NatWest is wooing small business owners with a new deal that it claims is the best on the market from a high-street bank.
As of yesterday, start-ups can sign up for two years free banking, alongside free face-to-face advice from in-branch business advisors.
The deal, which NatWest says responds to the financial worries of start-ups, comes with a free £500 overdraft and a business credit card for the first year.
Account holders are also offered business planning software, two months’ free marketing support, plus a Mentor service, including advice on employment law, at a discounted rate.
Announcing the deal, NatWest said it had deployed an extra 500 business bank managers to give start-ups advice on managing cashflow, planning, risk management and marketing.
It has been born out of research from the bank showing four in ten would-be entrepreneurs ditch their plans to run their own business because of financial uncertainty.
In fact, a third said cashflow was the biggest problem, while more than a quarter said they were put off by a lack of funding, the research found.
To be eligible, start-ups must have been trading for up to 12 months, and turnover should be under £1m, according to the terms and conditions.
In addition, although the £500 overdraft is initially without fees, in year two start-ups must pay £50 to renew the limit, with a fixed interest rate of 9.99%.
NatWest’s new deal for small firms comes as the Competition Commission is about to consider a review of competition in SME banking by the Office of Fair Trading.
Jul 11, 2007
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