NatWest business loans review October 2019

NatWest is a high-profile British bank offering plenty of business finance options. We've set these out along with the key features of loans currently available at NatWest.

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NatWest

NatWest Bank was formed in 1968 after the merger of National Provincial Bank and Westminster Bank. The bank was acquired by The Royal Bank of Scotland Group in March 2000 in a deal that was worth £21 billion.

NatWest provides loans for businesses of all sizes, with repayment terms that vary from 3 months up to 25 years.

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NatWest loan options

  • Small Business Loans. These are typically a quick way to borrow money. The interest rate is fixed, and there are repayment plans of 1-10 years. Suitable for most small to medium-sized businesses.
  • Variable Rate Loans. These have no early repayment charges and allow for repayment holidays, although you’ll still accrue interest. Terms are between 3 months and 25 years.
  • Fixed Rate Loans. These provide the security of fixed repayments with no charges for early repayments. The terms are 3, 5, 7 and 10 years. Payment holidays are possible but you must continue to pay the interest.
  • Commercial Mortgage. This lets you buy business property with either a fixed or variable repayment plan. The terms are either 3, 5, 10 or 25 years, and there is no early repayment fee or arrangement fee for new lending.

Key features of NatWest business loans at a glance

NatWest business loans have a variety of features.

  • Loan duration. Anywhere between three months and 25 years.
  • Loan amounts. The bank offers small, medium and large loans.
  • Security. NatWest offers secured business loans, and you can use various assets as security in the event you can’t make the repayments. However, if you use your home, it could be repossessed.
  • Fixed monthly repayments. This option is available with the Fixed Rate Loan and the Commercial Mortgage. You’ll pay the same amount every month, making budgeting easier.
  • Option to take a repayment holiday. This is possible with the Variable Rate Loans and Fixed Rate Loans. However, this will cost you more money overall as you will still be accruing interest during these breaks.
  • Repay your loan early at any time. This can be done at no extra cost with the Fixed Rate Loan and Commercial Mortgage.

Interest rates are fixed for the duration of your repayment period. However the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised representative APR.

Am I eligible for a NatWest business loan?

You should only apply for a NatWest business loan if you’re certain you can meet the repayment terms, and you meet the following criteria:

  • UK resident for at least 3 years
  • Over 18 years old
  • Turnover of up to £2 million for the Small Business Loan
  • A good credit rating without a history of county court judgments or bankruptcy

NatWest states that these loans should not be used for personal purchases. They are strictly for the purpose of investing in your business.

How can I apply?

If you would like to take out a NatWest business loan, you can apply via the NatWest website.

You’ll need to provide proof of the following:

  • The personal information of all of the firm’s partners, directors, members and signatories (NatWest will also require their residential addresses for the previous 3 years)
  • You’ll also need your business details, including your firm’s Companies House Registration Number if you’re a limited company
  • Information about all of the countries your business is registered in for tax
  • Cash flow predictions and your annual accounts

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