NatWest business loans: rates, fees and who they suit

NatWest has business loans for short- and long-term needs, including its Small Business Loan, which offers £1,000 to £100,000 over one to seven years at a fixed rate, with no set-up or early repayment fees. The bank also offers larger loans (fixed and variable) for longer lending periods, unlocking up to £10m in capital borrowing and terms of up to 25 years.

We outline the main features, costs and eligibility criteria and when NatWest business loans might fit your company's funding needs.

NatWest's own calculator prices smaller loans higher. Its representative APRs run from 11.46% for £50,000 over one to three years to 16.08% for under £5,000 over five to seven years (as of 12 October 2026).

The specific loan details below are sourced from NatWest's website and factsheets. Rates and terms change, so check NatWest's site before you apply.

‍

NatWest's business loans at a glance

NatWest has two main business loan categories: its Small Business Loan plus and Fixed and Variable Rate Loans (starting from £25,001). The bank also offers Growth Guarantee Scheme loans through its relationship managers.

We've put together a handy comparison table to show NatWest's business loans and their main features side by side:

‍

The NatWest Small Business Loan: rates, fees and terms

The Small Business Loan's representative APR is 12.63% for £10,000–£19,999, and NatWest charges no set-up or early repayment fees. You repay capital and interest monthly at a fixed rate. There's no repayment holiday and the money comes in one lump sum.

Your actual rate depends on how much you borrow, for how long and your credit status, so NatWest may offer you a different rate. Its calculator covers loans up to £50,000; for £50,000 to £100,000 you apply online for a personalised quote.

These are the representative APRs the calculator showed on 12 October 2026:

Worked example (our calculation): at the 11.95% fixed interest rate behind the 12.63% APR, a £15,000 loan over five years would cost about £333.29 a month. You'd repay £19,997.27 in total, so £4,997.27 in interest. Your own quote may differ.

Two limits are worth knowing before you apply:

• You can't take a repayment holiday – NatWest says it can't offer payment breaks on Small Business Loans.
• You can't draw the loan in stages (tranches), so you pay interest on the full amount from the start.

You can overpay or clear the loan early at any time without a fee, and your remaining repayments are recalculated.

{{bank-lenders-blog-cta="/seo-components"}}

‍

NatWest fixed and variable rate loans

For borrowing £25,001 or more, NatWest offers Fixed Rate Loans up to £10m and Variable Rate Loans with no upper limit, over up to 25 years. Unlike the Small Business Loan, these can carry arrangement and security fees, and NatWest may take security.

Here's a summary of the key details you need to know:

• Fixed Rate Loan: the rate is a fixed core rate plus a risk margin, fixed for 3, 5, 7, 10 or 15 years.
• Variable Rate Loan: the rate is set above NatWest Bank base rate, so repayments rise and fall with it. Terms run from 3 months, and tranche drawdowns are available subject to approval.
• Repayment options: capital and interest, capital only or interest only, depending on the loan.
• Payment breaks: a capital repayment holiday is available subject to approval, and you keep paying interest. NatWest offers up to 6 months during a Family First event.

Neither loan option states an early repayment fee. NatWest doesn't publish rates or fee levels, as your relationship manager will quote them. If NatWest asks for a loan security, any property or asset you offer can be repossessed if repayments stop.

‍

Growth Guarantee Scheme loans at NatWest

NatWest offers Growth Guarantee Scheme loans of generally up to £2m per business group over 3 months to 6 years, for businesses with turnover up to £45m. Be aware that government guarantee protects NatWest, not you: you stay 100% liable.

The Growth Guarantee Scheme gives NatWest a 70% guarantee on what's left after its normal recovery process. NatWest can still ask for a personal guarantee, but it can't take your main home as security under the scheme.

You can apply through a relationship manager, and NatWest prices each loan individually.

‍

Does NatWest ask for a personal guarantee?

Yes. NatWest's lending FAQs say that if your business is a limited company, it will ask you to provide a personal guarantee, even though its Small Business Loan is unsecured, while the larger Fixed and Variable Loans may also need security over property or assets.

A personal guarantee is your legal commitment to repay the company's debt if the company can't. If your company defaults, NatWest may ask you to pay instead. The bank also says they need to be informed if your circumstances change and you want to be released (say, if you leave the business).

Before you sign any agreement, check whether the guarantee is capped, which directors need to sign and what happens if you resign. At iwoca, we ask for one too. Every new Flexi-Loan needs a personal guarantee from at least one director.

‍

Who can get a NatWest business loan?

To apply for a Small Business Loan you must be 18 or over, a director of the business, free of bankruptcy, CCJs or Court Decrees, and hold a business current account with any bank. NatWest then asks for trading, turnover, profit and existing-borrowing details.

You'll need the following information to hand:

• Your address history for the past three years.
• The date your business started trading.
• Turnover for the last 12 months and projected turnover for the next 12 months.
• Net profit for the last 12 months.
• Details of existing business and personal borrowing.

The bank doesn't state separate eligibility criteria for its larger Fixed and Variable Rate Loan products. However, you'll be asked to provide various details and documentation when you get a quote, which will determine your eligibility.

NatWest may ask for more evidence, such as six months of bank statements if you've only banked with them for a short while. The website recommends the following:

• Keep your details at Companies House up to date.
• Declare income accurately.
• If you tell NatWest your income is £250,000 and it sees £180,000 going through your account, your application may be referred or declined.

NatWest checks the credit history of the business and its directors, so it's worth seeing where you stand first. You can check your business credit score with iwoca Credit Compass. It's free and shows your Equifax business credit score and the main factors affecting it.

