RBS Business Loans Review

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By Rob Binns | Senior Writer

RBS are one the world’s oldest banks and continue to be one of the largest financial institutions in the UK to this day. With a vast array of products and services to suit large and small businesses alike, they are one of the first ports of call for many UK businesses seeking funding and financial services in general.

Loan Options

RBS provide a variety of loans that can be tailored to suit businesses of various shapes and sizes, including start ups. Due to the way the loans are structured, most applicants are able to construct their funding in a way that suits their needs perfectly. These include:

  • Small Business Loans
  • Fixed Rate Loans
  • Business Credit Cards
  • Business Overdrafts
RBS Business LoansRating
Small Business Loans
Fixed Rate Loans
Loan Amount
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Small Business Loans

Something of an umbrella term for a type of loan, RBS small business loans are a flexible way to help small businesses expand and survive in the short to medium term, typically up to four years.

Fixed rate loans are available in the short term for up to £25,000 and all SME (Small to Medium Sized Enterprises) can benefit from their competitive interest rates, although these will be dependant on the value and length of the loan.

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Fixed Rate Loans

For larger value funding, fixed rate loans, those between £25,000 and £500,000, RBS provide a flexible, yet repayment predictable, loan to larger or well-established ventures.

Loan terms can remain fixed for as long as ten years for higher value funding and most loans are flexible enough to be modified to suit the individual needs of each customer. This can allow for changes in terms of existing loans, something that is vital for those whose situation is fluid. What’s more, there are no arrangement fees or penalties for early repayment, meaning as your business grows, the loan need not restrict you.

Business Credit Cards

Business credit cards can be a great way of solving cash flow problems in the short term. There are many advantages to using an RBS credit card for businesses, including travel insurance worth up to £50,000, and there are many repayment options available.

As with most credit cards it can be a highly costly method of funding, however, and should only be considered if you are confident of making repayments in a timely manner. To this end RBS provide an online system, Cards OnLine, which provides advice and a transparent overview of all your spending.

Most businesses with an annual turnover of up to £2m are eligible.

Business Overdrafts

Business overdrafts can be the perfect funding method for start up companies, although SMEs of all types can benefit from it. Once the overdraft has been agreed, RBS can provide advice as to the safest and most appropriate value of the overdraft. The main advantage is the ability to access funds to help with cash flow, which can assist with reinvestment, offer peace of mind with financial planning and a level of security in the day-to-day running of the business.

The advantage of agreeing an overdraft rather than a loan is that you only pay interest on the money you borrow, although fees do apply. All overdrafts are flexible and terms can be modified when needed.

Alternative Funding

In recent years alternative funding has become a highly popular method of funding with businesses of all sizes. This, in part, has been fuelled by the financial crisis of 2008 and the subsequent difficulties in obtaining traditional funding from the major high street banks.

Invoice financing is one of the most popular ways UK businesses access funding and to this end RBS have constructed the highly regarded RBS IF model, one of the largest in the UK.

There are a variety of invoice financing methods, but all are essentially ways to access future profits in order to help with cash flow. By selling the value of an invoice to RBS IF you can be provided with up to 90% of their value within 24 hours.

Expert Market is a trading name of Marketing VF Limited, which is an appointed representative of Resolution Compliance Limited (FRN: 574048) ) which is authorised and regulated by the Financial Conduct Authority. Marketing VF Limited is registered in England and Wales. Company number: 06951544. Registered office: Imperial Works, Block C, Perren Street, London, NW5 3ED, United Kingdom.

Rob Binns Expert Market
Rob Binns Senior Writer

Rob writes mainly about the payments industry, but also brings industry-specific knowledge of CRM software, social media monitoring, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny corner, with a beer and a battered copy of Dostoevsky.

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