NatWest and RBS make further commitments to support SMEs
NatWest and RBS have announced new measures to increase support for their 1.2m business customers with the introduction of a new SME customer charter. Whilst providing new ways of offering support, the charter also extends existing key initiatives already helping customers sustain and grow their business.
Peter Ibbetson, Chairman, Small Business, said: "Throughout the year we have been listening to our customers to understand the issues from their side. Whilst we've led the field with a series of initiatives supporting them through the key stages of a recession, it's important we stay close to their needs and find new ways to support their growth in the months ahead."
New SME charter commitments - the first formal charter issued by NatWest and RBS, and one that will evolve in line with customer needs. As part of a wider organisational commitment to openness and transparency, customers and key industry bodies will be consulted on commitments within the charter, ensuring key issues continue to be addressed. Progress against these commitments will be reported on a regular basis.
Renewal of price promise and committed overdraft - Over the past twelve months NatWest and RBS have introduced a series of successful initiatives to help businesses trade through the various stages of the recession. Early on when businesses feared credit would be pulled, or rates increased, NatWest and RBS were the first to offer a combination of a committed 12 month overdraft and a price promise. A year on and 9 out of 10 small businesses have had their overdraft facilities renewed at the same, or lower, rate. After such a positive impact, the new NatWest and RBS charter includes a renewal of this unique promise for a further year to all SMEs.
Fees capped per annum - To help stimulate demand and continued business growth, the NatWest and RBS charter sets out to reassure businesses they can access lending on fair terms, making the total year's costs clear to customers at the outset. From today, NatWest and RBS will become the first banks to introduce a 1.5% cap on overdraft and loan arrangement fees per annum, for businesses with a turnover up to £25m.
New support for start-ups - Recognising the need to encourage greater entrepreneurship levels in an economic downturn, NatWest and RBS have responded by helping more new businesses get off the ground than any other bank. The banks are presently supporting over 2,000 start-ups per week, which exceed levels seen in 2008. To build on this success, NatWest's market leading start-up offer of two years free banking will now be extended to RBS customers as part of the Bank's new SME charter.
Peter Ibbetson, Chairman, Small Business, said: "Access to finance at fair prices sits at the top of many business' wish list, which is why we are extending our overdraft price promise and offering reassurance and transparency on the fees we charge. At the same time it's equally important we do all we can to help develop new businesses by extending our free banking offer.
Access to finance will remain core to NatWest and RBS' commitments to business customers, as they have throughout the year. NatWest and RBS have lent £60bn to SMEs over the last two years and have led the way on EFG lending from the outset, providing a vital £250m cashflow injection to over 2,000 businesses (nearly as much as the rest of the industry put together).
Stephen Alambritis, Head of Public Affairs, FSB: "We welcome this charter from NatWest and RBS. Businesses need to know that their credit lines are safe and how much they will cost. Commitments to guarantee overdrafts, the price promise, the cap on annual fees and the commitments to transparency are a real help. We want these commitments to make a real difference to the small business sector"
Russell Griggs, CBI SME Council Chairman, said "This is a welcome move by RBS and NatWest. Greater transparency on the cost of finance is critical to allow business to plan for the future. Providing free banking for startups is a welcome boost to the many budding entrepreneurs who will play a vital part in the future growth of the UK economy."