Lloyds Bank has unveiled a new offer which will see arrangement fees for term loans waived for small business customers with an annual turnover under £1 million.

The offer is aimed at the smallest businesses and start-ups and applies to borrowing up to £150,000.

For example, a start-up that wants to borrow £20,000 to pay for a new vehicle would save £300 which can be ploughed back into running the business. A business looking for finance to pay for new stock or equipment would avoid the £175 term loan arrangement fee on a £6,000 loan.

Jo Harris, managing director of Lloyds Bank Retail Business Banking, said: “Every penny counts when you’re setting up a business. A saving of a few hundred pounds can make a big difference to a start-up.

“Waiving our arrangement fees on term loans will benefit many of our smallest business customers to help them to grow. It also sends a positive signal which should help to build confidence in the availability of finance.”

The offer runs from 6 October 2016 until 9 January 2017. It is open to customers who complete their applications prior to 9 January and draw down their loan within three months. Other fees and conditions may apply.