October 23, 2025
Lender Comparisons

Comparing HSBC vs Lloyds Bank

Compare HSBC and Lloyds Bank Invoice Finance for better rates, flexibility, and customer service to make an informed choice.
James Laden
Co-founder and CEO

This guide is for UK business owners and finance managers comparing two major high-street banks. We compare products, pricing, speed and service across HSBC’s Small Business Loan and Lloyds Bank’s Business Loans. We focus on practical details that affect cash-flow and approval chances. We also explain who each lender suits and how to apply today.

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TL;DR
  • HSBC publishes two representative APRs for its small-loan product and caps that product at £25,000 online. Lloyds publishes a representative APR of 11.2 % for loans from £1,000 to £50,000.
  • For larger, structured borrowing both lenders offer fixed or variable term loans. HSBC’s Flexible Business Loan is available from £25,001 with terms up to 20 years.
  • In terms of speed and application journey, HSBC states funds can arrive the same day for approved customers under certain conditions. Lloyds notes that funds could arrive within 48 hours after approval.
  • Pricing depends on borrowing size and structure: HSBC shows 11.3 % and 8.6 % APR bands for its small-loan product. :contentReference[oaicite:3]{index=3} Lloyds shows 11.2 % APR representative for the online product range.
  • If you favour structured lending with longer terms and relationship support, HSBC may suit. If you prefer a fast digital journey up to £50k with a published benchmark APR, Lloyds may be the better fit.

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Products and Terms at a Glance

HSBC overview: loan sizes, fees, repayment style, terms, eligibility

HSBC offers a Small Business Loan for borrowing between £1,000 and £25,000 with fixed monthly repayments over 12 months to 10 years. It publishes representative APRs of 11.3 % for loans up to £10,000 and 8.6 % for loans over £10,000. There is no arrangement fee shown on the small-loan product page. For larger borrowing, the Commercial Business Loan and the Flexible Business Loan (from £25,001) provide fixed or variable pricing with terms up to 20 years. Security may be required depending on the borrowing and business status.

Pros of HSBC

  • Clear published APR bands for the small-loan product.
  • Option for online application for existing business customers and potential same-day funding for approved loans under certain conditions.
  • Flexible structured borrowing options via the Flexible Business Loan with up to 20-year terms.

Cons of HSBC

  • The small-loan cap of £25,000 may be limiting for growing businesses.
  • Same-day funding is conditional on being an existing customer using the online channel; not guaranteed for all applicants.
  • Larger or structured loans may carry arrangement fees and early-repayment charges.
  • Variable-rate options expose you to base-rate or reference-rate increases, which can raise repayments.

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Lloyds Bank overview: loan sizes, fees, repayment style, terms, eligibility

Lloyds offers a fast online journey for smaller sums. Its online product range covers loans from £1,000 to £50,000 with a fixed-rate representative of 11.2 % APR. Repayment terms when applying online range from 1 to 10 years. The product allows choice of fixed or variable rate and no arrangement or early-repayment fees are published on the small-loan page.

Pros of Lloyds Bank

  • Instant online decision-capable for many loans up to £50,000.
  • Published benchmark APR of 11.2 % simplifies cost-planning for borrowers.
  • Your application can proceed without needing a Lloyds business current account in many cases.
  • The quote tool can provide indicative costings without affecting your credit score.

Cons of Lloyds Bank

  • The published representative APR (11.2 %) is higher than HSBC’s 8.6 % band for loans over £10,000.
  • Variable-rate options carry the risk of rate increases, which may raise repayments.
  • For loans above the listed online product you will move into bespoke pricing which may include fees or charges that are not clearly advertised.

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HSBC vs Lloyds: turn rates, limits and speed into a clear decision

This dashboard converts the published online small-loan details into five quick charts. Read bars as ranges and dots as typical points. Use it to weigh pricing vs access across rate bands, amounts, terms, speed to funds, and arrangement %. Compare like-for-like today, then sense-check affordability and documents before you apply.

HSBC vs Lloyds – SME Lending Dashboard

HSBC vs Lloyds: turn rates, limits and speed into a clear decision

This dashboard converts the published online small-loan details into five quick charts. Use bar graphs for easy comparison of ranges and values across rate bands, amounts, terms, speed to funds and arrangement %. Compare like-for-like today, then sense-check affordability and documents before you apply.

Bars show the published APR bands. HSBC: 8.6%-11.3%. Lloyds: 11.2% (single band). Use these to compare cost ranges across lenders.

The online small-loan range is illustrated: HSBC £1k-£25k; Lloyds £1k-£50k. Use this to decide if your borrowing need fits the online product range.

Terms for the online product: both lenders publish 1-10 years (12-120 months). Longer terms reduce monthly payments but increase total cost.

Speed to fund: Stages shown are Application → Decision and Decision → Funds. HSBC indicates same-day funding is possible for qualifying customers; Lloyds cites ~48 hours for funds after approval. Use this when timing is critical.

