Yorkshire Bank is part of CYBG plc and the English trading name of Clydesdale Bank, which was recently bought by Virgin Money. The bank was founded in 1859 and has branches across the north of England and the midlands, though many of them are soon to close or be rebranded. Yorkshire Bank offers business loans and finance, business current accounts, and savings products for both small and commercial businesses.
Yorkshire Bank Business Finance
Business loans
Flexible and fixed term loans are available. Unsecured fixed loans are available from £1,000 to £25,000 at 9% APR representative. Interest calculated daily over the period of the loan and is applied monthly or quarterly. Flexible loans are available from £25,000 and repayment can be flexible based on how your business’ cashflow changes, which includes capital repayment holidays, lump sum repayments, and low start repayments. The terms vary depending on your repayment options – interest only is from 1 to 5 years and the capital & interest option is from 1 to 15 years.
Coronavirus support is available through the Coronavirus Business Interruption Loan Scheme (£50,001 to £5 million) and the Bounce Back Loan Scheme (£2,000 to £50,000).
Business overdrafts
Overdrafts up to £25,000 are available at p.a (variable) 8.75% for existing business current account holders. There’s also 2.5% establishment fee (minimum of £120). This is a short-term facility up to 12 months.
Business credit card
The business credit card is available at representative 22.4% APR (variable). Up to 59 days’ interest free credit is available on purchases and there’s no annual fee to pay for the first year. The minimum credit limit available is £500 and your business’ specific credit limit will be confirmed during the application.
Asset finance
Hire purchase and lease agreements are available through Yorkshire Bank covering manufacturing, agricultural, engineering, plant hire, vehicles, and more.
Hire purchase:
- Your business will own the asset at the end of the term
- Interest rates fixed or variable
- Minimum term of 6 months
- Maximum term is negotiable on application
- Some extra fees apply
- Deposit may be required
Lease:
- Your business rents the asset and will receive a proportion of the final sale at the end of the agreement
- Interest rates fixed or variable
- Minimum term of 6 months
- You can recover the VAT on each rental
Invoice finance
Invoice discounting is available through Yorkshire Bank. Businesses can release cash tied up in unpaid invoices and receive their funds immediately. This is a facility for larger businesses with invoices of at least £50,000.
Yorkshire Bank Reviews and Ratings
Yorkshire Bank’s reviews are mainly negative, with many customers having difficulties during the Coronavirus crisis. This isn’t uncommon and many of the big banks have received similar criticisms on online review sites. Many customers have had bad experiences with waiting times, account management, and customer service. They’re also not impressed with the experience in branches and online.
On Which?, Yorkshire Bank scores 5/5 for mobile banking, 4/5 for customer service, complaint handling, telephone banking and online banking, and 3/5 for communication, transparency of charges, and service in-branch.
Yorkshire Bank ranked joint 3rd 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
In the same list of 14 business current account providers, Yorkshire Bank also ranked 4th for overall service quality and relationship/account management, 9th for online and mobile banking, and joint 4th for service in branches and business centres.
Just like Clydesdale Bank, which is part of the same group, some Yorkshire Bank branches will adopt Virgin Money branding. 52 Yorkshire Bank branches are set to close and others will be merged. The rebrand is set to be completed by January 2021.
Trustpilot – 1.4/5 (based on 258 reviews)
Reviews.co.uk – 2.75/5 (based on 4 reviews)
Smart Money People – 3.65/5 (based on 110 reviews)
Which? – 69% Which? Customer Score
Pros
- Choice of cards, loans, and finance available.
- Flexible and fixed solutions.
- Ranks in the top 5 business banks in an independent survey.
Cons
- Majority of online reviews are critical.
- Branches are disappearing. Will soon be rebranded as Virgin Money.
Website: Yorkshire Bank Business Finance