TSB offers fixed-rate business loans from £1,000 to £1,000,000 at a representative APR of 9.9%, available on a secured or unsecured basis depending on the amount. However, TSB charges a £250 arrangement fee, making it the only major bank to levy a setup cost. Here is our independent review for 2026.
- Borrow up to £1 million on a fixed rate - the highest fixed-rate loan ceiling among traditional high street banks, available on a secured or unsecured basis
- Fixed 9.9% representative APR - the rate applies to loans from £1,000, though break costs can apply if you repay a fixed-rate loan over £25,000 early
- 10-year maximum term available - longer repayment periods help reduce monthly costs for larger business investments
- Usually requires an existing TSB account - restricts access compared to competitors like Funding Circle who accept new applicants
- Highest fixed-rate ceiling on the high street - £1 million tops NatWest’s £100,000 and HSBC/Barclays’ £25,000 unsecured caps
What Is TSB Business Loans?
TSB offers two business loan products: a Fixed Rate Loan (up to £1,000,000 with terms up to 10 years) and a Base Rate Loan (from £25,001 with variable rate and terms up to 25 years).
TSB positions itself as a challenger bank focused on simplicity. Spun out of Lloyds Banking Group in 2013, TSB was acquired by Spanish bank Sabadell in 2015. Santander completed its acquisition of TSB from Sabadell for £2.65 billion on 30 April 2026, having first agreed the deal in July 2025. TSB continues to operate under its own brand and accept new business loan applications, with Santander confirming no immediate changes while the longer-term brand integration is planned.
The standout figure is the £1,000,000 fixed-rate loan limit – significantly higher than any other high-street bank. NatWest caps unsecured at £100,000, while HSBC and Barclays stop at £25,000. The trade-off is the £250 arrangement fee that competitors do not charge.
TSB Business Loans: Pros and Cons
TSB offers the highest fixed-rate borrowing limit of any UK high-street bank at £1,000,000, but the £250 arrangement fee and requirement for a TSB account reduce its appeal for smaller loans.
What Business Loan Products Does TSB Offer?
TSB has two products: a Fixed Rate Loan for predictable repayments up to £1 million, and a Base Rate Loan linked to the Bank of England rate for flexible longer-term borrowing.
| Product | Amount | Term | Rate | Key Feature |
|---|---|---|---|---|
| Fixed Rate Loan | £1,000 – £1,000,000 | 1–10 years | 9.9% representative APR | Highest fixed-rate limit from any bank |
| Base Rate Loan | From £25,001 (no upper limit) | Up to 25 years | BoE base rate linked | Variable rate, long-term flexibility |
The Fixed Rate Loan is TSB’s core product. The representative APR of 9.9% applies to a worked example of £13,000 over 60 months (annual interest rate 9.06%). Fixed-rate repayments provide certainty for cash flow planning – your monthly amount never changes regardless of Bank of England rate movements.
The Base Rate Loan suits businesses that want longer repayment terms (up to 25 years) and are comfortable with rate fluctuations. With no stated upper limit, this product can accommodate significant borrowing for established businesses. However, rates are linked to the BoE base rate, meaning repayments will rise if the base rate increases.
TSB Business Loan Rates and Fees
TSB charges a representative APR of 9.9% and a £250 arrangement fee on the Fixed Rate Loan. This is the only major UK bank that charges an upfront fee on business loans.
The £250 arrangement fee is payable upfront and applies regardless of loan size. For a £5,000 loan, this adds 5% to the cost; for a £100,000 loan, it is just 0.25%. This means TSB becomes more cost-effective at higher borrowing amounts. For small loans under £10,000, the fee disproportionately increases the total cost compared to fee-free alternatives like HSBC or Barclays.
For a full cost breakdown across lenders, see our business loan costs and rates guide.
TSB vs Alternative Business Lenders
TSB’s £1 million fixed-rate limit is unmatched by other high-street banks, making it the go-to for large fixed-rate borrowing. For smaller loans, fee-free alternatives are cheaper.
| Lender | Representative APR | Max Fixed-Rate | Arrangement Fee |
|---|---|---|---|
| TSB | 9.9% | £1,000,000 | £250 |
| HSBC | 11.3% (8.6% over £10k) | £25,000 | £0 |
| Barclays | 11.2% | £25,000 | £0 |
| NatWest | 15.73% | £100,000 | £0 |
| Funding Circle | From 6.9% | £750,000 | Completion fee |
TSB’s £1 million fixed-rate limit makes it uniquely attractive for businesses borrowing £100,000+ at a fixed rate from a bank. No other high-street lender comes close – NatWest caps at £100,000 unsecured, and the others at £25,000. Funding Circle offers up to £750,000 at potentially lower rates, but as an online lender rather than a bank.
For smaller loans (£25,000 or below), the £250 arrangement fee tips the balance toward fee-free competitors. See our best business loans guide for the full comparison.
Use our free Loan Repayment Calculator to get a personalised cost estimate based on your specific requirements.
Our Verdict on TSB Business Loans
Unmatched £1M fixed-rate limit from a high-street bank, but the £250 arrangement fee and account requirement make it less competitive for smaller loans.
TSB is the best high-street bank option for large fixed-rate business loans up to £1 million, but the £250 arrangement fee makes it less competitive for smaller borrowing.
Important: Santander completed its acquisition of TSB on 30 April 2026 (first announced July 2025), which may affect product availability and branding over the coming years. Santander has previously absorbed Abbey National, Bradford & Bingley, and Alliance & Leicester – all eventually rebranded. If you take out a TSB business loan today, the loan terms are legally binding and will not change, but your account may eventually migrate to Santander’s platform.
TSB occupies a clear niche: businesses needing £100,000+ at a fixed rate from a regulated high-street bank. The £1 million cap is unmatched, the 9.9% APR is competitive at that scale, and the £250 fee becomes negligible on larger amounts.
For loans under £25,000, TSB’s £250 arrangement fee can still outweigh its now-lower headline rate. HSBC (11.3% APR, 8.6% for loans over £10k), Santander (11.2% APR, no arrangement fee), or Barclays (11.2% APR, zero early repayment fees) are worth comparing against TSB’s fee before you borrow.
