Business Loans

NatWest business loans & finance product reviews 2020

What to look out for
  • Red Be 100% accurate with your income declaration. If NatWest believe you can't afford the repayments, you may be declined.
  • Amber Have a good look over your credit file and important details and fix any discrepancies before applying to avoid issues with your application
  • Green NatWest offer fixed rate small business loans up-to £50,000

NatWest business loans and commercial finance products are some of the best around, but what can the small business owner actually apply for and what type of finance would suit them best, and what can you do if you're declined!?

NatWest business loans - where it began...

NatWest (official name - National Westminster Bank) are probably one of the most well known retail and commercial banks in the UK and have certainly been around for a long time. NatWest came into existence with the merging of 2 separate banks back in 1968.  These were - National Provincial Bank and Westminster Bank.  This merger was the beginning of NatWest bank as we know it today.  After the 'ring-fencing' of the banks' core domestic business, they became part of the Royal Bank of Scotland (RBS) group back in the year 2000.  NatWest provide business loans and finance from £1000 up to £50,000 at a fixed rate.

Who can get a NatWest commercial loan or finance?

NatWest offer various business loans and business finance options to suit a range of different profiles and scenarios.  You don't always have to go with the traditional business bank loan. Some other business finance options provided by NatWest include the following:

NatWest business credit cards

NatWest have a range of business credit cards on offer.  With certain business credit cards, a small business owner could earn rewards or cash back on business purchases.  For example; the NatWest Business credit card you get 56 days interest free credit on purchases and 25% off your first £200 spent via Amazon Business.  (Valid until 31st of March 2020)

NatWest also have on offer the NatWest Business Plus credit card.  With this credit card you could earn up to £400 cash-back per year on eligible business purchases.  This is made up of a 2% return from business and trade suppliers, 1% cash-back on business accommodation and fuel costs and 0.5% on anything else!  That's a pretty good return if you are a business owner who uses their credit card a lot!  Bear in mind that there is an annual fee of £70 per card holder.

NatWest business overdraft

NatWest offer a great overdraft facility for the business owner.  With the NatWest business overdraft you will only pay interest on the amount you borrow.  This could be up to £50,000 unsecured but will obviously be subject to credit approval.  The major benefit of having the business overdraft facility is that it covers your business against the unexpected bills that may roll in. There's also no set amount to pay back each month out of the amount you borrow.  

NatWest asset finance

NatWest have recently started offering an asset finance product for business owners of all sizes.  To service these clients they have teamed up with Lombard

NatWest Asset Finance can cover the costs of machinery, vehicles and all sorts of equipment that you may need for the day to day running of your business.  Often the upfront cost of such items can be too much to bare.  With NatWest Asset Finance you can spread the cost of your items across an agreed term and then pay a larger, but manageable final sum at the end.


How to get a NatWest Business Loan

All of these loans require some form of credit check and this will largely determine the interest rate that is re-payable on the loan.  In the majority of cases, if you have a lower credit score, this means that you will pay a higher rate of interest on your business loan.  This is due to the risk that lending to you poses.  This risk level is calculated based on your previous credit history.  Therefore, if you have late or missed payments noted on your credit file this will be taken into account when your NatWest business loan is being underwritten.  


Credit checks for NatWest commercial loans

If you want to ensure you get accepted for a NatWest commercial loan it might be best to sign up to some credit referencing sites such as Experian, or Clear score. These sites will provide you with all the info you need regarding your credit history.  They also have some really useful guides when it comes to removing any negative history, or how to build up a more positive credit score.  There are specific kinds of credit cards that are designed for improving your score.  Before you apply for a NatWest commercial loan its definitely a good idea to try and improve your credit score as much as you can beforehand.  

Another way to improve your chances of being accepted for a commercial loan is to ensure that your personal details and business details are as closely matched as possible.  It's important for you to check Companies House and update any discrepancies before you apply.  This kind of general data health check is a good idea to carry out from time to time anyway, but it is especially important before applying for any business finance or loan products.  

Also pay close attention to your income declarations and the details you tell NatWest need to match up with the details that are displaying on Companies House or via your bank statements.  Paying attention to the above points will improve your chances of being accepted for a NatWest Business Loan.


