property." Virgin Money also advises your business and any guarantor to get legal advice first.

A Flexi-Loan also requires a personal guarantee. Every new Flexi-Loan needs one from at least one director, though not every director has to sign. We don't take property as security when the loan starts.

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How do you apply, and how long does it take?

You start with Virgin Money's online business lending enquiry, or by speaking to your Relationship Manager if you have one. Virgin Money says it responds to enquiries within seven days. The full decision depends on your application.

The enquiry form has four steps: about you, your requirements, your business, then review. Virgin Money shares your details with credit reference agencies to assess the application. Have these ready:

• What you want to borrow and why.
• Your last 12 months of trading activity.
• Financial accounts and cash flow statements or projections.
• Details of anyone who might give a guarantee or security.

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Does Virgin Money offer the Growth Guarantee Scheme?

Yes. Virgin Money offers Growth Guarantee Scheme term loans from £30,000 to £2m per business group, for up to six years. The government guarantee protects Virgin Money, not you: your company stays 100% liable for the debt.

Here are the main things you need to know:

• The government guarantees 70% of the outstanding balance to Virgin Money, after its normal recovery process.
• Your business needs turnover of up to £45m and a viable business proposition.
• Virgin Money may still ask for a personal guarantee, but you can't use your main home as security.
• Rates and fees vary by proposal. If Virgin Money can offer a commercial loan on better terms, it says it will.

Pay As You Grow, which lets you take a repayment holiday or extend your term, is only for Bounce Back Loan customers. It isn't part of the Growth Guarantee Scheme.

The scheme's terms at Virgin Money, from its Growth Guarantee Scheme page were checked on 12 October 2026.

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Can you get a Virgin StartUp loan for your company?

Not in the usual sense. Virgin StartUp is a partner of the British Business Bank's Start Up Loans scheme, and its loans of £500 to £25,000 per co-founder are personal loans to the founder for business use, not loans to the company.

According to Virgin StartUp (checked on 12 October 2026), the rate is fixed at 7.5% a year over one to five years, there are no early repayment fees and the business must have been trading for less than 60 months. The British Business Bank runs the application and a personal credit check. Because the founder borrows personally, it's a different decision from a company loan. If you want your limited company to borrow in its own name, see our guide to start-up business loans.

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Other business finance from Virgin Money

Besides loans, Virgin Money also offers business overdrafts, asset finance, a business credit card and, for existing customers, invoice finance.

• Overdrafts – for short cash gaps. You pay interest only on what you use. Check out Virgin Money's business overdraft terms and rates.
• Asset finance – hire purchase or a finance lease, for vehicles, machinery and other equipment. Read Virgin Money's asset finance page for the assets it covers.
• Invoice finance – Virgin Money's finance page offers it to existing customers, who sign in to draw funds against sales invoices.
• Business credit card – listed on the same finance page.

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When might Virgin Money loans be a good fit?

Virgin Money business loans can be the better fit if your company is established, needs £30,000 or more, wants a long term or a fixed rate, and can wait for a slower bank application and approval process. If you need a smaller sum, a quick decision or flexible drawdown, a Flexi-Loan may suit you better.

Virgin Money loans are probably the better choice if:

• You need more than £1m, or a term longer than five years
• You want a fixed rate for up to five years
• You're buying property or large assets and can offer security
• You already bank with Virgin Money and have a Relationship Manager
• You want a government-backed loan through the Growth Guarantee Scheme

A Flexi-Loan may be a more suitable option if:

• You need less than £30,000, or up to £1m with a decision within 24 hours
• Your finance requirements come and go, like a payroll gap or a stock order, and you'd rather pay interest only on what you draw
• You want the option to repay early with no fees

Victoria Simpson, founder of VCare Group, uses a Flexi-Loan to cover payroll while local authorities pay her invoices. "It might be just a two or three day gap. But when you've got payroll running at that level, two or three days matters."

Bank appetite matters too. In iwoca's SME Expert Index for Q2 2026, 75% of finance brokers agreed that high street banks are reducing their appetite for funding small businesses. That's brokers' view of the market, not a verdict on Virgin Money, so it's worth asking Virgin Money directly what it can offer.

Every Flexi-Loan is a commitment to repay, with a personal guarantee from at least one director. Borrow only what your company can comfortably repay.

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Frequently asked questions

Can I repay a Virgin Money business loan early?

You can repay a Base Rate Loan early without fees. A Fixed Rate Loan may carry an early repayment charge, so check the terms before you sign any agreement.

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What if Virgin Money turns my company down?

Ask why you were turned down, then use Virgin Money's lending appeals route if you think the decision was wrong. You can also compare other lenders, because a decline from one lender doesn't decide the next.

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How quickly can I get a decision from iwoca?

A decision is made within 24 hours, but it might be longer depending on the complexity of the request.