Triodos Bank UK – Business & SME Lending is an ethical bank operating since 1995, focusing on lending to organisations with clear social, environmental, or cultural benefits. It offers loans primarily to charities, social enterprises, community energy projects, and mission-led SMEs. Triodos stands out for its relationship-based underwriting, avoiding automated scoring systems, and providing finance with purpose. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. For general business borrowing options, you may refer to business loans and for more information on eligibility, see how to qualify for a business loan in the UK.
Key Features of Triodos Bank UK
Triodos offers specialised lending features suited to ethical organisations, combining flexible loan structures with sector-specific expertise.
- Mission-driven lender focusing on social, environmental, and cultural impact, with dedicated lender profiles.
- Large loan sizes up to £20 million with long terms to suit capital-intensive projects, aligned with term loan options.
- Choice of fixed or variable interest rates, including fixed rate windows up to 10 years; see an explanation of interest rates.
Funding Eligibility
You may qualify for Triodos finance if your organisation is UK-registered and delivers measurable positive social or environmental impact. Typically, two years’ trading history or equivalent project experience is needed. Facilities start at £25,000, excluding very small borrowing needs. Detailed information on general eligibility requirements and cash flow assessment can be found in our guides on business loan eligibility and personal guarantees where applicable.
Loan Options
Triodos offers a range of loan products tailored to impact organisations. Below are notable examples with key terms and indicative rates.
- Business Term Loan: Amounts from £25,000 to £20,000,000, with terms from 1 to 25 years. Interest rates range from Bank of England Base Rate plus 2.5% to 6.0% variable, or 5.0% to 8.5% fixed. Arrangement fees are around 1%, with borrower responsible for legal and valuation costs. More details on term loans.
- Renewable Energy Project Finance Loan: From £1,000,000 to £20,000,000, terms between 5 and 20 years, interest at Base Rate plus 2.0% to 4.5%. Suitable for projects with contracted revenues and long-term power purchase agreements. For insight on secured lending and project finance, see collateral and structured finance guidance.
- Social Housing & Community Facilities Loan: Ranging from £250,000 to £20,000,000, with terms up to 30 years, and rates approximately Base Rate plus 2.5% to 5.0%. Suits housing associations and community providers, typically requiring property security. Related options include working capital loans for operational liquidity management.
- Charity & Social Enterprise Overdraft / Working Capital Facility: Amounts between £25,000 and £500,000, revolving 12-month facility. Interest varies from Base Rate plus 3.5% to 7.0%, charged only on used balance. Requires security such as debentures or property charges. For alternative short-term liquidity options, see unsecured business loans.
How to Apply
Applying to Triodos involves a manual process reflecting their relationship-led underwriting. Expect a longer timeline than with automated lenders. Applications require detailed documentation and interaction with dedicated relationship managers.
- Submit an enquiry form or contact via phone; details available on the bank’s application form page.
- Provide audited accounts, business plans, financial projections, and impact statements as part of document submission; see our application document guide.
- Allow 2 to 4 weeks for indicative approval after full information is received, with final credit and legal completion taking 4 to 12 weeks depending on complexity; understand typical loan approval timelines.
- Funds are released promptly once legal security and conditions precedent are satisfied.
Funding Agent’s view
Triodos Bank UK is suitable for organisations committed to clear positive impact, with established governance and project experience. Its relationship-based approach and ethical criteria limit availability for mainstream businesses or those needing rapid unsecured funding. For additional funding information and loan comparisons, consider using our funding tools and eligibility checker to identify suitable options.
