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12 March 2020In this article, we provide you with the facts you need to decide if HSBC could be the right way to fund your business.
12 March 2020HSBC was opened in 1865 and has grown to become one of the largest banks in the world, serving millions of customers globally every year. The bank helps many different people, from individual savers and SMEs, to some of the world’s biggest companies.
If you’re a small business owner, or you have your own start up, HSBC can offer you a commercial mortgage, commercial lending and business overdraft. Here’s everything you need to know about the bank’s small business loans.
Small business loans | Flexible business loan | |
---|---|---|
Loan amount | £1,000 to £25,000 | £25,000+ |
Duration | 12 months to 10 years | 12 months to 20 years |
Setup fee? | Yes | Yes |
Interest rate | Fixed but based on your circumstances | Fixed or variable |
Secured or unsecured | Both | Both |
Every care has been taken to ensure this information is accurate. All information was correct as of 11th March 2020
Wannt to compare more business loan products? We've got guides on Royal Bank of Scotland, Esme, Santander and more.
To be eligible for an HSBC business loan you must be over 18 years old, a permanent resident, and have a good credit rating. You’ll also need to be able to prove that you have a consistent income that supports your existing debts and loan amounts.
You can apply for an HSBC small business loan in a number of ways; in branch, online, or by phone. If you want to apply for a larger flexible business loan, you can do it by phone or in branch. You will need a driver’s license, passport or other government-issued ID as well as recent bank statements and business tax forms. You could need extra documentation, depending on your funding option.
Once you have submitted an application, HSBC will perform a credit check to assess your credit score. The bank says it does this to “fairly and openly” assess the risks involved in lending to your business. If your application is declined on this basis, you can contact the bank’s business lending appeals process to have the decision reviewed.
If you are already an HSBC account holder then you might get approved for a loan immediately. Other customers should be contacted with a credit decision within five working days, but you could be contacted sooner.
Not necessarily; HSBC business loans can be secured or unsecured.
Yes, you can. But it might cost you; if a small business loan is repaid early the bank could still charge you interest for an additional calendar month and 28 days.
Yes, you can and there are no charges for overpayments with a small business loan. Once you’ve taken out an HSBC small business loan you can repay it monthly or quarterly over a term of one to ten years. You are given a three-month repayment holiday at the beginning of the term, but interest will still be charged during this period, so it will cost you.
HSBC are an accredited CBILS lender, offering business loans up to £5m to SMEs hit by the effects of coronavirus. We’re also an accredited lender – visit our CBILS page to see if you could apply, or view the full list of accredited CBILS lenders.
If coronavirus is making running a business difficult for you, and you can’t access a loan through HSBC, don’t give up – there are alternatives.
We're an accredited lender for the Coronavirus Business Interruption Loan Scheme (CBILS), and are excited to provide small businesses with the finance they need throughout this pandemic. With an iwoca CBILS loan, you could borrow between £50,001 and £350,000, and you won't have to worry about making any repayments for the first 12 months. Learn more about our CBILS loans.
When applying for a business loan, there's a lot to think about and it can feel overwhelming. You need to consider your personal and business credit history, your income, and the collateral you would be happy to secure as assets. But there are lots of options available to you.
If you'd like to look at other financial support options, use our coronavirus support tool.
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Abby Young-Powell is an award winning writer, reporter and editor. Having worked for The Guardian for over six years, she began her freelance career writing on subjects such as tech, women’s rights, education and social justice. She has also written The Telegraph, Huffington Post, The London Evening Standard and The Independent.
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