The Royal Bank of Scotland has said it will aim to boost small business lending by at least 15 percent in three months as part of a drive to get behind the economic recovery.
The Royal Bank of Scotland (RBS) has said it will aim to boost small business lending by at least 15 percent in three months as part of a drive to get behind the economic recovery.
It will make what it says is its best ever offer to small business customers – no upfront fees or early repayment charges and a low fixed rate.
The offer comes at a time when there are fears that the economic recovery is stalling and small businesses have increasing concerns about growing in the face of significant uncertainty.
Chris Sullivan, chief executive of RBS corporate division says, ‘A circuit breaker is needed to restore confidence for small businesses; that’s what RBS is hoping to provide.
‘We've set an ambitious target of 15 percent in the next three months, and we’re backing it up with our best ever offer to small firms.’
RBS will need to lend an additional 10 per cent to recover the costs of the initiative.
The offer, to RBS and NatWest customers, will save around a quarter of the cost of fixed rate loans up to £250,000, in many cases more, says the bank.
The loan is available for a trial period of three months for loans from £25,001 up to £250,000.
Other features include no upfront payment of a fee to set up the loan, resulting in a discount of up to 1.5 per cent, and no early break fees.
See also: Bank meeting to boost lending