Variable Rate Loan

Meet your business goals

Our Variable Rate Loan can help you achieve your business goals, whether you’re buying a new van, completing an office refurbishment or growing your business.

£25,020 to £10 million

funding limits

Competitive interest rate

discussed upon application

1 to 20

year terms available

Bank of England Base Rate

5.25%, plus our agreed interest margin

Why apply for a Variable Rate Loan?

  • Finance your business purchases or investments
  • Flexible repayment period between 1 and 20 years to give you more control of your finances, with a potential 25-year repayment period for residential investment portfolios
  • Interest-only options available, details available on request

Find out how to apply for a Variable Rate Loan.

Check eligibility for you and key individuals

  • 18 or over
  • A UK resident with a business or charity address in the UK
  • Authorised to borrow on behalf of the business or charity
  • A Co-operative Bank business current account holder

Loan repayments must be made from your Co-operative Bank business current account.

If you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful.

The Variable Rate Loan is available for business use only.

How much can you apply for?

From £25,020

All businesses can apply for a loan from a minimum of £25,020.

Over £250,000

Please contact one of our Relationship Managers. The maximum funding limit is £10m.

Key information

Asset purchases must be in the name of the borrower or business (not the director/shareholder).

Funding is not available to pension funds or businesses domiciled outside of the UK.

Interest, fees and loan to value

Interest

Charged monthly

The interest rate is variable and linked to the Bank of England Base Rate, plus the appropriate interest margin, which will be determined by the financial status of your business. This means the interest rate that you pay will change as the base rate changes.

For sole traders and partnerships, your personal financial circumstances will also be taken into account.


Arrangement fees

Discussed upon application.


Security fees

Discussed upon application

Lending is typically offered on a secured basis. Please note that there will be additional fees when security is required. Fees will be discussed throughout the application process and will depend on your individual circumstances.

Security fees are the costs you’ll need to cover so that the Bank can secure the lending. For example, the cost of registering a Legal Charge over a business property.

If we are able to consider lending on an unsecured basis we will discuss this with you during the application process.


Max. loan to value

We can offer 70% of the market value in funding depending on the sector. For vacant possession properties, we can offer a maximum 80% of the value. Loan to value (LTV) is the ratio of bank funding to the value of the asset over which the Bank will be granted security.


“The Co-operative Bank really believed in our story, helping us secure funding for our ambitious expansion project quickly and efficiently.”

Ashley Lidgard, Managing Director at the Oak Ridge Hotel Group

Read more about the Oak Ridge Hotel Group’s expansion project

Oak Ridge Hotel Group

How to apply

Please note: Fixed rate loans are also available for lending of £250,000 or more.

All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on your business and key individuals (including directors and shareholders).

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your loan or other debts secured on the property.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

For loan applications of £250,000 or more

If you would like to apply for a loan of £250,000 or more, up to a maximum of £10m, please get in touch with one of our Relationship Managers. They will discuss your lending requirements with you and tell you what information you’ll need to send us.

For loan applications under £250,000

To apply for the Variable Rate Loan, you’ll need:

  • your Co-operative Bank business current account details, including account name, account number and sort code (if you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful)
  • information on your tax status
  • details of existing business borrowing
  • personal details and details of assets, liabilities, income and expenditure for all individuals registered and/or with authority to transact on your existing Co-operative Bank business current account
  • your full annual accounts from the past 3 years
  • bank statements from the last 6 months
  • 12-month cash flow forecast (if available)
  • aged receivables list/debtor book (if available).

Use the information gathered in Step 1 to complete the relevant forms (the form appropriate for your business type, plus the ‘Assets & liabilities’ form) and send them to us at the email or postal addresses given below:

Download Loan application for Sole traders & Partnerships PDF

Download Loan application for all other profit organisations PDF

Download Loan application for community PDF

Download Assets & liabilities PDF

Apply by email

SMELendingRequests@co-operativebank.co.uk

Apply by post

Lending Services

The Co-operative Bank

P.O. Box 200

Skelmersdale

WN8 6YL

Application timeline

for applications under £250,000

  • 20 to 60 minutes

    Send us your completed forms

    This usually takes about 20 to 60 minutes. You may find it helpful to gather the information listed under ‘What you’ll need to apply’ before you start filling out the form.

  • Within 2 business days

    We’ll get in touch with you

    We aim to get in touch with you within 2 business days of you sending us your completed forms. We might ask you for some additional information at this stage.

  • Within 10 business days

    You’ll receive a decision from us

    We aim to give you a decision within 10 business days of your full application being received. Occasionally, we may require additional information depending on your circumstances.

Application timeline

for applications over £250,000

If you do not get through to a Relationship Manager straight away, they will contact you within 2 business days of your initial phone call or email to talk through your application with you and discuss next steps.

Not found what you were looking for?

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Fixed Rate Loan

Be reassured by having a fixed rate of interest on your loan

  • Apply from £250,000 to £10m

  • Your regular repayment amount remains constant for the term of the loan

  • Payment options and term discussed at application

Renewable energy funding scheme

Improve your business’ green credentials

  • Boost your business’ energy efficiency

  • Get funding for up to 100% of eligible project costs

  • Extensive list of eligible products and technologies

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Commercial Mortgage

Get support if you’re planning to grow your business or purchase your first commercial premises

  • Borrow up to £10m

  • Finance residential investment portfolios or commercial properties

  • Repayment options & terms discussed on application