Natwest Bridging Loans
Similarly, to the majority of high street banks, NatWest stopped offering bridging loans following the 2008 financial crisis. However, those who are seeking the reassurance of dealing with a trusted bank are in luck.
NatWest does operate a specialist lender called Esme Loans.
Founded in 2016, the company has already given over £100m to UK businesses.
Esme’s primary focus is to support SME’s by helping them access business finance quickly.
The digital provider to make the process of attaining funding simple by ensuring a speedy application process and promising that any decision will be made within the hour.
Esme has also committed to not charging for early repayment or arrangement fees.
Does NatWest Offer Any Type Of Bridging Loan?
NatWest does not offer bridging loans in the traditional sense but does offer Home Improvement Loans for their existing customers.
Loans between £7,500 and £19,950 are available at a rate of 3.9% APR. These loans are designed to assist financially with home improvement projects. The bank claims the loan might be available the same day if the application is accepted before 5.45 pm on a weekday.
The maximum and minimum terms are as demonstrated below:
- Loans from £1,000 – £7,450 can be repaid over 2 to 5 years
- Loans from £7,500 – £50,000 can be repaid over 2 years to a decade
In order to apply for this loan, you must fulfil the following criteria.
- You are over the age of 18, a UK resident and a NatWest current account holder (for more than three months)
- You have not been deemed bankrupt in the past 6 years
- You haven’t submitted an application for a personal loan with the bank in the previous 28 days
What Do Esme Offer?
Esme provides unsecured business loans starting at £10,000 up to £250,000, which can be repaid over a 1-5-year period. The company do not charge early repayment or arrangement fees.
According to their website, based on a £10,000 loan to be repaid over two years, a likely customer scenario would be:
Total Cost: £10,989.38
Monthly Payment: £454.1
Interest Rate (Fixed): £898.38
Monthly Rate: 0.70%
Representative APR (Fixed): 8.73%
Business Loans Explained
Specifically designed to suit a business, as opposed to an individual, business loans can assist many businesses that need some extra funds.
These loans enable a business to borrow a quantity of money which can be returned with interest.
There are many options available, short-term products can help carry a business through choppy waters whilst longer-term options can help fund business expansions, for example. Flexible repayment options are sometimes an option, whilst other times lenders will not incur early repayment charges.
Am I Eligible for An Esme Loan?
Esme offer loans to both limited companies as well as independent traders. However, the amount available and the information requested differs between the two.
Limited Company
Esme offers limited companies unsecured loans with a value of £10,000 to £250,000. In order to assist the application, the lender will request some personal details and business information from the lender. The eligibility criteria are as follows:
- The borrower is over 18 years of age and a resident of the United Kingdom
- The company has actively traded for more than 3 years
- Annual turnover is more than £50,000
Sole Trader
Unsecured loans from £25,500 to £250,000 are available to sole traders. The company will request to see some of the applicant’s personal details as well as some information about the business.
Additionally, the lender will be interested in seeing business bank statements. The eligibility criteria as set out by Esme are as follows:
- The borrower is over 18 years of age and a resident of the United Kingdom
- The company has actively traded for more than 3 years
- Annual turnover is more than £50,000
Can You Get Multiple Loans From Esme?
You can get a second loan with Esme. Once you have successfully paid 6 monthly payments in a row on the initial loan, you can apply for a second. The lender only allows a maximum of 2 loans at once.
How Quickly Can I Access The Cash Once Esme has Approved me?
Whenever the lender has the necessary information, the cash will be put into your bank account within an hour.
If applicable to faster payments, the money should be available within the day. Esme insists that the account that money goes into must also be the monthly account payments are charged to.
Will Making An Application With Esme Impact My Credit Score?
Making an application, will not have any effect on your credit score, as the lender does not carry out full credit checks.
Esme state they only carry out a ‘soft credit check’ on those taking out the loan and any business directors mentioned in the application.
Alternatives To Bridging Loans?
A bridge ng loan is a unique finance facility and there are no real alternatives in that sense, but there are similar products such as:
- Development Finance
- Buy to Let Finance
You can also raise the finance through re-mortgaging a property for example. There are also some short term property peer to peer lenders which maybe to consider.
To get a bridging loan contact Property Finance Partners, we have access to the whole market and are able to get the best rates available in today’s market. For more information on this and other property finance products. Call us on 020 3393 9277 or Email: [email protected]