Published arrangement fee %: No value is clearly published for the online small-loan products, so this chart shows zero for both lenders (interpreted as “No published %”).

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Costs and Repayments in Practice

Both lenders publish representative APRs for their online small-loan products. Actual rates will depend on your credit profile, security offered and other terms. Larger or bespoke borrowing is priced on a case-by-case basis and may include fees. Variable-rate loans allow repayments to go up or down with market reference rates.

Feature HSBC Lloyds Bank
Online small-loan range £1,000 to £25,000, fixed rate (Small Business Loan) £1,000 to £50,000, fixed or variable rate (online)
Representative APR (small loans) 11.3 % up to £10,000; 8.6 % over £10,000 11.2 % across £1,000 to £50,000
Typical online term range 12 to 120 months 12 to 120 months (online)
Larger structured loans Flexible Business Loan from £25,001, fixed or variable, up to 20 years Commercial/structured term loans above £50,000, fixed or variable, tailored case-by-case
Arrangement fee on small loans No published arrangement fee on the standard small-loan product No arrangement fee or early-repayment fee published on the online small-loan product

Assumptions: The comparison uses lenders’ published representative APRs and ranges for online small-loan products as at time of writing. Your actual rate will vary and offers are subject to change.

Worked example: HSBC Small Business Loan

Assume borrowing £25,000 over 5 years at HSBC’s 8.6 % APR representative. Monthly repayment is about £514.12, total repayable about £30,847, interest about £5,847.

Worked example: Lloyds Bank Business Loan

Assume borrowing £50,000 over 5 years at Lloyds’ 11.2 % APR representative. Monthly repayment is about £1,092.11, total repayable about £65,526.89, interest about £15,526.89. Actual terms will depend on your situation and product selected.

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Speed and Service

HSBC: If you are an existing business customer and the Primary User on Business Internet Banking then you can apply online. HSBC indicates that funds can arrive on the same day the loan is agreed under those conditions. Relationship-managed support is available for larger or more complex borrowing.

Lloyds Bank: You can apply online for loans up to £50,000 and many applicants may receive funds in as little as 48 hours once approved. Non-account holders can apply and Lloyds will (in many cases) open a fee-free loan-servicing account to collect repayments.

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Who Each Lender Suits

Typical scenario for HSBC

You want a fixed-rate loan up to £25,000 and prefer the lower APR tier above £10,000. Or you may require a larger, structured facility with longer terms up to 20 years and the choice of fixed or variable pricing. You favour relationship support and options such as capital repayment holidays.

Typical scenario for Lloyds Bank

You want a fast digital journey up to £50,000 with an online decision and a clear published APR of 11.2%. You want to choose fixed or variable rate in the same process, and you might not have a Lloyds current account but still want to apply with minimal friction. For working-capital flexibility consider combining the loan with revolving credit or an overdraft.

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How to Apply

Application steps and documentation required for each lender

HSBC: Existing business customers who are the Primary User on Business Internet Banking can log on and apply online. Alternatively apply by phone. Have your recent accounts, bank statements, and details of existing finance ready. Security may be requested depending on risk and facility type. For the Flexible Business Loan or larger sums expect a fuller assessment, possible arrangement fees and option of fixed or variable rate. For the Small Business Loan there is no published arrangement fee. If approved online and you meet the qualifying criteria, funds may land the same day (but this is not guaranteed).

Lloyds Bank: You can apply online for loans up to £50,000 and receive a decision in many cases. The terms for the online product are 1 to 10 years. You can choose fixed or variable rate. To test your cost without affecting your credit score use the online quote tool. Prepare your business profile, management background, recent accounts and details of borrowing. You do not need a Lloyds business current account in many cases; a fee-free servicing account may be opened for repayments.

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Final Verdict: Which Lender Fits Your Business Best

Choose HSBC if…

  • You want a fixed-rate small business loan up to £25,000 and prefer the lower APR tier above £10,000.
  • You may need long-term borrowing up to 20 years or the choice of fixed or variable pricing on larger borrowing.
  • You value repayment-holiday options (subject to status) and higher-touch relationship support.

Choose Lloyds Bank if…

  • You want a fast online decision up to £50,000 with terms from 1 to 10 years.
  • You prefer the simplicity of a clear benchmark APR of 11.2% for small-loan sizes.
  • You favour a streamlined digital journey where you can pick fixed or variable rate in one process and you are not tied to having a Lloyds business current account.

If neither lender fits your needs perfectly consider comparing other term loans or business-loan providers via our platform at Funding Agent.

Ready to compare tailored offers across the market? Speak to our team at Funding Agent or complete our short enquiry form and we will review your needs in plain English.

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Sources

Disclaimer: Information is based on lender webpages available at the time of writing. Rates, fees and eligibility are subject to change and individual assessment. This article is an independent comparison. It is not financial advice.

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FAQs

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