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Royal Bank of Scotland (RBS) Business Loans & Finance

The Royal Bank of Scotland is part of The Royal Bank of Scotland Group plc. The bank recently changed its name to NatWest Group and offers many of the same products. This won’t affect branches in Scotland which will retain the Royal Bank of Scotland name. The bank offers loans and business finance, current accounts, and saving products to small and large businesses throughout the UK.

Royal Bank of Scotland Business Finance

Business loans

Businesses can borrow from £1,000 up to £50,000 through either the Royal Bank of Scotland Small Business Loan or the Bounce Back Loan Scheme, for UK businesses affected by coronavirus. With the Small Business Loan, your business can borrow over 1-7 years (sometimes up to 10 years) with a fixed interest rate. The Bounce Back Loan is repaid over 6 years with a 12 month capital repayment holiday at the start of the loan. £50,001 up to £5 million is also available through the Coronavirus Business Interruption Loan Scheme. Terms are up to 6 years with fixed or variable interest rates and you can also take a 12 month capital repayment holiday at the start of the loan.

Larger businesses can borrow commercial finance £25,001 to £10 million with fixed or flexible terms.

Business overdrafts

Existing business customers can access an arranged overdraft of up to £50,000 unsecured. An arrangement fee of 1.5% or a minimum £150 fee is applied to overdrafts up to £1,500. Fees and interest rates for larger overdrafts will be confirmed on application. The overdraft limit will be reviewed every 12 months.

Business credit card

Three different business credit cards are available from the Royal Bank of Scotland:

Business credit card

  • For businesses with an annual turnover under £2 million.
  • Representative 24.3% APR (variable).
  • £30 annual fee per cardholder (waived for the first year and the second if you spend £6,000 or more).
  • 56 days interest-free credit period on purchases.

Business Plus credit card

  • For businesses with an annual turnover under £6.5 million.
  • Representative 29% APR (variable).
  • Earn up to 2% cashback on eligible suppliers.
  • £70 annual fee per cardholder.
  • 56 days interest-free credit period on purchases.
  • No charge for purchases abroad.

onecard

  • For businesses with an annual turnover above £2 million.
  • £45 annual fee per cardholder.

Commercial mortgages

Businesses can borrow from £25,001 with no upper limit on a variable interest rate, or up to £10 million on a fixed interest rate. Repayment terms are up to 25 years with the option of a repayment holiday at the beginning of the mortgage. Capital & Interest or Straight Line repayment profiles are also available.

Real estate finance

Real estate finance from £50,000 is available to fund residential and commercial developments. Loans can be fixed or variable and repaid over up to 3 or 5 years.

Invoice finance

Royal Bank of Scotland has a range of working capital products for businesses to release cash tied up in invoices or assets, including Invoice Discounting, Invoice Factoring, and Asset Based Lending.

Trade finance

Financing options are available to businesses trading internationally and importing and exporting, including:

  • Bonds, Guarantees & Standby Letters of Credit
  • Letters of Credit
  • Documentary Collections
  • Trade loans

Royal Bank of Scotland Reviews and Ratings

Royal Bank of Scotland’s online reviews are mainly negative or average. 89% of Trustpilot reviewers rate the service 1/5, commenting on slow waiting times and poor customer service. Some have had issues with their accounts being blocked without warning. There are only three Reviews.co.uk reviews but they’re mainly positive. Smart Money People reviews are spread across the bank’s products and services and are slightly more complimentary, but there are still lots of customers unhappy with the service they’ve received, especially during the Coronavirus crisis.

On Which?, RBS scores 4/5 for mobile and online banking, 3/5 for customer service, communication, transparency of charges, and telephone banking, and 2/5 for service in-branch and account benefits.

RBS ranked 11th in a list of the 14 largest business current account providers for SME overdraft and loan services in an independent survey. The bank also ranked 14th for overall service quality, joint 6th for online and mobile banking services, joint 12th for relationship/account management, and 13th for service in branches and business centres.

Royal Bank of Scotland adopted the NatWest name in July 2020, losing its RBS branding. According to a report from BBC News, this is unlikely to make much difference to customers. RBS’ business finance products are identical to NatWest’s and are provided by the same organisation.

Trustpilot –  1.4/5 (based on 430 reviews)
Reviews.co.uk – 3.67/5 (based on 3 reviews)
Smart Money People – 3.97/5 (based on 383 reviews)
Which?
– 62% Which? Customer Score

Pros

  • Decent choice of cards, loans, and finance available.
  • Finance suitable for small and large businesses.

Cons

  • Majority of online reviews are critical.
  • Poor ranking in an independent survey of business banks.

Website: Royal Bank of Scotland Business Finance

Disclaimer: Businessfinancing.co.uk is a business finance and lending research and information website publisher. We are not a lender, bank, broker and/or other financial institution and as such we are not authorised or regulated by the FCA to offer financial advice. We can't recommend any of the products and/or services featured on the site. Companies are ranked in no particular order and higher ranking does not imply one company is better than another. We work with FCA authorised and regulated firms who may pay us a commission for referring you to them but this has no impact on our content and helps keep this website free to use.



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