You can apply for additional borrowing while your company or LLP is still repaying an existing facility, but it is assessed carefully. Repaying one loan well does not automatically mean a second will be approved.
What we look at
The central question is whether further borrowing is affordable and sensible for the business on top of what it already owes. We look at how the existing facility is being managed and at your recent trading.
- Whether repayments on the existing facility are up to date.
- Your recent business bank activity.
- The purpose of the additional funds.
Why we may say no
Responsible lending sometimes means declining additional borrowing even when an existing facility is in good standing, because taking on more would stretch the business too far. That is a protection, not a punishment. Where additional borrowing is approved, its rate and term are shown in that offer.
Good to know
Each facility is to your company or LLP, with no personal guarantees from directors or members. This is exempt business lending and is not covered by the Financial Ombudsman Service or FSCS. If you are finding the first facility a stretch, talk to us rather than borrowing more to cover it.
Related guidance covers having more than one loan with us, how multiple applications affect each other and how we decide whether to lend.
See also: Can a newly formed company apply?, Can a charity or charitable company apply?, Can a CIC or community interest company apply?.