There are plenty of different funding options available to small businesses across the UK. From government grants and angel investment to alternative finance, many SMEs ultimately settle on a mixture of finance products to give their business the boost of working capital it needs to prosper.
Whilst alternative finance products are on the rise, it's also well worth taking a look at the traditional bank loans on offer. To get you started, we've put together a quick guide to the Royal Bank of Scotland (RBS)'s business banking products to help you understand if they're the right fit for your SME.
RBS business loans
RBS offers a range of finance products to its business customers in the form of small business loans, business credit cards and a business overdraft facility. We've summarized the main RBS funding options for business use only below:
RBS small business loans
- Business owners can borrow between £1,000 - £50,000, unsecured, with RBS' small business loan
- You can borrow the funds over a term of 1-10 years
- There are no arrangement fees or early repayment charges with this product
- You can also make overpayments on your RBS loan for free
- You don't have to be an RBS customer to apply for their small business loans
- If you want to borrow over £50,000, secured, you can opt for RBS' Fixed Rate Loan and Variable Rate Loan
RBS business credit card
- Successful applicants must have a business bank account with RBS
- Businesses need to have an annual turnover of £2 million
- £30 annual fee per cardholder (no fees in the first year and no annual fee if you spend £6,000 or more each year thereafter)
- Minimum credit limit of £500
- You can also enjoy 56 days of interest-free credit
- You can also apply for an RBS Business Plus credit card, which offers additional features such as no charges for purchases abroad
RBS business overdraft
- Borrow up to £50,000, unsecured, with RBS' business overdraft
- There's the option to pay 'interest only' on the amount you've borrowed
- There are no set monthly repayments
- This product is only available to existing RBS business banking customers
- You can only use RBS' business overdraft for 12 months
Alternatives to RBS business loans
If you decide that RBS business banking products are not for you, there are plenty of other alternative finance options to explore. To start with, it's worth looking into the different product types offered by alternative lenders, such as merchant cash advances, invoice financing and small business loans.
These products can be used for a wide range of funding purposes, such as for purchasing stock in bulk, improving cash flow, recruitment, business expansion, management buy-outs and plenty more. Or, if you're at the earlier stages of setting up your business, there's plenty of information available online about the startup funding options currently available to UK businesses.
How Fleximize could help
Along with being able to provide you with funds faster, alternative lenders can be a lot more flexible than banks, both on terms and criteria. For example, Fleximize's business loans are available on a secured or unsecured basis, with flexible features built-in as standard. Here are the key details:
- Unsecured business loans of £5,000 - £250,000, on terms of 1-24 months
- Secured business loans of £5,000 - £500,000, on a maximum term of 48 months
- Funds deposited in as little as 48 hours, meaning no disruption to your business
- Take repayment holidays and top up your loan after three successful repayments
- No hidden fees or early repayment charges; only pay interest for the time you had the loan
- Flexible lending criteria – businesses don't need to have a perfect credit history
If you want to find out more about how a Fleximize business loan can give your small business the boost it needs, call one of our relationship managers for an informal chat on 020 7100 0110. Or, if you're ready to apply, you can do so by clicking on the button below.
* Header image provided courtesy of Peter James via WikiMedia Commons