Esme business loans review
In this article, we assess whether Esme – a NatWest backed small business lender – could be the right source of funding for your business.
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Esme was founded in 2016 to help small business owners secure finance. Backed by NatWest, Esme is an entirely digital platform that provides business loans to meet the cash flow, working capital and other financial needs of SMEs. Applications for an Esme business loan can be made online on any device.
What are the advantages of an Esme business loan?
It's quick and simple to apply for an Esme business loan. You can apply on any device with an internet connection, and it takes less than 10 minutes.
Other advantages include:
- Your credit score is not affected
- You can receive funds within an hour
- No early repayment charges
- No collateral is required to secure a loan
- Monthly repayments are fixed, making it easier to budget
- No set-up fees
- Preferential rates for existing customers, and the possibility of preferential rates if you bank with NatWest
What are the disadvantages of an Esme business loan?
- An Esme business loan cannot be used to purchase equity in other businesses
- An Esme business loan is only available to companies registered in the UK which have been trading for a minimum of 18 months
Further considerations
The marketplace for alternative finance is extremely varied and developing fast. There are many options today for small businesses in need of funding, so it pays to explore all the possibilities and find a provider that can match your precise requirements.
How does an iwoca business loan work
Apply in minutes
It takes five minutes from start to finish. We're designed with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We'll approve you based on your business performance. You then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy. As your business grows your credit limit will too.
Loved by over 150,000+ small businesses since 2012
Short Term Business Loan Calculator
You’ll never face any early repayment fees, even if you choose to repay your loan after a few days or weeks.
We’ll only charge interest on your outstanding balance for the days you’re using your business loan.
Borrowing for over 12 months may incur an additional fee, typically it's 5% when borrowing for 13 to 24 months and 6% for longer.
This loan calculator is only an example, your actual rate and repayment amount for your business loan will vary based on your circumstances. Here’s another example: if you borrowed £10,000 for 12 months at 49% representative APR, with an interest rate of 40% p.a. (variable), then, all in all, the total amount you’d repay would be £12,294.
Fund your future with a business loan
No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.
Easy application
We’ve designed our application process to be as slick as possible: link your bank account and get going in minutes.
No hanging around
Once you’re approved, we’ll ping the money straight to your account. And if you need more later, you can apply for a top-up.
Frequently asked questions
Here are some frequently asked questions that you might find useful.
Am I eligible for an Esme business loan?
To take out an Esme business loan, you must satisfy the following lending criteria:Over 18 years old and a UK residentSole trader or a director of a limited companyActively trading for at least 18 monthsTurnover of more than £15,000 per annum
How do I apply for an Esme business loan and what documents are needed?
You will need to submit:Personal detailsInformation on your business (company bank statements, financial accounts, your last five quarterly VAT returns)
Will Esme perform a credit check?
Esme say on their website that they will not carry out a full credit check. It only performs a ‘soft credit’ search on you and any directors if applicable. Soft credit checks do not affect your credit score, and they cannot be viewed by other lenders.
How long does it take to be approved?
You can apply for an Esme business loan in less than 10 minutes, with receipt of funds in less than an hour. Esme states online that it aims to make all decisions within one working day.
Will I need to provide security?
Esme business loans are unsecured. Lending decisions are based on credit ratings, so security in the form of assets will not be required. With a secured loan, the business would need to provide property or other assets as collateral.
Can I pay off an Esme business loan early and can I make overpayments on an Esme business loan??
Yes, overpayments are allowed and there is no charge on full or partial repayments. You can repay the loan at any time. There are no early repayment charges.
Here are other financing options that could suit your needs
Questions? We're here to help
Call us at 020 3778 0274 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
We're here to help
