The Co-operative Bank was established in Manchester in 1872. There are 68 branches in the UK. Business customers can access business finance, current accounts, and savings products. The bank avoids investments in ‘unethical’ businesses and trades.
Co-operative Bank Business Finance
Business loans are available between £1,000 and £250,000 with a repayment period of 1-15 years – sole traders can borrow from £25,020. Most loans are secured and interest is charged on a monthly basis. If your business is using the loan to buy an asset, the Co-op will offer a maximum 70% loan funding against asset purchase. An arrangement fee of 1% of the loan amount will apply.
Secured and unsecured overdrafts of up to £250,000 are available. Your business must have a Co-operative Bank business current account to be eligible. Arranged overdrafts of up to £25,000 are charged at 6.28% (Variable) representative EAR. There’s also a 1.5% overdraft arrangement fee (or £50 – whichever is greater).
Business charge card
Co-operative business charge cards give customers an interest-free period of up to 48 days. Cards can be used for both payments and cash withdrawals. There’s a £2 monthly fee.
Co-operative Bank Reviews and Ratings
Co-operative Bank reviews and ratings are very mixed, with some sites criticising them and others giving them a good review. Trustpilot reviewers think they’re ‘Poor’ with many citing issues with “unusable” online banking, slow response times, and poor customer service. Most Smart Money People reviewers are much happier and think service is great.
The Co-operative Bank didn’t rank at all in a list of the 14 largest business current account providers for SME overdraft and loan services in an independent survey.
In the same list of 14 business current account providers, the Co-operative Bank ranked 11th for overall service quality, 14th for online and mobile banking services, and 12th for relationship/account management and service in branches.
It’s a different story on Which?. The Co-operative Bank scores 4/5 for communication, customer service, applications, transparency of charges, and online banking. The Co-op also scored 3/5 for service in-branch and handling complaints.
- Fixed and flexible repayment options on business loans.
- Ethical banking.
- Less choice compared to other large banks.
- Low rating for SME overdraft and loan services in an independent survey.
Website: Co-operative Bank Business Finance