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Best UK Banks for Small Businesses

Best UK Banks for Small Businesses

Every business owner needs as much resources and support to grow and thrive and there is no better place to turn to for assistance than their bank. Choosing the right bank that offers favorable terms in relation to interest rates, the convenience of banking, repayment mode, processing speed, and has great customer support and service can be a tedious task yet it’s vital to the success of your business. Fortunately below is a business banking comparison list of some of the best banks in the United Kingdom that have been widely voted as the best when it comes to serving small businesses. All these banks below have one thing in common, free banking accounts.

Santander Bank

This is one of the best banks for small business in the United Kingdom. It’s great for a quick short term and long term financing as businesses can borrow between £500 – £25,000 if they need a cash flow. The repayment period is between 1-5 years and fixed rates apply which is normally between 7%-12% p.a for such business loans. A business could also be investing in equipment’s, and the bank can as well finance them with an option of low fixed monthly repayments. And the best part about the bank is you can apply for loans online or even with your phone as they have business internet banking option.

Cooperative Bank

The cooperative bank is another bank that caters the needs of startup and small business in the United Kingdom. If your business requires borrowing cash over the short term, the bank offers a fixed rate loan and an overdraft to businesses. A small business can borrow between  £2,500 to £25,000 which is repayable over a period of 1-5 years. The best part about the bank is they can offer loans which are unsecured to businesses and all they ask is 1% of the loan amount as arrangement fees. If a business requires an overdraft, they can borrow up to £250,000 and again they can be unsecured. The cooperative bank offers businesses fixed interest rates, fixed monthly installments and loans can be repaid between 1- 5 year. To be eligible to borrow all you need is a business current account with them, have a running business, a resident in the UK, and you’re over 18 years.

Metro Bank

This is a bank that loves to nurture small businesses with support whether they require short-term cash flow, long-term cash flow, buying more equipment and buying business property to thrive and expand. They offer small businesses loans and overdrafts that range from £2,000 to £25,000 with a fixed and variable rate. Repayments of loans and overdrafts are over a period of 1-5 years, and there is no arrangement fees. All you require to qualify is a Metro Bank Business bank account, community current account or a current commercial account. Sometimes they will ask you for the security of the loans and other times they might not.

Royal Bank of Scotland RBS

At RBS you will get a startup and a small financing business package that is meant for businesses that have been trading for less than a year and have an annual turnover of less than one million. You can borrow a loan that ranges between £500 -£25,000 which is repayable over a period of 1-5 years. You can as well go for fee-free overdraft which is up to £250,000.your also entitled as a small business free banking accounts, and they do have business internet banking. To be eligible as a small business your required to be a resident in the UK, your age is over 18 years, You have a business current account with the, and your address must be in UK, Gibraltar, Channel Islands and your also registered as a tax payer. Truly this is one of the best banks for small business.

To owners of small businesses in the UK, the choice of the bank they choose is a vital component which determines their success. A bank can be the bridge between growth and thriving of any particular business. These banks that have been listed above in this banking comparison are the best lenders that offer excellent financial services to small businesses in the United Kingdom.

See also: 10 Steps To Starting A UK Business

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