NatWest startup business loans

NatWest business loans aren't only for established businesses.  NatWest have a great track record when it comes to helping startups and new ventures.  To be considered for a startup business loan you will need a solid business plan in place which clearly outlines all of the revenue streams and expenses that your business will encounter.  

NatWest also offer a very robust Entrepreneur Accelerator programme. They don't charge for this service and can offer some really great advice and discounted services for your new venture.

You should be set up on companies house as a director and you will be required to have a business bank account in place for the funds to be paid into.  

Keep in mind that if you are accepted for a business loan that you may be required to provide security or a directors guarantee against the lending.  This is to secure the loan in case your business is unable to repay the debt.  You need to think about this carefully when applying for any form of credit or business finance.


NatWest business loan calculator and representative examples

When you're applying for business loans it's always really helpful to look at some lending examples so you can envision how your own borrowing may look.  Try to budget accordingly for the monthly repayments and make sure that you can always cover them from your income each month.  The last thing you want to do is miss a loan repayment as this will not look good on your credit file and will affect any future funding that you need to acquire.

NatWest offer a small business loan service with a fixed rate of income anywhere from £1000 - £25,000.  

They [NatWest] also offer larger amounts of up-to £50,000 but you will need to fall into the maximum business turnover brackets.  Make sure you check these before applying to ensure you're accepted for the right type of loan.  

Although the below tables are only examples, NatWest claim that 82% of their SME customers received a final quote that was either the same as their indicative one or better!  However, in no instance was their quote over 10% of their initial indication.  

Below are 3x representative examples of the small business loans you could receive from them:

Borrowing £5000 over 12 months:

Representative example of business loan - £5k / 12months 
Term of loan

12 Months

Monthly repayments

£ 439.63

Interest rate % (fixed)


Representative APR (variable)

10.49% APR

Total amount repayable 

£ 5,275.51


Borrowing £5000 over 18 months:

Representative example of business loan - £5k / 18months 
Term of loan

12 months

Monthly repayments

£ 300.33

Interest rate % (fixed)


Representative APR (variable)

10.49% APR

Total amount repayable 

£ 5,405.97


Borrowing £10,000 over 12 months: 

Representative example of business loan - £10k / 12months 
Term of loan

12 months

Monthly repayments

£ 879.25

Interest rate % (fixed)


Representative APR (variable)

10.49% APR

Total amount repayable 

£ 10,551.02


Borrowing £25,000 over 36 months:

Representative example of business loan - £25k / 36months 
Term of loan

12 months

Monthly repayments

£ 799.19

Interest rate % (fixed)


Representative APR (variable)

9.77% APR

Total repayment

£ 28,770.79


What happens if you're declined a NatWest loan?

Inevitably, not everyone will be accepted for a business loan.  Whilst researching this review we discovered that NatWest actually has an extremely good acceptance rate and they claim that even if you have a slightly worse credit history than normal, you could still get accepted for one of their business loans.   However, if you are declined for a NatWest business loan you will be asked if you would like to be referred as part of something called The Bank Referral Scheme.

If you still feel that your declined loan has been incorrectly determined, then NatWest do have an appeals process you can follow.  You will need to start this process by visiting your local branch and requesting the full process information.  You can find details of this process & your branch here


Alternatives to NatWest business loans - When you've been declined...

Alternative Business Funding are one of 3 designated alternative finance platforms.  We have been designated by Her Majesty's Treasury and The British Business Bank to handle any loan applications that are declined by the business owners bank.  This process is called The Bank Referral Scheme   The scheme ensures that any business owner who has been declined their loan gets free access to any number of alternative financing options.  This is where we (ABF) come in.


We look at your information and run it through our intelligent algorithm and provide you with a full list of alternative funders who are matched perfectly to your business profile.

NatWest really do offer some fantastic business loan products, and you can find them listed as one of our funders on our platform, however if you find yourself declined for a NatWest business loan, we would be more than happy to look at your application again.

Register your details today and compare the NatWest finance products against over 100 other funders!  Let us match you to your ideal finance product and get you the funds you need to keep your business growing!

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