Why are we raising our interest rates for our small business loans?

As a business, we are committed to supporting small and medium-sized enterprises (SMEs) with accessible, responsible, and competitive financial solutions. However, from 1 April 2025, our interest rate for Small Business Loans. will increase from 12.5% to 13%.

We understand that any change in borrowing costs can raise questions, so we want to be transparent about why we are making this adjustment. More importantly, we want to reassure you that our commitment to delivering fair, flexible, and tailored financial support remains as strong as ever.

Several key factors have influenced our decision to adjust interest rates, all of which are designed to ensure we continue providing high-quality financial solutions while maintaining our long-term sustainability as a lender.

1. Economic conditions and inflation
   The financial landscape is constantly evolving, with inflation and broader economic conditions impacting the cost of lending. Adjusting our rates allows us to align with market shifts while ensuring we can continue offering reliable financial support.
2. Sustaining responsible lending
   Our focus has always been on responsible lending. By carefully adjusting our interest rates, we can maintain a sustainable lending model that ensures we remain a long-term partner for SMEs looking to grow.
3. Keeping our service competitive
   Despite this adjustment, our fees and interest rates remain highly competitive compared to other alternative finance providers and online lenders. We continue to offer flexible funding solutions designed around the needs of small businesses.

We know that predictability and transparency matter when it comes to financing your business. That’s why, even with this rate increase, our commitment to providing tailored financial support remains unchanged.

• Personalised funding solutions – We work closely with businesses to structure loan terms that suit their cash flow and growth plans.
• Ongoing expert support – Our team remains available to discuss funding options and ensure you get the most out of your loan.
• Competitive rates in the market – Even with the increase, we continue to offer rates that are favourable compared to many alternative finance providers.

We understand the unique economic conditions affecting different regions of the UK. That’s why businesses based in the North East will not be affected by this interest rate increase. Small Business Loans in this region will continue to be available at the existing 12.5% rate.

While the interest rate change reflects broader market trends, what hasn’t changed is our commitment to helping businesses thrive. Whether you’re looking to invest in new equipment, expand your team, or manage cash flow, we’re here to support your business ambitions.

If you’re considering a small business loan, there’s still time to secure funding before the new interest rate comes into effect. Submit your application before 31 March 2025 to take advantage of the current 12.5% fee.

Important update: Our completion fees will also rise on 1 April 2025 alongside the interest rate increase. If you're considering a small business loan, applying before 31 March 2025 allows you to secure funding at the current rates.

Got questions? Our team is happy to discuss how this change affects you and help you find the best financing option. Contact us today.