NatWest will give small business customers access to loans of up to £250,000 within 24 hours of applying as it responds to growing competition from alternative lenders.
Britain’s largest business bank, which has 1.5 million business customers, has run a trial of an online accelerated credit approval process for unsecured loans to existing customers of up to £50,000 and is now comfortable with the risk of lending larger amounts at short notice.
Robert Begbie, chief executive of NatWest’s commercial banking division, said: “We are conscious that dealing with banks is not the day job for small companies; banks should just be there for them when they need it.”
Speaking in The Times, he said that the pilot for same-day lending had “gone extremely well", adding: "we are looking to extend it up to £250,000. It will bring a wider range of customers into the ability to access finance quickly, at a time of their choosing.”
A NatWest spokesman said the maximum loan size would be raised first to £100,000 in the coming months, before reaching £250,000, probably by the end of the year. The bank estimates that its new lending to small firms will increase by 30% as a result.