NatWest and RBS scrap lending fees to support SMEs
NatWest and Royal Bank of Scotland (RBS) have scrapped lending fees for small businesses. RBS announced last week that small businesses will no longer have to pay arrangement fees and repayment fees on loans.
Businesses will now be able to borrow up to £500,000 and make repayments at any time without having to worry about any penalties.
NatWest and RBS originally scrapped arrangement fees on small business loans last year and have now made the decision to also remove early repayment fees in order to provide small businesses with more flexibility.
NatWest Managing Director of Business Banking, Marcelino Castrillo, commented on the decision, stating that the bank is aware that businesses want “greater control” over their finances, and that if a company’s situation changes and they are in a position to be able to pay off a loan, then they should be provided with the flexibility to do so without incurring penalties.
He added that the company wants its products to be “simple, transparent and worry-free” to enable its customers to focus on their business.
Forum of Private Business Chief Executive, Ian Cass, welcomed the move by NatWest to scrap fees on loans for small businesses.
“Transparency of bank loan costs is something that we have been lobbying for and this move not only achieves this, but also provides additional flexibility for those businesses who choose to repay a loan early or move to another provider,” he said.
NatWest is also aiming to help small businesses by creating a team of “Business Growth Enablers” across the country to enable businesses to receive guidance and develop skills. Businesses will have access to education events and receive advice on topics such as cybersecurity and importing and exporting.