NatWest Rapid Cash is a business loan product in the UK that allows businesses to borrow against their unpaid invoices. Businesses can get a line of credit from £25,000 to £1 million. It is likely to be cheaper compared to invoice factoring and more flexible compared to a loan. Rapid Cash loan for business requires security and guarantee.
What’s Special About NatWest Rapid Cash Financing
- Unlocks capital. Rapid Cash unlocks the capital in your unpaid invoices.
- Fast. You could be approved in 48 hours and then receive the funds just two hours later.
- Simple. You just need to integrate your accounting software to NatWest and they will assess if your business qualifies for this kind of funding. No extra paperwork or legal work.
- Flexible. Only pay for what you borrow for limits of £300k or less. For limits over £300k there is an annual facility fee of 1.5% of the limit.
Eligibility Criteria for NatWest Business Loan
To qualify for a NatWest invoice finance, your business needs to have met the following requirements.
- Have been trading for the last 6 months
- Have a minimum annual turnover of £100,000.
- Must be a Limited Company or Limited Liability Partnership registered in the UK
- You invoice other businesses
- You must use Rapid Cash supported accounting software: Sage 50, Sage Business Cloud, Xero, Quickbooks Online, (Oracle) Netsuite, KashFlow or FreeAgent.
- Security in the form of a business debenture and a personal guarantee for 10% of your maximum borrowing limit.
How to Apply for NatWest Rapid Cash
To apply for NatWest Rapid Cash business financing, you first need to check your business eligibility. If your business meets the eligibility requirements, you can get a quote. To get a quote, you only need to connect your accounting package to the NatWest platform.
After that, you need to upload your business documents. You will also need to connect your business accounts to NatWest, after that, you can wait for a call from the NatWest team. They will do a credit assessment to check if your business is creditworthy, they will call you within 48 hours and take you through the remaining process.
Once the loan is approved, you will need to finish setting up your account. Then choose the customers to borrow against and then you will have funds deposited into your account. For Rapid Cash repayment, your nominated customers will pay into your Rapid Cash account, which the company will set up in the name of your business. The money deposited will reduce your existing balance.
Is Rapid Cash invoice factoring? Rapid Cash isn’t factoring. Typically a factoring provider will purchase your invoices and take over collections. Therefore your customers will be aware that you’re using a factoring service as they’ll be in direct contact with them. Rapid Cash is fully confidential – we stay in the background, you remain in charge of collections and your customers pay into a different account, which we set up for you.
NatWest Rapid Cash Pricing
You can check how much you will pay using the NatWest business loan calculator on their website. NatWest Rapid Cash has varying prices for business loans of below £300,000 and business loans above £300,000.
For business loans of a limit over £300,000, you will pay an annual facility fee of 1.5% that is payable in monthly arrears. There are no monthly fees or exit fees. If you are borrowing a loan below £300,000, you can expect NatWest business loan rates ranging between 4.5% and 8.5% above its base rate and there are no arrangement fees.
For limits above £300,000, Rapid Cash has interest rates ranging between 1.5% and 6%. Interest rate is calculated daily and billed monthly to your Rapid Cash balance. There is also an annual facility fee of 1.5% which is payable monthly in arrears.
NatWest Rapid Cash Alternatives
You can use the following services as an alternative to NatWest Rapid Cash.
- Market Finance
- Funding Circle
- SME Loans (Invoice factoring)
- Swoop Funding
Summary on NatWest Rapid Cash
NatWest Rapid cash is a quick and fast invoice financing option. You can apply for NatWest Rapid Cash and have cash in your account within a few hours after getting approved. Not much paperwork is needed, you just need to connect your business accounting accounting software like Xero to their platform and then they will assess if your business qualifies for invoice financing.