Tide Business Loans: Review

Everything you need to know before you apply for a business loan.

Updated: January 25, 2024
Matt Crabtree

Written By

Matt Crabtree

|
Rebecca Goodman

Edited By

Rebecca Goodman

 

When you're a new or growing business, you may need a little extra help with cash flow, and that's where business loans can help you.

Last year there were 5.6 million small businesses in the UK and the number continues to grow. So, whether you need money to expand or you are just looking for additional support, a business loan can tie you over until you're back to making a profit.

If you've never taken out a business loan before or you are looking for a better one than you've tried previously, you've come to the right place.

In this article, we'll share our review of Tide business loans and tell you everything you need to know before you apply for a business loan.

Quick look: pros and cons

Pros

✔️ Different types of loans: you can apply for start-up loans, business cash advances, invoice finance and other partner products

✔️ Quick decision: depending on the loan, you could have the funds in your account within 24 hours

✔️ A range of partners: Tide has a range of partners offering business funding options including British Business Bank, Liberis, iwoca, YouLend, and Funding Circle.

✔️ Banking integration: Tide offers open banking to connect any business account to the Tide platform

Cons

❌️ There are few reviews: Tide is a relatively new company, so there are few reviews online from users who have used the Tide platform for a loan

What Is Tide?

Tide is a business financial platform that offers digital business banking services in the UK. Tide was founded on 19 May 2015 by CEO Oliver Prill.

Tide offers mobile-first banking services for small and medium-sized businesses.

It is regulated by the Financial Conduct Authority (FCA) under the Electronic Money Regulations. New Tide business bank accounts are provided by ClearBank and are protected by the Financial Services Compensation Scheme (FSCS) which means up to £85,000 of money is safe, if the bank were to go into administration. It is also authorised by the Prudential Regulation Authority (PRA). Tide has e-money accounts provided by PrePay Solutions.

Tide offers the following services for businesses:

  • Free business bank account: ideal for freelancers, sole traders, and limited companies. You can set up direct debits, schedule payments, manage credit limits, and see your statements, and the account integrates with accounting software like QuickBooks and Xero.
  • Tide Plus account: you can upgrade the business account to a Plus one. You'll unlock 20 free monthly transfers, a free Expense Card for a coworker, access to a 24/7 legal helpline, member discounts, and a matte black card.
  • Tide Pro account: if you upgrade your business account to the Tide Plus account, you'll have unlimited free transfers, two free Expense Cards for coworkers, access to a dedicated team for support during weekdays 9 am – 6 pm, member discounts, and a matte black card
  • Tide cashback account: you can earn 0.5% cashback when you spend with your Tide card. The cashback card allows you to make 150 free transfers, three free Expense Cards, member discounts, and more.
  • Business loans: business and start-up loans to help businesses grow
  • Credit builders: Tide's credit builder feature helps you increase your business's credit score by demonstrating lending potential by reporting monthly repayments to Credit Reference Agencies. Credit Builder can act as a loan or a credit card you repay with 12 monthly payments.
  • Cash flow insights: benefit from automated business forecasting with Tide’s free cash flow Insights feature. Connect your business bank account to the Tide platform to access this feature.

Now that you know who Tide are and what they offer, let's explore the loans Tide provides.

The different Tide business loans

Although there are several types of business loans in general, you can get two main loan types from Tide:

  • Start-up loan: a personal loan used to help start a new business or grow an existing one still in its early stages
  • Business loan: a loan similar to a personal loan but only available to a commercial entity. Business loans are typically bigger than start-up loans. You can use a business loan to purchase stock, expand your business or other business needs,

1. Tide start-up loans

Key features:

  • Lending terms range from 12 to 60 months
  • Lend £500 – £100,000
  • Cash flow insights through Tide Connect

Turn your business idea into reality with a Tide start-up loan. You can get a 6% APR fixed rate loan ranging from £500 to £100,000 over 12 to 60 months.

There is no specified minimum turnover. However, your business must have a maximum of 36 months of trading to be eligible. Security and a personal guarantee may be required for this loan application. Interest rates and repayment terms may vary depending on the business's circumstances.

A start-up loan is ideal for small businesses looking to purchase inventory, hire staff, or expand business. Once you've passed the approval process, you could have the funds in your business current account within a few hours.

2. Tide business loans

Key features:

  • One month to six years lending period
  • Lend £500 – £15,000,00

With a Tide business loan, there are flexible repayment options, and you can borrow from £500 up to £15,000,000 across a fixed period of one month to six years.

Unlike a Tide start-up loan, there is no specified minimum turnover or time trading. Loan rates can be fixed or variable, subject to status and availability. Security o may be required to take out a business loan.

Tide business loans require a personal guarantee. You can choose from fixed or variable-rate loans offered through Tide partners rather than Tide. If you need any help with business finance, a business loan from Tide could help.

If you do your regular business banking with Tide, you'll gain access to their support team and get legal advice depending on your Tide account plan.

How do Tide business loans work?

The overall application process for Tide loans is simple.

Before applying for a Tide loan, you should check your eligibility. You'll need to pass a few basic requirements before you're accepted.

Eligibility criteria:

  • Be UK-based: you'll need to be a UK-based company and be either a sole trader or a limited company
  • Basic business information: you must show proof of your business's age
  • Business revenue: you may need to show bank statements, cash flow projections, and annual revenue, including net operating income
  • Credit checks: Tide will do a hard credit check with main credit agencies to see your credit score and creditworthiness to see if you're eligible to grant finance
  • Potential collateral: you could use any assets to back the loan in case of default. Assets you can use include inventory, property and equipment.
  • Personal debt-to-credit ratio: receiving a large amount of credit at the time of a business loan application may be seen as an additional risk to some lenders

How to apply for a Tide business loan

The application process is simple and easy using the Tide website.

Although this isn't a Tide business account review, there are perks to having a business account, like making all loan applications via the Tide app.

Once you know you're eligible, you can start the application process:

  1. Connect your business bank account: you can connect your business bank account to Tide in minutes. Tide runs eligibility checks to show you your business funding options.
  2. Compare loans: you can find out which loans you're eligible for and compare them without impacting your credit score. You'll see tailored credit options that suit your business needs.
  3. Apply in five minutes: after completing the application process, you'll receive a tailored quote
  4. Receive the decision: once the approval process occurs by Tide, you'll receive funds in your business bank account within 24 hours, depending on the loan

Tide Business loans: the verdict

All business loan funds will only be deposited into business accounts, not personal ones. So, if you're applying for a loan with Tide you will need a business account. It offers a free business bank account with plan upgrades if you want to keep all your business finances in one place.

Tide business loans are ideal for businesses that are small or midsize.

The loans have reasonable APR rates depending on the business loan you apply for. Interest rates vary from 6% up to 26.6% APR.

Another bonus is that Tide runs pre-eligibility checks on potential funding options so you'll know if you're likely to be accepted before you apply. This means you can find out if you will be accepted for the loan without harming your credit score. After entering your business details, you'll only be shown loans your business is eligible for.

Related Guides:

Tide Business Loans Review: FAQs

What Is the Interest Rate for a Tide Loan?

Is Tide a Good Bank for Small Businesses?

Who Owns Tide Business Banking?

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