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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    • Credit limits up to £500,000
    • 24 hours to get a decision
    • No fees for repaying early
    • Top-ups available

    Loved by over 90,000+ small businesses since 2012

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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.

    How does an iwoca business loan work

    1. 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.

    2. 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.

    3. 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.

    Apply now

    Applying won't affect your credit score

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    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.

    Fund your future with a business loan

    Estimate your monthly repayments with our calculator

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    Frequently asked questions

    Here are some frequently asked questions that you might find useful.

    What documents are needed for an RBS business loan?
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    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 loan
    • information about your business
    • annual accounts of tax returns for the last two years
    • proof of assets and debts
    • a business plan
    • an up to date cash flow forecast
    • Information regarding other business interests

    Getting 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?
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    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 time
    • registering for the electoral roll
    • paying off any debts you may have, and paying more than the minimum allowed
    • close old or unused credit cards accounts, direct debits and phone contracts
    How long does it take to be approved?
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    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?
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    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?
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    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?
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    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.

    The iwoca story

    Over the past eleven years iwoca has grown from a small start-up to one of the fastest-growing business lenders in Europe. Now we're a team of around 400 in London and Frankfurt working towards the goal of funding one million small businesses.

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    Questions? We're here to help

    Call us at 020 3397 3375 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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    Call us on 020 3778 0629
    Mon - Fri: 9am - 6pm
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