NatWest to help small businesses with £1bn lending fund
NatWest is launching a £1 billion lending fund to help small businesses grow.
The fund will be available to businesses across England and Wales with a turnover of under £2 million.
The fund will enable small businesses to access fixed rate loans of up to £500,000 with no set up fees. Businesses that take out the loan but do not use it will also be able to pay it back without any penalty costs.
NatWest is one of a number of banks that have recently made the decision to extend funding to small businesses. Earlier this month, HSBC and Bibby signed a $150 million funding agreement to enable small businesses across Europe to invest, recruit, and expand.
NatWest Managing Director of Business Banking Marcelino Castrillo said: “With the creation of this £1bn fund we want to assure small businesses that we have funds available and we want to lend.”
Castrillo explained the decision to scrap set up fees and repayments on loans, stating that the company wants to be “easy to do business with” and have “simple and transparent” products.
He added that he hopes this flexibility will give confidence to small businesses that are ready to grow but delaying investment decisions.