Business Offset Loan

Flexible money-saving offset loan

• Combine your loan with a choice of business current accounts
• Repay your balance early or enjoy lower repayments
• Either way save thousands

Save thousands of pounds

Does your bank offer you inflexible products and services? We look at things differently. That's why we're revolutionising the corporate market with inventive products like Business Offset products.

Our Business Offset loan offers you the chance to clear your balance early or enjoy lower repayments as you go along, with the potential of saving you thousands of pounds in the process.

How it works

Business Offset effectively combines your loan with a business current account. Instead of actually paying interest on your current account we use an equivalent notional amount, equal to Bank of Scotland Base Rate, to reduce the interest payable on your loan.

Effective interest is only earned on current account balances which are less than the equivalent loan balance.

You then have two options:

Either, reduce the term of your loan

One way to benefit is to use the reduction of interest to pay off your borrowing early and make a large saving without any early repayment penalty. And, with Bank of Scotland Base Rate, the benefit of this product could outstrip the benefit of leaving your money with any other high street bank.

Or, get a cashflow boost every month

As an alternative to repaying your loan early, you can choose to enjoy lower monthly repayments as you go along. Instead of reducing the term, the notional interest earned on credit funds held on your current account is used to lower monthly repayments, providing a boost to your cashflow each month. The loan would run for the full term and once again your business could enjoy large savings in loan interest.

For both options the interest rates on our Business Offset loan are negotiable. The miminum loan is £100,000 and there is an arrangement fee of 1% (minimum £1,250).

Smart options for a business current account

Business Offset gives you the choice of two business current accounts, each attracting notional interest equivalent to Bank of Scotland Base Rate.

If you only want to operate your account via Internet and telephone then you'll benefit from our low cost direct current account. You will only ever have to pay 40p for the cheques you write and most other transactions are free. If you have cash to pay in, you can use our low cost Direct Cash postal service, which costs as little as 24p per £100 deposited^#.

Alternatively if you prefer to use local counter services in a branch then our Corporate Current Account offers competitive charges. This account ensures you can use any Bank of Scotland branch and a growing number of Halifax branches which have Business Express units. Use our branch locator to find out where your nearest branch is.

Business Offset interest rates

The interest rate on your loan is negotiable with your Relationship Manager and will depend on the amount borrowed, the term of the loan and the security available.

Moving your banking to us is easy

Don't let the fear of disruption to your bank account stop you enjoying big loan savings. Through our Easy to Join service we'll automatically transfer all your Direct Debits, standing orders and other arrangements to your Business Offset linked Corporate Current Account*. In addition, set up costs can be added to the loan. We do all the hard work. All you notice are the savings. Find out more about our Easy to Join service.

All it takes is a phone call

We know you want to save money and we also know you're busy. So we've made sure you can arrange Business Offset over the phone. In fact, it's probably one of the most profitable calls you'll ever make. 0845 300 1122†* (Open Mon-Fri 9am-5pm).

Business Offset Mortgage for Professionals

Additional benefits are available for doctors, dentists and vets. Find out more about Business Offset Mortgage for Professionals.

#This lets you send up to £2,500 in notes, in each envelope at a cost of £6 for Special Delivery, equivalent to 24p/£100.

*For your protection there are strict laws governing the financial management of pension funds. This means we are unable to instruct any pension provider to begin collecting payments from a different account. You will therefore need to contact your pension provider directly to give them details of your new Bank of Scotland account. They can update their system to collect the relevant payments from your new account.

Contact us on 0845 300 1122† (Mon-Fri 9am-5pm).

Or email us.