Fixed Rate Loans
If you are intending to borrow money and are concerned that general interest rates may rise during your loan repayment period it could make sense to take a fixed rate loan. The stability offered by a fixed rate loan can help with cashflow planning.
Fixed Flat Rate Business Loan
Our Royal Bank Business Loan is ideally suited to assist smaller businesses with their cashflow planning.
Repayment amounts and dates are fixed at the outset
Minimum terms six months, maximum term 10 years
Minimum amount £1,000, maximum £25,000
Sterling Fixed Rate Loans
A fixed rate loan for virtually any capital expenditure offers complete protection against interest rates rising for up to 10 years, allowing you to more accurately plan your finances.
Repayments can be structured to suit your business' needs
Maximum total loan term of 25 years, with interest rate fixed between 1& 10 years, renegotiated at the end of the fixed period
Bullet repayment and capital repayment holiday options available
Minimum amount £26,000, no maximum
NB: There may be a substantial charge to pay if you choose to repay this type of loan before the end of the agreed period. We recommend that you seek legal advice before entering into such an agreement.
Variable Rate Loans
A Flexible Business Loan can be arranged for virtually any type of capital expenditure:
If the Royal Bank’s Base Lending Rate falls, you can benefit from lower repayments
Repayments can be structured to suit your business needs
You can repay the loan in full at any time without incurring any penalty costs
Maximum term 25 years
Minimum loan amount £10,000. No maximum amount
To give you even more flexibility we also offer the following options:
Low Start: Pay only 30% of the standard repayment amount for the first 6 months, then 60% for the next 6 months. Full repayment only begins in the second year of the loan.
Capital Repayment Holiday: Subject to agreement at the outset, suspend capital repayment for up to three years at the start of the loan.
Capital & Interest Repayment Holiday: Make no repayments of capital or interest during the first 12 months. Interest is added to the loan and capital and interest repayments begin after 12 months.
Repayment Frequency:choose from monthly, quarterly, half yearly or annual payments.
Stage drawdowns: draw the loan in up to three stages and save on initial interest costs.
Lump sum payments: pay in lump sums without penalty (subject to a minimum of £1000) and choose to either repay your loan early or reduce the amount of your loan repayments.
Bullet Repayment: pay interest only during the term of the loan. Repay one capital repayment at the end of the term. Capped Rate Loan
capped rate loan for virtually any capital expenditure
Your interest rate will not rise above a certain level for the capped period which can be for up to 5 years
If the Royal Bank's Base Lending Rate falls, you can benefit from lower repayments
Repayments can be structured to suit your business's needs
Bullet repayment and capital repayment holiday options available
Minimum amount £26,000, no maximum Small Firms Loan Guarantee Scheme
The Small Firms Loan Guarantee Scheme (SFLGS) is a government scheme, operated in conjunction with the Department of Trade and Industry, that enables us to finance business propositions that would not normally qualify for conventional finance, often because of a lack of available security or track record.
Features
Loans drawn under the scheme may be between £5,000 and £250,000.
Scheme funds may be used to provide working capital or for capital expenditure.
Repayment can be arranged for periods of between 2 and 10 years.
Base-related and fixed interest rates are available.
A capital repayment holiday of up to 24 months is permitted.
Capital repayments can be made monthly or quarterly to suit your cashflow.
Drawdown in stages is permitted on facilities over £30,000.
Small Firms Training Loan Scheme
What is it ?
A joint venture between the Department for Education and Employment (DfEE) and UK banks. Loans of between £500 and £125,000 are available to firms to pay for and encourage training within the business.
Who is eligible ?
Any sole trader, partnership, co-operative, franchise or limited company which is already trading or about to start trading and who have less than 50 employees.
What training is covered ?
An SFTL loan can be used to pay for any education or training course which will benefit the business whether it is full-time, part-time, open or distance learning. Funding is also available for initial consultancy costs relating to training.
Benefits of the scheme ?
The main benefit of the scheme is that the customer receives a Repayment Holiday at the beginning of the loan. During the period no capital or interest payments are due from the borrower while the government pays the interest on the loan direct to the bank.
Loan Amount Length of Holiday
£500 to £7,000 6 months
£7,001 to £15,000 9 months
£15,001 to £125,000 12 months
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