Bank of Scotland: products, terms and eligibility

Bank of Scotland is a UK provider of commercial mortgages and bank lending. The legal entity named on its site is Bank of Scotland plc, company number SC327000. It is based in Edinburgh. It gives its founding year as 1695. It is part of Lloyds Banking Group.

It says it was founded in 1695 and is Scotland’s first and oldest bank. It says it is part of Lloyds Banking Group, alongside Lloyds and Halifax. Its footer names Bank of Scotland plc, registered in Scotland (No. SC327000) with its registered office at The Mound, Edinburgh.

In its own words on scale:

• Says it has served customers for over 320 years (figure on its site in October 2026).

Everything on this page comes from what Bank of Scotland publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Bank of Scotland publishes 5 products for UK businesses. The table above gives the amounts and terms as it states them.

• Small Business Loan: Usually monthly; fixed rate, or variable rate for amounts over £25,000.
• Large Business Loan (including Commercial Mortgages): Usually monthly; fixed or variable rate.
• Business Overdraft: Revolving; interest only on the amount used.
• Invoice Finance (Invoice Discounting): Revolving facility.
• Asset Finance (Hire Purchase, Finance Lease): Monthly payments.

Small Business Loan

£1,000 to £100,000 with a personalised limit, repaid over a term starting from one year. Fixed rate loans are available, and amounts over £25,000 can be taken on a variable rate that usually tracks Bank of England Bank Rate. Some businesses can see a personalised limit online of up to £250,000.

Large Business Loan

For borrowing over £100,000, with repayment terms of 1 to 25 years and sector specialist support. Uses include buying or refinancing property through a Commercial Mortgage, remortgaging commercial property, expansion and acquisitions; it says loans can also be used to buy rental properties.

Business Overdraft

An arranged overdraft from £500 for Business Current Account holders, with interest charged only on the amount used and monthly or annual fees depending on the limit. Quotes are available online up to £25,000.

Invoice Finance

A confidential invoice discounting service advancing up to 90% of invoice value, for UK and overseas debt in a range of currencies; the business manages its own sales ledger. You can apply without banking with Bank of Scotland. Debtor Protection is available as an add-on.

Asset Finance

Hire purchase and finance leases over 12 to 60 months, contract hire for new vehicles (24 to 60 months), and Sale & Hire Purchase Back to release cash from assets bought in the last 6 months. Green Asset Finance and Capital Import Finance (assets of £100,000 or more from overseas) are also listed.

Bank of Scotland says its finance is used for:

• Business expansion and new locations
• Buying or refinancing property
• Managing cash flow and unexpected costs
• Buying vehicles, equipment and machinery
• Releasing cash tied up in invoices
• Green and sustainability projects

Sectors and business types it says it funds:

• Construction
• Haulage
• Manufacturing
• Recruitment
• Real estate and housing

Bank of Scotland publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Be at least 18 years old.
• Need the money for business, not personal, reasons.
• Be a sole trader, partner or director authorised to borrow for the business.
• Business Overdraft: be an existing Business Current Account holder.
• Invoice Finance: sell business to business on credit terms, turnover of at least £100,000 a year and use accounting software.
• Asset Finance: turnover over £100,000 a year and trading for at least 13 months.

Bank of Scotland describes its process like this:

1. Apply online or by phone, saying how much you want to borrow, over how long and what for.
2. Bank of Scotland carries out its credit assessment.
3. It tells you if you’re approved; if not, it can discuss other options or its appeals process.
4. For loans over £100,000, call its lending team or enquire through online banking.

Information it says it asks for:

• Proof of any other existing finance
• Details of assets you could use as security, including the estimated value of your business
• A profile of your business, including the owners' and management team’s experience
• Evidence of money you or the management team have invested
• Historic financial accounts and management accounts
• A business plan and cash flow forecast covering the borrowing term

Every application is subject to status and the lender’s own criteria at the time.

A commercial mortgage is a long-term loan secured on business premises or investment property. Lenders look at the property’s value, the deposit, and whether the business’s profits or the rent comfortably cover the repayments.

Banks often lend across several products, from overdrafts to asset finance, and some can offer facilities under government schemes. See government-backed business loans for how those work.

Our guide to commercial mortgages and bank lending explains the costs, who it suits and how to compare offers.

Points Bank of Scotland publishes that are worth knowing:

• Limited companies and LLPs are asked for a guarantee on loans; one may be required on overdrafts.
• Variable rate loans can be repaid early without a fee; fixed rate loans may carry a fee for early repayment.
• Asset Finance facilities are provided by Lloyds Bank plc; invoice finance may be provided by Lloyds Bank Commercial Finance, Lloyds Bank plc or Bank of Scotland plc.
• You don’t need a Bank of Scotland business account for a loan; a fee-free Loan Servicing Account can be opened instead.
• Loans over £100,000 are applied for by phone or through its large lending team.

Security and guarantees

It says security isn’t always required and is sought case by case, reflecting risk and type of facility. A guarantee is needed on loans for limited companies and LLPs. Any property given as security, which may include your home, may be repossessed if repayments are not kept up.

Bank of Scotland’s site states: “Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.”

You can check any firm’s permissions on the FCA’s Financial Services Register, listed in the sources below, before you sign anything.

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of commercial mortgages and bank lending with profiles here include Barclays, Cambridge & Counties Bank and HSBC UK. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.