Royal Bank of Scotland, one of the “Big Four” UK banks, was founded almost 300 years ago. It’s credited with the invention of the overdraft, which was considered an innovation in modern banking.
RBS offers several different business finance tools, so it is worthwhile understanding the features and benefits of each so that you can pick the one that’s right for you. It’s straightforward to apply for a loan on the RBS website, and you could get a decision in minutes.
What business finance products does RBS offer?
Arranged business overdraft With an RBS overdraft there’s no minimum amount to be paid back every month and you only pay interest on the amount of money that you use. You could borrow up to £50,000 without security (subject to approval). Learn more about business banking.
Business credit cards RBS business card can offer an ongoing, flexible line of credit plus the chance to earn cashback on business spending. Check out the current RBS range or compare all business credit cards.
If you opt for a fixed-rate loan, interest rates are fixed for the duration of your loan. The interest rate you’re offered will depend on factors such like how much you borrow and for how long, your company turnover and your business and personal credit score. It may differ from the advertised representative APR.
If you opt for a variable rate loan, the interest rate vary at RBS’s discretion (typically in-line with market rates generally). Opting for a variable rate product can sometimes let you access better rates initially, but also means you’re exposed to fluctuations in rates over time.
Am I eligible for an RBS business loan?
You should only apply for a RBS business loan if you are certain that you can meet the repayment terms. You must also meet the following criteria:
Aged 18 or over
Your registered business address must be in the UK, Channel Islands, Isle of Man or Gibraltar
The loan must be used for business only
You need to provide evidence of your accounts for the previous 24 months, as well as any tax returns, and a business bank account statement for the previous 6 months
You must hold a good credit rating without a history of county court judgments or bankruptcy.
Formerly RBS services were available to firms with a turnover of up to £2 million, but the cap’s recently been removed.
How can I apply?
If you’ve decided that a RBS business loan is right for you, you can apply for the loan on the website. Simply fill in the application form, and you will receive a decision in minutes. You will need to provide your personal and business details. You’ll also need to provide proof of the following:
Your address details for at least the past 3 years
Your business accounts.
What can’t RBS do?
Outside of the services RBS has to offer to growing businesses, you may wish to consider the following products:
Merchant cash advance
Get a lump sum upfront to repay in-line with volume of future sales. Compare a panel of lenders and learn how business cash advances work.
You’ll need to provide the personal details of all the partners, directors, members or signatories of the business, including home addresses for the previous 3 years, as well as your business details, accounts and taxes.
Yes, you can still apply. You’ll just have to answer a few more questions during the application process!
If you’re an existing customer and use online banking, you could have access to the funds the next working day after your application has been accepted. However, if you aren’t registered for online banking or aren’t currently a customer of RBS, you could receive the funds within two days of being accepted.
Yes, but RBS suggests postponing any new applications until your credit rating or circumstances improve.
Yes. Most of RBS’s business loans come with the option to take capital repayment holidays. It’s important to note that you’ll still need to make interest payments during this time, and that by taking a repayment holiday you’ll increase the term of your loan (and therefore the overall cost).
You can benefit from a tranche drawdown (i.e. drawing down the loan in instalments) with the variable rate loan but not with the fixed rate loan.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
Business loan statisticsBusinesses all over the UK face financial instability daily, which often requires outside funding. We have looked into how the state of borrowing for these businesses differs between the industry, over the years, and for the size of the business.
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