4R Blog

RSS Feed

RBS unveils business lending pledge

Date Added: 04/11/2011  

RBS has revealed a pledge to increase the amount of money it approves via business lending over the course of the next few months.

The bank stated that it wants to boost lending to small businesses by 15 per cent, while it also pledged to end early repayment penalties, cut upfront fees and reduce rates.

Gordon Merrylees, managing director of RBS Business Banking in Scotland, explained a "circuit breaker" is needed in order to improve the business lending situation and stated that is what RBS is looking to achieve through the initiative, which will aid the financial institution to hit the targets set by the Project Merlin scheme relating to loans to companies.

The UK's major banks all agreed to sign up to Project Merlin as part of a deal with the coalition government soon after the Conservative-Liberal Democrat alliance came to power last year.

"We've set an ambitious target of 15 per cent in the next three months and we're backing it up with our best ever offer to small firms," said Mr Merrylees.

RBS claims that under the terms of the new business lending agreement it has launched, a firm that borrows £75,000 over the course of a three-year period will save as much as 60 per cent.

Mike Conroy, senior manager of commercial banking at the Bank of England, recently hailed the importance of firms preparing their business lending applications carefully if they want to get the green light.

He stated that a lot of companies do not really know how to approach an application for a loan from a bank and as a result do not even mention how much money they would like to borrow.

Speaking to This is Money, Mr Conroy said despite this, around 80 per cent of business lending applications are thought to be successful.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback