Highlights
Sterling Overnight Index Average (SONIA) loans are designed for those who are comfortable with variable rates of interest
- For borrowing over £2.5m
- For businesses with a turnover of over £6.5m
- Flexible repayment options
- You can choose to pay interest monthly or quarterly
Frequently asked questions
SONIA is a rate which is published and changes on a daily basis based on the average return paid on wholesale deposits, and therefore reflects the average cost that financial institutions pay to borrow from each other. Those daily rates are compounded during the course of an interest period. The actual interest rate using SONIA compounded and the related interest payment amount will therefore only be known at the end of the interest period. What this means is:
- The period over which the daily SONIA rate is compound "lags" the interest period by 5 business days before the start and end of the interest period;
- The "lag" results in interest being calculated from the start of the lag period to the end of the lag period;
- This approach allows the SONIA compounded rate and related interest payment to be known 5 business days before the interest payment date. This will provide borrowers with a working week to meet the interest payment.
To apply for a SONIA loan you must:
- Be based and operating in the UK (excluding Channel Islands, Isle of Man & Northern Ireland)
- Have a turnover greater than £6.5million
- Be considering a loan or revolving credit facility of £2.5million and above
- Be over 18 years old
- Be borrowing for a business purpose
What you need to know
Interest Rates
Every business is unique. We'll always offer you our most competitive rate based on your circumstances.
Eligibility
Terms and conditions apply. All loans are subject to status and eligibility. Applicants must be aged 18 or over. You must be based and operate in the UK (excluding Channel Islands, Isle of Man & Northern Ireland) and have a business purpose for your loan.
Personal guarantees, security and fees
To lend your business money, we may need a personal guarantee from you or someone else. Or security from your business or a guarantor. We may not be able to lend to your business without it.
Your business and guarantor should get legal advice before providing a guarantee or security. If your business breaks its borrowing agreement, your assets will be at risk. They may be sold to repay the business or guarantor’s debt. This includes property.
Security and guarantees reduce our lending risk. They remain in place until your business repays all its debt to us.
You can find out more about personal guarantees on the UK Finance website.
Arrangement and other fees may apply.
Get in touch
Find out more about how our loans may be able to help you.
Just so you know...
- You may need to obtain consent for personal searches for each party associated with the business.
- To allow a full credit assessment, you may need to provide financial accounts, cashflow statements and/or projections as part of your application.
- We may ask you for a personal statement of assets and liabilities.
- We may need a personal guarantee from you or someone else. Or security from your business or a guarantor.
- Enquires will be responded to within 7 days.