Royal Bank of Scotland business loans review
Discover detailed reviews on Royal Bank of Scotland business loans. Get insights into RBS small business loan offerings to make an informed financial decision.
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What is the Royal Bank of Scotland?
RBS is a large, high street bank with over 700 branches across Scotland, England and Wales. Founded in 1727, RBS now offers trade, invoice and asset finance as well as a number of different types of business loans.
Am I eligible for an RBS loan?
RBS do usually accept applications from new customers, but due to the increased demand for finance as a result of coronavirus, you’ll need to be an existing customer to apply.
You'll also need:
- to be a UK resident
- to be over 18 years old
- your business to be registered in the UK, Channel Islands, Isle of Man or Gibraltar
- to use the loan for business purposes
- to hold a good credit rating
How do I apply for an RBS business loan?
You can apply for each of the RBS loans online. Make sure you’re on their ‘business’ section, then navigate to their loans and finance tab via the products and services. Here, you’ll find each loan description and the relevant application forms.
What are the advantages of an RBS business loan?
- There are three different repayment profiles to choose from, meaning you can pick the right one for your business
- You can fix your interest rate for between 10 and 15 years with the Small Business Loan and Fixed Rate Loan products
- RBS state that their decision making process is transparent, and offer a dedicated relationship team
What are the disadvantages of an RBS business loan?
- RBS are only serving existing customers at the moment due to the increased demand for business finance during the coronavirus crisis
- RBS has a low Trustpilot rating at just 1.4 out of 5
- You’ll pay arrangement and security fees for some of RBS’ loan products, depending on how much you borrow.
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.
What documents are needed for an RBS business loan?
To apply for a business loan through RBS, it’s likely you’ll need to provide information about the financial position of your business. The amount of information you’ll need will depend on whether you already bank with RBS or not.You could be asked to provide the following depending on which RBS business loan you apply for:details on the purpose of your loaninformation about your businessannual accounts of tax returns for the last two yearsproof of assets and debtsa business planan up to date cash flow forecastInformation regarding other business interestsGetting these documents ready before you apply is likely to increase the speed of your application and get you the funds faster. Read more about which information each business loan requires using this checklist.
Will RBS perform a credit check?
It’s normal for a lender to perform a credit check on businesses applying for finance to gauge their health and history. RBS will carry out one of these checks if you apply for a loan.You’ll be able to maintain a healthy credit score by:paying your bills on timeregistering for the electoral rollpaying off any debts you may have, and paying more than the minimum allowedclose old or unused credit cards accounts, direct debits and phone contracts
How long does it take to be approved?
The RBS website doesn’t provide any timelines, so it’s best to enquire directly if possible. Bear in mind that RBS have seen an increase in demand for business finance due to the coronavirus pandemic, so approval times for loans may be longer than usual.
Will I need to provide security?
You may need to provide security for your RBS business loan, but whether you do will depend on the specifics of your agreement. All product specifications state that security ‘may be required’ so it’s best to clarify this with RBS themselves during your application.
Can I repay my loan early?
The Fixed Rate, Variable Rate and Small Business Loan all allow you to make early repayments with no charge. This means you can save on interest if you decide your business no longer needs the money.
How are repayments structured?
RBS has three types of loan repayment profiles that dictate how you’ll pay back your loan. These repayment profiles are called Capital & Interest, Straight Line and Bullet. Some of their loan products only give you one option, but it’s worth knowing what they all mean as it may influence your final decision.Capital & Interest : You repay your loan principal and interest periodically. It’s likely you’re already familiar with this repayment structure as it’s how loans are typically paid back.Straight Line: You’ll periodically repay your loan principal, while interest is applied separately to an RBS current account.Bullet: You repay the principal of the loan in one instalment at the end of the loan, with quarterly interest applied to an RBS current account.RBS’ Small Business Loan and Variable Rate Loan only allow you to repay using the Capital & Interest profile, while the Fixed Rate Loan offers all three options.
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.
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