NatWest has launched a pilot Rapid Cash digitised invoice-finance service as an alternative to traditional overdrafts.
Businesses can borrow up to £300,000 against the value of unpaid invoices once pre-approved. There is no percentage of unpaid invoices a business can borrow against once the facility is in place.
Customers choose how much they want to borrow and for how long, with credit approval within 24 hours of applying; once approved, customers can have funds in their accounts within a few hours. There are no set-up or monthly fees, meaning customers only pay for what they use. And once funds are repaid, customers can draw down against the line of credit again, up to their approved limit.
Rapid Cash connects with accounting software packages including FreeAgent, Xero and Quickbooks. The software was developed in partnership with Australian fintech lender Waddle Loans.
NatWest has been trialling Rapid Cash with a number of the bank’s business customers since the start of 2019, opening it up to all NatWest business customers as of today; the bank plans to make the product available to all UK businesses in the coming weeks.
Paul Thwaite, MD head of sales, specialist businesses and business banking, said: “This is a unique, market leading product which we have built to provide an alternative to a conventional business overdraft. By continuing to enhance the value, speed and choice of the services we offer, we’re aiming to ensure that customers can remain focused on what matters – growing their businesses.”
NatWest has around 800-900,000 customers including clubs and societies, with turnover of anything up to £2m per annum.