HSBC Business Loans Review
Looking for an HSBC business loan or a small business loan? Explore our comprehensive review including HSBC's loan decision process within 24 hours.
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Loved by over 150,000+ small businesses since 2012
HSBC 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.
HSBC business loans at a glance
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.
How does an iwoca business loan work
Apply in minutes
It takes five minutes from start to finish. We're designed with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We'll approve you based on your business performance. You then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy. As your business grows your credit limit will too.
What is an HSBC business loan (UK)?
HSBC offers a range of business loans aimed at sole traders, limited companies and partnerships across the UK. These can be useful if you need a modest cash injection or a larger investment, they offer three main loan types:
- Small Business Loan: Fixed-rate borrowing from £1,000 to £25,000, repayable over 1 to 10 years. There’s no arrangement fee, and you can defer your first payment by 3 or 6 months.
- Flexible Business Loan: For funding above £25,001, with flexible terms of 1 to 20 years. You can choose between fixed or variable interest, and repayment can be monthly or quarterly.
- Kinetic Small Business Loan: A fully app-based loan through their Kintetic platform for sole traders and sole director companies, offering £1,000 to £10,000 over up to 10 years, with fixed interest and fast decisions.
All HSBC loans are subject to credit checks and affordability assessments, but you don’t need to hold a business current account unless security (e.g. a debenture) is required. Capital repayment holidays are available, though these increase the total interest paid.
Comparing HSBC business loan rates: fixed vs. variable interest
HSBC gives you the option to choose between fixed and variable interest rates, depending on the loan type and how much you borrow.
- Fixed rate loans (available on Small Business and Kinetic loans, and also offered for Flexible loans) guarantee your repayments stay the same throughout the term. These are ideal for budgeting with certainty, especially during periods of rising interest rates.
- Variable rate loans (only available with Flexible Business Loans) track rates like the Bank of England base rate. You might benefit from lower costs if rates fall but you also carry the risk of your repayments increasing if rates go up.
Note: while overpayments are allowed on most loans without fees, early full repayment can trigger interest or break charges, especially during a fixed-rate period.
Exploring HSBC Kinetic, Start-Up, and Bounce Back Loans
For newer businesses or those wanting a digital-first approach, HSBC offers a few more tailored options:
- HSBC Kinetic Small Business Loan – Designed for sole traders and single-director limited companies with turnover up to £6.5m. You can apply in-app for £1,000 to £10,000, with decisions often made same day. Fixed interest and terms up to 10 years make it straightforward and predictable, especially for smaller funding needs.
- Start-Up Loans – While HSBC promotes support for early-stage businesses, it doesn’t currently offer a branded Start-Up Loan product directly. Instead, you may be directed toward government schemes or third-party partnerships.
- Bounce Back Loans – These were part of the COVID-19 recovery response and are no longer open to new applicants. Existing customers may still be repaying under the Pay As You Grow scheme, which offers interest-only periods or term extensions.
For simple, fast funding with full control via mobile, Kinetic is the most modern HSBC loan option—though the cap at £10,000 may limit its usefulness for ambitious growth plans.
Secured vs. unsecured: your options with HSBC commercial business loans
HSBC offers both secured and unsecured loans, depending on your borrowing amount, business risk profile and credit history.
- Unsecured loans include the Small Business Loan and Kinetic Small Business Loan. These don’t require assets as collateral, though you’ll still undergo a full credit check. Security might still be requested in some cases depending on your credit profile.
- Secured loans are typically associated with the Flexible Business Loan, especially when borrowing larger amounts. You might need to provide security in the form of a debenture or fixed charge over your assets. If you default, HSBC may take possession of the secured asset to cover the loan.
Crucially, secured loans offer access to higher borrowing limits and longer terms (up to 20 years), but at the cost of tying your business’s assets to the agreement. And unlike iwoca, HSBC charges prepayment fees on secured loans repaid early, adding to the overall cost.
Fund your future with a business loan
No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.
Easy application
We’ve designed our application process to be as slick as possible: link your bank account and get going in minutes.
No hanging around
Once you’re approved, we’ll ping the money straight to your account. And if you need more later, you can apply for a top-up.
HSBC Business Loan FAQs
Find out more about HSBC business loans and how to apply below.
Am I eligible for an HSBC business loan?
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.
How do I apply for a business loan from HSBC and what documents are needed?
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.
Will HSBC perform a credit check?
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.
How long does it take to be approved?
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.
Will I need to provide security?
Not necessarily; HSBC business loans can be secured or unsecured.
Can I pay off an HSBC loan early and can I make overpayments on an HSBC loan?
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.
Here are other financing options that could suit your needs
The iwoca story
Over the past eleven years iwoca has grown from a small start-up to one of the fastest-growing business lenders in Europe. Now we're a team of around 400 in London and Frankfurt working towards the goal of funding one million small businesses.
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Questions? We're here to help
Call us at 020 3778 0274 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
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