NatWest Review

NatWest is a well-known bank that offers business loans to UK applicants. Whilst the bank offers versatile lending options, businesses that are rejected may be left unsure as to their next steps. We’ve created a full overview of NatWest’s lending options to help you understand what’s on offer and what options are available if you’ve been rejected or want to refinance. 

NatWest is one of the UK’s big banking establishments, frequently placing in the top 5 in terms of its customer base. For business lending, however, the lender faces stiff competition from the rising popularity of alternative finance providers. 

As a business owner, deciding whether to pursue a loan with a mainstream bank like NatWest is a case of understanding loan types, eligibility and the specific rates and terms associated with your finance agreement. 

On this page, you’ll find a full overview of NatWest’s business lending options to help you make up your mind. Whether you’re applying for finance for the first time, looking to refinance an existing loan or you’ve been rejected by NatWest and you’re looking for alternatives, this page will help you understand more about this lender and how it makes decisions. 

If you’re short on time, however, you can contact Rangewell direct and we’ll help you over the phone. Our finance experts are not affiliated with any bank and are instead focused on helping you secure the best loan for your needs – all at no cost to you. If you’re debating NatWest or an alternative, call us today and we’ll listen to your requirements and then help secure the best possible loan for your needs

What is NatWest? 

NatWest is a bank that serves both personal and business customers. For business customers, the bank acts as a lender – offering a variety of loans to SMES that come with fairly generous interest rates and low fees. 

However, as with all mainstream banks, eligibility criteria may be stricter than alternative lenders and many businesses are outright rejected when applying for a loan. In addition, most financial products from NatWest require that you are a business banking customer.

What types of loans does NatWest offer?

As with most large banks, there are a wide variety of financial products on offer depending on your business and your requirements. Generally speaking, NatWest offers a named ‘Small Business Loan’ product and then more customisable fixed and variable rate interest loans. 

For loans dealing with the acquisition of property, NatWest also provides commercial mortgages and real estate investment finance – making it a suitable lender to approach if you’re considering purchasing your business’ freehold. 

Loan types include:

Small business loans 

NatWest’s small business loan is a named product that covers lending between £1000 and £50,000. Spread across 1-7 years, the small business loan comes with a representative rate of 12.35% APR variable – making it a stable and relatively affordable loan for most businesses. 

However, as with any commercial loan, it pays to shop around. If you think a small business loan like this is ideal for your company, contact Rangewell first so we can make sure it’s the right choice for you. 

Fixed and variable rate loans 

General business loans from NatWest are either offered as fixed or variable interest rate products. Fixed rate interest loans tend to be more stable but are more expensive, whereas variable rates can often be cheaper but more prone to market volatility. 

These loan types are when the size of a bank like NatWest becomes apparent – the fixed interest rate loan can be up to £10m and the variable options carries no maximum lending limit. Variable loans can be spread across 25 years, whereas fixed rates are more limited to 3, 5, 7, 10 or 15 years. 

Commercial mortgages & real estate finance

Need to purchase property for your business? A commercial mortgage allows you to borrow from £25,001 with no upper limit on a fixed rate and £10m on a variable rate. Spread across 1 to 25 years, commercial mortgages tend to require that you have a large amount of capital to use as a deposit. many businesses do not have, and therefore face being rejected. 

For landlords looking to expand property portfolios, real estate finance options from NatWest may be ideal. These loans are customised to your needs but are generally for borrowing of £50,000 or more spread across terms of up to 20 years. 

Asset finance

If you want to buy equipment or machinery for your business, you can often take out a loan secured against the value of the item you want to buy. NatWest offers this type of arrangement, known as asset finance, through a third party provider, Lombard. 

If you’re interested, visit our asset finance page to learn more about how it works and which providers may be right for you.

Are you eligible for a loan from NatWest?

NatWest expects that loan applicants are business banking customers, though you may also be able to apply if you hold a business account with another high street bank. Eligibility differs depending on loan types and will often be subject to enquiry. 

For a general idea of what is required, we’ve taken the eligibility criteria from the small business loan product. If you meet these minimum criteria, you can apply for the small business loan – though other types of loan may have tighter restrictions and ask for businesses with more trading history or turnover thresholds, etc. 

