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Lloyds Bank, one of the UK’s leading retail and commercial banks offers a wide range of financial products and services to match the needs of small, medium, and large-scale businesses.
The bank which was established in 1765 is currently the largest retail bank in Britain with branches and ATMs spread across England and Wales.
What Are The Financial Products and Services Offered By Lloyds Bank?
Regardless of industry, size, or scale of your business, Lloyd’s Bank has a wide range of financial products and services developed to suit your business needs.
Current Account
Lloyds Bank offers a wide range of financial products for new or established businesses with a turnover of under £3m, £3m-25m, and over £25m. Bank accounts can be accessed 24/7 online or through the bank’s business mobile banking app. There is a monthly fee of £6.50 that covers cash withdrawal, check payment, and other services.
Savings Account
Lloyds Bank offers three types of business savings account:
Business Instant Access
Customers can access their savings account anytime because there is no fixed holding period. The minimum required deposit is £1. The Interest rate is calculated daily and paid monthly.
Notice Accounts
You can only withdraw funds or close the account after you notify the bank following the notice period – 35 days or 95 days before withdrawal. The minimum required deposit is £10,000 up to £5,000,000. The interest rate is variable and calculated daily.
Fixed-Term Deposit
This type of savings account is locked away for a fixed holding period – from overnight up to 3 years. The account holder cannot withdraw from the account until the maturity date. The required minimum deposit is £10,000 while the maximum deposit is £5,000,000. The interest rate is fixed until the maturity date.
Overdrafts
Lloyds Bank offers business owners a flexible borrowing option through unsecured overdrafts starting at £500 and secured overdrafts starting at £25,001.
For a Business with a £0-3m turnover, a 10.85% interest rate is charged annually on an overdraft worth £500 to £25,000. The interest will only be applied to the amount used. The annual fee varies depending on the amount borrowed.
For a business with £3m – £25m turnover, a 7.66% interest is charged annually on unsecured overdrafts between £500 and £25,000. For overdrafts worth more than £25,000, rates will be determined on application.
Business Loans
Lloyd Bank offers different types of loans to help business owners manage their cash flow better, fund expansion projects, and meet other financing needs to ensure business stability.
Base Rate Loan
You can borrow £1000 with a variable interest rate and 5.1% APR. The loan term is from 1 to 25 years.
Fixed-Rate Loan
The loanable amount is £1,000-£50,000 with a fixed interest rate and 5.1% APR. The loan term is 1 to 10 years.
Commercial Fixed Rate Loan
The loanable amount is over £50,000 with a fixed interest rate. The loan term is up to 25 years. Capped Base Rate Loan. You can borrow £50,001-£1,000,000 with a variable interest rate. The monthly amortisation is capped at a maximum amount for 5 years. The loan term is 5 to 25 years.
Other Financing Options
Business Cards
Issuing cards with preset credit limits is a good way to manage your business expenses. Lloyds Bank offers clients two options:
Business Credit Card
Get instant funding with a Lloyds business credit card with up to a £10,000 credit limit. You can issue up to 20 cardholders with a fixed credit limit. The flexible repayment term will not put a dent in your cash flow.
Business Charge Card
You can set a limit per card issued (up to 20 cardholders) to manage your cash flow better. A charge card will not incur interest if the monthly balance gets paid in full.
Insurance
Give your business a safety net for untoward circumstances that can derail your plans. Lloyds Bank works with Arthur J. Gallagher Insurance Brokers Limited, one of the UK’s leading insurance brokers, to provide clients the following insurance products:
- Public Liability Insurance
- Landlord Insurance
- Professional Indemnity Insurance
- Shop Insurance
- Office Insurance
- Cyber Insurance
Reviews And Ratings On Lloyds Bank
An independent survey involving 1,200 customers of 14 top business account providers was launched in compliance with a regulatory requirement. The customers were asked if they would recommend their bank to other business owners (small and medium-sized enterprises – SMEs)
In the independent survey, Lloyds Bank ranked 5th in Overall service quality, 3rd in Online and mobile banking services, 7th in SME overdraft and loan services, 8th in Relationship/account management, and 3rd in Service in branches and business centers.
On Trustpilot, Smart Money People, and Reviews.co.uk, customers are divided. Some are satisfied with the bank’s service, while others complain about slow applications, unresponsive customer service, and poor onsite service.
On Which? Lloyds Bank got 4/5 for communication and 3/5 for transparency of fees, handling of customer complaints, and overall customer service. In 2015, Lloyds was an awardee of Moneyfacts Business Startup Bank of the Year.
- Rating Summary
- Trustpilot – 1.8/5 (565 reviews)
- Reviews.co.uk – 2.83/5 (502 reviews)
- Smart Money People – 2.57/5 (81 reviews)
- Which? – 70% Which? Customer Score