NatWest has increased its support for SMEs by eliminating both set up and early repayment fees on its loans for small business. Businesses can now borrow up to £500,000 and repay at any time without incurring any penalties.
Marcelino Castrillo, managing director of business banking at NatWest, said: “We know that businesses want greater control of their finances.
“If a company’s circumstances change and they are in a position to pay off an existing loan, we absolutely believe they should have the flexibility to do so without incurring penalties.
“We want our products to be simple, transparent and worry-free to enable our customers to focus on their business.”
Ian Cass, chief executive of the Forum of Private Business, said: “The Forum of Private Business welcomes the initiative by NatWest to remove fees on its loans for small business.
“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.”
Mike Cherry, policy director at the Federation of Small Businesses, said: “FSB is encouraged by this move from NatWest. Our members seek the total removal of unfair fees, and we hope this will now prevent smaller firms being penalised just as they need support to succeed.
“FSB backs the Business Banking Insight (BBI), an online tool to help small businesses identify which banks best meet their needs, based on feedback from other small firms. Initiatives like this will boost feedback, helping other small firms decide which is the best banking option for them.”