RBS Cuts Interest Rates for Small Business

The Royal Bank of Scotland (RBS) has announced that it is using the Bank of England’s Funding for Lending Scheme (FLS) to reduce interest rates for small businesses. The £140 million Funding for Lending, Bank of England and Treasury backed, scheme offers money to the high street banks at a lower rate of interest that can then be passed on to business customers. RBS has said it will cut borrowing costs by 1% on average and by up to 1.6% for some of the smallest businesses. In addition, the bank will be removing arrangement fees on £2.5 billion of new loans to small firms. Looking at an average £100,000 business loan, the saving will be around £4,000 – made up of a £1,500 arrangement fee and £2,500 in interest. This could amount to an estimated... »

Bank Fund Offers £100m to Franchise Start-ups

Would-be business owners seeking finance to become franchisees can apply for a dedicated bank loan, following the launch of a £100-million fund. The joint NatWest and RBS fund is aiming to finance up to 1,800 new franchise businesses and 24,000 new jobs (based on typical start-up costs and franchisees typically employing around 13 staff). “The [franchise] industry has shown itself to be virtually recession proof, so for the many people left out of work by the recession franchising is a great way to start up a business.” said NatWest and RBS chairman of small business, Peter Ibbetson. British Finance Association director general, Brian Smart, added: “The fund is a great way of encouraging new entrants into this vibrant sector. The UK franchise industry has performed well i... »