Turned down by NatWest? Business loan alternatives

What business lending NatWest offers

NatWest publishes a broad business lending range, and much of it is delivered by different parts of the same group. On its own website it lists the products below. We've left out rates and fees because they change and depend on your circumstances; NatWest's own pages have the current details.

NatWest says all its lending is for business use, applications are subject to status, and fees, security, guarantees or indemnities may apply depending on the product.

NatWest's invoice finance has published turnover thresholds (£300k for invoice discounting, £6.5m for asset-based lending), so smaller invoicing businesses may need to look elsewhere for that product.

We're not part of NatWest

Nexgen Business Finance is an independent credit broker. We're not part of NatWest Group, we're not connected to or endorsed by NatWest, Royal Bank of Scotland, Ulster Bank or Lombard, and we can't make or influence their lending decisions. This page explains publicly available information so you can make an informed choice, including going back to NatWest directly if that suits you best.

Why a bank may say no

We can't tell you why NatWest declined a particular application; only NatWest can. In general, the British Business Bank lists a low credit score, a lack of collateral, a weak business plan and poor cash flow forecasts among the common reasons banks refuse business loans, and says start-ups can also be declined for a short track record, no assets or not yet being profitable.

NatWest explains on its own commercial lending pages that it assesses eligibility on the credit history of the individual, business owners or directors, and that it may decline where it believes you can't afford the repayments. It gives a practical example: if the income you declare is noticeably higher than the money going through your NatWest account, the application may be referred or declined. It also suggests making sure your details match what NatWest holds and what's filed at Companies House before you apply.

Those tips are worth following wherever you apply next. Inconsistent figures slow things down with any lender.

NatWest's appeal route and the Bank Referral Scheme

Appeals. NatWest says you can appeal a declined borrowing request, or an approval where you feel conditions were unfairly applied, within 30 calendar days of the decision. Its published criteria include annual turnover up to £25m and not being subject to formal demand or recovery action, and appeals about pricing or standard terms are excluded. NatWest says appeals go to an independent appeals team that wasn't involved in the original decision.

Referrals. HM Treasury's Notice of Designation lists the Royal Bank of Scotland Group, renamed NatWest Group plc in July 2020, as a designated bank. HM Treasury's information sheet names National Westminster Bank, The Royal Bank of Scotland, Ulster Bank, Lombard and RBS Invoice Finance among the group's finance providers. That means if one of them turns down an eligible application, it must offer to pass your details, with your consent, to the government-designated finance platforms, which try to match you with other providers.

The British Business Bank sets out who is eligible: businesses with turnover up to £25m and a UK address applying for loans, overdrafts, invoice finance, asset finance (excluding operating leases) or credit cards. Referrals aren't offered for facilities under £1,000, for less than 30 days, or where you turned down an offer purely on price.

A referral or appeal doesn't stop you speaking to a broker or another lender at the same time. The British Business Bank confirms you can approach platforms, brokers and finance providers yourself.

Alternatives to a NatWest business loan

Which route fits depends on why you were declined and what you need the money for. These are the options we look at most often:

• Unsecured business loans from other lenders. Specialist and online lenders set their own criteria. A personal guarantee is usually required. See unsecured business loans.
• Secured business loans. Borrowing against commercial or residential property can open up larger amounts or longer terms. Your property may be repossessed if repayments aren't kept up. See secured business loans.
• Asset finance from another funder. If Lombard said no to a vehicle or machinery deal, other asset finance providers weigh the asset differently. See asset finance.
• Asset refinance. Raise cash against equipment or vehicles you already own, even some that are still on finance. The asset can be repossessed if repayments are missed. See asset refinance and sale and leaseback.
• Invoice finance. If you invoice other businesses but sit below NatWest's published turnover thresholds, other invoice finance providers may still help. See invoice finance.
• The Growth Guarantee Scheme. A government guarantee scheme delivered only through accredited lenders, which still make their own decisions. NatWest, Royal Bank of Scotland and Ulster Bank (Northern Ireland) appear on the British Business Bank's accredited lender list, and so do other banks and specialist lenders. See our Growth Guarantee Scheme guide.
• Community Development Finance Institutions. The British Business Bank describes CDFIs as non-profit, relationship-based lenders that generally lend £25,000 to £250,000 and may help where others have declined. Security and personal guarantees may still be requested.

How a broker can help after a NatWest decision

Because NatWest's group covers loans, mortgages, asset finance and invoice finance, a decline can feel like the whole high street has said no. It hasn't. Different lenders have different appetites for sector, size, security and credit history.

We're a credit broker, not a lender. We'll ask what NatWest told you, look at your accounts, assets and existing borrowing, and tell you honestly which routes are realistic. We start with a conversation and indicative quotes rather than sending your details to every lender, so you avoid a string of credit searches. If going back to NatWest with an appeal looks like your best option, we'll say so. Our guide on whether to use a broker or your bank explains the trade-offs, and how brokers get paid covers commission.

Call our team on 01604 355800 or send an enquiry and we'll come back to you.