• Be aged 18 or over
• Be a named director of the business you’re applying for
• Hold a business account with any high street bank
• Have no record of CCJs or bankruptcy on your personal or business credit history
• Need the loan for business use

As with any loan application, you’ll need to meet these criteria as a minimum and then supply additional information during the process. Depending on the loan you’re applying for and the amount of credit you need, you’ll likely need to supply different levels of documentation and personal or director’s guarantees. 

What information do you need to provide? 

Each type of loan NatWest offers will have different requirements when you apply. For standard small business loans, the evidence you need to supply will be minimal – especially if you’re an existing NatWest customer. This is because most decisions are made based on your businesses’ financial performance and banking history, so if you’re an existing customer the bank can make a decision without asking for any external evidence. 

If you apply for a loan and you’re not an existing customer, you may need to submit bank statements covering periods between 3-6 months and your latest set of accounts. 

Does NatWest offer secured or unsecured lending?

NatWest offers both secured and unsecured lending through different products. The fixed small business loan is an unsecured loan, whereas other flexible finance products may require security in the form of assets owned by private individuals or the business. 

What are the rates and terms? 

The rates and terms available from NatWest depend on your loan choice. The standard Small Business Loan product has a fixed interest rate of 11.70% at a representative APR of 12.35%. 

The more customisable fixed and variable rate interest loans available from NatWest come with interest rates that are bespoke to your application. 

The fixed rate product can be taken out in periods of 3, 5, 7, 10 or 15 years – each of which will change the rate offered. The longer your loan term, the cheaper your monthly payments though you’ll end up paying more over the full term. 

Variable loan interest rates are set above the NatWest Bank base rate and can be taken our for periods between 3 months and 25 years. 

The biggest issue for NatWest’s business loan offering is that the standard Small Business Loan is only offered for a maximum term of 7 years, which may not suit your needs. To extend the term to the more customary 10 years, you’ll need to negotiate with the bank. 

Want better rates or different terms? 

If you’re not interest in NatWest’s interest rates or terms and want to find something more suitable for your business and your goals, speak to Rangewell. We can help you find alternative providers or even renegotiate with NatWest on your behalf. 

What are the fees and charges?

NatWest’s most appealing feature is the low costs associated with the loan offers. There are no arrangement fees or early repayment fees on Small Business Loans, which can represent a considerable bump to your cashflow. 

How do I apply?

Applications for NatWest are extremely fast thanks to a refined online application process. The branch claims it can make near-instant decisions on lending. If you want to apply for the Small Business Loan, you can check your eligibility on this page by inputting the amount you want to borrow and what terms you prefer then clicking the ‘check eligibility now’ button.

If you’d rather apply for the fixed or variable loans from NatWest, you can enquire online or speak to a team member over the phone. Alternatively, speak to Rangewell before you apply and we can help manage the application for you to increase your chances of success. 

What if you’ve been rejected by NatWest?

NatWest, like any mainstream bank, may turn you down if you don’t suit certain criteria for borrowing. Don’t be put off if that is the case – there are alternatives that can still offer you the credit you need to fund your business’ goals. 

Talk to our team here at Rangewell if you’ve been turned away by NatWest. We can discuss your background and your application, review your existing circumstances and your future plans and then help direct you to either a different lender or even resubmit a new application to NatWest.

Want to refinance your NatWest loan? 

If you’ve already got a NatWest business loan, refinancing may be the perfect option for you. Refinancing a loan involves another provider ‘buying’ your credit, which in turn allows you to renegotiate a new loan with your new lender – whether that’s to increase the amount you’re borrowing, extend the terms or manage monthly repayments. 

Before you approach NatWest to discuss an existing loan, speak to our refinancing experts today and we’ll help you find the best options with a completely lender-agnostic approach. 

Need more funding? 

If you’re a small business, your borrowing options from mainstream banks are limited. NatWest may be offering lots of small, relatively simple loan products to SMES – but only at a low credit limit. To fund more ambitious goals, you’ll need higher credit maximums. 

We can help you find lenders willing to finance you with far greater amounts of money – whilst also managing your negotiations and agreement to ensure you’re not stuck with unaffordable repayments. Choose Rangewell to be your finance expert and get the finance you need to help your business succeed. Call us today.