‍

How to apply and how long it takes

Existing NatWest customers can log in, get a quote in about three minutes and apply in around 10. New customers can apply online too, and NatWest then gets in touch about next steps. Funds can arrive the same day if you're unconditionally accepted and sign by 16:30 on a weekday.

Here are the main steps to expect:

1. Get a quote. Log in with your Online Banking details for a personalised quote. It doesn't affect your credit score, and NatWest saves it for 30 days.
2. Apply. The application takes around 10 minutes. If you go ahead and consent to a credit check, that check may affect your credit score.
3. Answer any questions. NatWest may pause your application and ask for documents. If its lending team needs to call, it aims to do so within three working days.
4. Sign. You have 28 days to sign the agreement online. Other key principals, such as fellow directors, sign digitally too.

NatWest says approved customers could have the money within 24 hours. Online applications are capped at £100,000. Above that, you'll speak to the NatWest lending team. Fixed and variable loans go through a relationship manager, so expect a longer process.

‍

Does NatWest offer start-up loans?

NatWest doesn't list a separate start-up loan on its business lending pages (checked on 12 October 2026). Its start-up guidance points to loans, grants and investment, and the Small Business Loan application asks when your business started trading.

NatWest's guide on borrowing to start a business says lenders look at personal and business credit scores, financial performance, existing debts and your business plan. If your company is new, our guide to start-up business loans covers the main options and what each one asks for.

‍

Pros and cons of a NatWest business loan

The Small Business Loan's strengths are a published fixed rate, no set-up or early repayment fees and terms up to seven years. The trade-offs are the personal guarantee required for limited companies, no options for payment breaks. You receive funds as one lump sum and access is faster if you already bank with NatWest.

Here's a brief overview of the main benefits and potential drawbacks:

What's good:

• A representative APR published by loan size, so you can compare before applying.
• Fixed monthly repayments for the whole term.
• No set-up, early repayment or early closure fees.
• No need to bank with NatWest (but you may just need a fee-free loan servicing account).
• A quote that doesn't affect your credit score.

What to watch:

• Limited companies are asked for a personal guarantee.
• No repayment holiday and no drawing in stages on the Small Business Loan.
• Smaller loans will cost more: under £5,000, representative APRs start at 15.73%.
• The quickest route (Online Banking login, same-day funds) is for existing customers.
• Above £100,000, or for fixed and variable options, pricing and fees are agreed case by case.

‍

NatWest Small Business Loan vs iwoca Flexi-Loan

So how does NatWest's Small Business Loan compare with one Flexi-Loan solution? Well, they suit slightly different needs. NatWest's loan is usually cheaper for a fixed sum you'll repay over several years. But while the iwoca Flexi-Loan may cost more, it lets you draw what you need at any time, and you'll only pay interest for the days you use it. Plus, you can repay the loan early for free.

Both loan solutions ask a director for a personal guarantee.

Here's a quick-glance comparison:

NatWest figures were checked on natwest.com on 12 October 2026. iwoca figures are correct from our Flexi-Loan page as of the same date.

On a like-for-like £10,000 loan held for a full year, NatWest's published rate is much lower. The gap narrows if you only need the money for a few weeks, because a Flexi-Loan only charges interest for the days you borrow. For a wider view, you can compare bank and alternative lender loans.

‍

When NatWest's loans might be a better choice

A NatWest loan could be right for you if you're borrowing a set amount for a planned purchase and you want the lowest published rate for that size of loan, and you're happy to repay monthly over up to seven years. It's also quicker if you already bank with NatWest.

A five-to-seven-year term also keeps monthly repayments lower than a Flexi-Loan's maximum of five years allows. If your company has steady, predictable cash flow and a clear one-off need, such as equipment or a fit-out, the Small Business Loan is likely to cost less overall.

‍

When a Flexi-Loan may fit better

A Flexi-Loan may be a more suitable option if you need money for a short cash flow gap, want to draw it in stages, or expect to repay early, because you only pay interest for the days you borrow.

That's how Victoria Simpson uses hers. Her care company, VCare Group, waits for local authorities to pay while staff need paying every month. "It might be just a two or three day gap. But when you've got payroll running at that level, two or three days matters."

It can also suit bigger amounts: a Flexi-Loan goes up to £1 million, against £100,000 for NatWest's Small Business Loan. In iwoca's SME Expert Index (May 2025), 67% of the finance brokers surveyed said they recommend alternative lenders to clients for loans over £100,000, compared with 6% who recommend high street banks.

Flexi-Loans are available to UK limited companies, and every new Flexi-Loan needs a personal guarantee from at least one director.

‍

Other NatWest business lending

NatWest also offers business overdrafts, commercial mortgages and invoice finance. Also, you can get asset finance through its subsidiary, Lombard.

NatWest's business overdraft runs from £500 to £50,000 unsecured – see our guide to business overdraft options to compare it with others.

Its commercial mortgage starts at £25,001.

You get invoice finance through RBS Invoice Finance, which can advance up to 90% of your outstanding invoices.

‍

NatWest business loan FAQs

Do I need a NatWest business account to get a NatWest loan?

No. You can bank anywhere and still borrow from NatWest. In some cases it'll open a fee-free loan servicing account just to run your repayments.

‍

Does getting a NatWest quote affect my credit score?

No. An indicative quote doesn't affect your credit score. If you go on to complete an application and agree to a credit check, the outcome may affect it.

‍

Does NatWest take a debenture?

NatWest's pages don't mention debentures. They say the Small Business Loan is unsecured and that security may be required on fixed and variable loans, so ask what security is being taken before you sign.

‍

What can I do if NatWest declines my application?

NatWest says you have the right to query and appeal a declined decision, and it explains how on its appeals page.