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Small Business Loan

Business funding that’s fast, simple and flexible

On this page:

Loan in detail

Useful info

What I'll pay

Apply now

Looking for funding to support your business through challenging times?

Our Small Business Loan could be the ideal lending solution. Whether you're looking to ease the impacts of coronavirus, or need funds for everyday requirements, applying online is quick and simple.

Borrow from £1,000 to as much as £50,000, subject to approval

No arrangement or early repayment fees

Choose to pay us back over a term of 1 to 7 years, subject to credit status

Up to 10 year terms may be available on request

Fixed rate of interest

Suitable for all business customers and applying online is quick and simple

Small Business Loan fact sheet (PDF, 111KB)

A personal, director or member's guarantee may be required. Over 18s only. Subject to status, business use only.

The small business loan in detail...

OpenClose

Borrow from £1,000 to £50,000

It's fast and simple Close

Our Small Business Loan can finance your business and help it grow. Whether you want to purchase equipment, inventory or increase working capital. Subject to status.

No arrangement or early repayment fees

Keeping costs down Close

Borrow from 1 to 7 years

Flexible repayment terms Close

The longer the term, the smaller your monthly repayments which can help you budget.

Up to 10 year terms may be available on request.

Fixed rate of interest

Helping you plan Close

This means your monthly repayments won’t change throughout the duration of the loan. We calculate the monthly repayment amount based on the size of the loan and your credit status.

How business loan rates are calculated

Interest rate calculation Close

Your interest rate is calculated on the loan term, the amount you want to borrow and your status.
You need to make a repayment every month
You’ll be paying off the capital and the interest
You cannot take a repayment holiday at the beginning or in the middle of this loan
You can’t do a tranche drawdown (take the loan in instalments)

Form of guarantee

What you need to know Close

The personal, director or members guarantee is the only form of guarantee we’ll need.

A director, partner or member’s guarantee is a personal guarantee that confirms that you (the director) will be liable for the company’s debt. If you cannot meet the debt, we might seek additional security to settle that debt.

Useful information about our Small Business Loan.

Do I need a Royal Bank business account to apply?

We are here to help, there is support available and we want to get it to those who need it, but with unprecedented demand in the first instance we are processing applications from our existing customers.

You may be able to access support more quickly by contacting your current bank.

If they are unable to assist; a list of accredited providers is also available on the British Business Bank website.

Details needed when applying for a Small Business Loan

You’ll need the personal details of all the partners, directors, members or signatories of the business (including their home addresses for the last 3 years). You’ll also need your business details, including your Company’s Registration Number (provided by Companies House) if you’re a limited company. Also, details of any countries you or your business is registered for tax purposes in and details of your business' year-end accounts or cash flow forecasts.

How can I improve my chances of being approved?

If you're an existing customer, it’s really important that your personal and business details are close matches to what we have on your file. If they're different, it will be worth updating them before you apply.

If in doubt, please check what is on file at Companies House and update any out of date information before you apply.

Please be accurate with your income declaration. If we believe you can't afford the repayments on the amount you apply, you may be declined.

For instance, if you declare an income of £250,000 and we see £180,000 going through your NatWest account, your application may be referred or declined.

Can I apply if my turnover is over £2m?

What is a business loan interest rate?

What factors impact a business loan interest rate?

What are typical business loan rates?

A representative APR (Annual Percentage Rate) is an advertised rate that is presented in a standard way, that allows you to compare and contrast borrowing costs between different lenders. When a representative APR is promoted, it means that over half of people who've taken out a loan of a particular size from a lender have been given this rate. The interest rate you're offered won't necessarily be the same as the representative APR.

Can Business Banking Switch customers apply?

Customers who have been contacted directly by us to advise they are eligible for the Business Banking Switch scheme are able to apply for a CBIL term loan or Small Business loan by emailing the Business Banking Lending team: directbusinessbankinglendingteam@rbs.co.uk

Or call us on 0345 307 0900.

Lines are open Monday to Friday 9am - 5pm.

Business Banking Switch customers are unable to apply online.

If you are unsure if you are eligible for Business Banking Switch, visit the Business Banking Switch site for more information.

You can also find a list of accredited providers is also available on the British Business Bank website.

Repayment Holiday for Existing Business Loan Customers

If you're an existing Royal Bank business customer and your business has been impacted by coronavirus, you could be eligible for a repayment holiday on your existing business loan.

Repayment Holiday is available for up to 12 months.

If you have already had a repayment holiday or your current repayment holiday is coming to an end, you may be eligible to apply for a further payment holiday up to a total of 12 months, including any payment holiday already taken.

Interest may accrue during any repayment holiday, meaning it may take longer to repay the loan and may cost more in the long run.

If you have a Relationship Manager you need to contact them in the first instance to discuss your needs.

If you do not have a Relationship Manager you can Apply Online. We will contact you within 7 business days.

Due to high demand it's taking longer to process applications, please bear with us.

Ready to apply?

Let's get started

Are you a...

Existing business customer

New business customer

What is your annual turnover...

Under £2m per year

More than £2m per year

Do you have online banking...

Yes

Existing customers

Due to high demand its taking longer to process applications, please bear with us.

Don't have online banking?

Apply now using our simple online application form.

Due to high demand its taking longer to process applications, please bear with us.

If your turnover is more than £2m per year

Please contact your Relationship Manager to discuss your needs.

New Customers

You may be able to access support more quickly by contacting your current bank.

If they are unable to assist; a list of accredited providers is also available on the British Business Bank website.

Customers with hearing and speech impairments can contact us by using our Relay UK Service: 18001 0345 600 2230

For more information visit the accessibility page.

Calls may be recorded for training and monitoring purposes.

To see how much your call might cost, visit the call charge information page.

Don't have online banking, why not register today?

Setting up Online Banking will only take a few minutes and gives you all the tools you need to manage your money online.

Business loan calculator

Our Small Business Loan interest rate calculator can show you the rates you might pay and check your eligibility for lending up to £25,000. You can now also check the rates you're likely to pay for lending up to £50,000.

Amount you'd like to borrow

Note: You can only check rates up to £25k. You can still apply online for up to £50k.

You'd like to repay it over

The rate you pay depends on your circumstances and loan amount may differ from the Representative APR.
Representative APR (Annual Percentage Rate) is used for comparison purposes and shows the annual interest rate we expect at least 51% of customers who are accepted for and enter into a loan agreement with us to get. APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee.

Representative example

Monthly repayments

£7,500

Interest rate % (fixed)

8.2%

Total repayment

£8,253.00

Representative APR (variable)

£137.55

Total repayment

£8,253.00

Check eligibility

There's no obligation and you won't be credit checked.

100.00% of SME customers received an end quote that was the same, better or no more than 10% above their indicative quote.

You may also eligible for a Business Overdraft

Check out our Business Overdraft

The rate you pay depends on your circumstances and loan amount may differ from the Representative APR.
Representative APR (Annual Percentage Rate) is used for comparison purposes and shows the annual interest rate we expect at least 51% of customers who are accepted for and enter into a loan agreement with us to get. APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee.