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Business base rates
Business base rates Intro
The rates on this page are the base rates only. Lenders charge their clients a rate made up of three parts.
The first part is the base rate, one that reflects the overall market costs of the funding, the type of loan, and the industry sector for this type of borrower.
The second part is client-specific. It takes into account the balance between the security involved, the track record of the borrower, and the specific nature of the funding requirements, among other things. This second part is usually referred to as the "margin" or "margin over base" and is essentially an assessment by the lender of how "risky" that specific loan is.
The rates on this page will not be what you incur when you take out business finance - it is only part of it. You can find the total actual rate your bank charges you on your latest bank statement.
That total rate applies to the actual daily balance you borrow.
Unfortunately, base rates cannot really be compared with each other easily, as each institution uses slightly different criteria for setting them. We maintain this page because the changes reveal important interest-rate trends that drive buiness lending, rather than revealing specific lending cost levels.
In addition, most banks will charge a monthly fee for the overall overdraft facility. This fee has various names. We have shown it below and labelled it "Overdraft Mgmt fee"; it applies to the value of the whole overdraft facility whether you use it or not. The rates listed below are the annual equivalents.