Our annual interest rates range from 4% to 12% with a current average of 7.3%. They’re fixed for the life of your loan with us.
How we decide which rate to charge
We consider each loan application we receive on an individual basis and take into account the following factors when we decide which interest rate to charge:
- The creditworthiness of your business, which we assess using a Credit Reference Agency
- Available security
- Your business’ recent financial performance
Once we’ve assessed these factors we grade each loan application from band A to F to help us determine the interest rate (F representing the highest risk).
Our latest interest rates
The following table shows the weighted average interest rate we charged on loans between 1 April 2018 and 31 March 2019.
Loans provided per band
The following table provides a percentage breakdown of the total number of loans provided by value per band between 1 April 2018 and 31 March 2019:
| Grade | % Number of deals | % Value provided |
|---|---|---|
| A | 6% | 14% |
| B | 13% | 15% |
| C | 10% | 13% |
| D | 13% | 25% |
| E | 10% | 14% |
| F | 48% | 19% |
| Total | 100% | 100% |