RBS adds subsidiary-owned Esme Loans to list of alternative finance providers

Esme Loans, the digital lending platform owned and backed by Royal Bank of Scotland subsidiary, NatWest, is to join the group of alternative finance firms on the Edinburgh-based bank’s Capital Connections panel.

Launched at the beginning of 2017, Esme offers UK-based SME customers a simplified, rapid and paperless end-to-end process with competitive rates that allows small and medium sized businesses to quickly obtain unsecured loans of up to £150,000,

Esme was borne out of the bank’s commitment to investing in innovation and technology to become a faster, easier and simpler bank that’s service-led and customer-focused. Among its features are:

The Royal Bank of Scotland set up Capital Connections in 2016 to help SMEs access alternative sources of capital after being unable to secure traditional financial backing. The bank signposts business customers to the panel of innovative sources of finance including equity crowdfunding and marketplace lenders. There is no commission paid to the Royal Bank of Scotland as a result of any referrals, ensuring maximum transparency and no conflict of interest.

Alison Rose, CEO of Commercial and Private Banking at the Royal Bank of Scotland, said: “We are excited to welcome Esme Loans to Capital Connections. Esme offers customers a quick decision and almost instant funding, providing another distinct choice for the many innovative businesses in the UK. As the biggest supporter of British business, we understand that traditional funding routes are not always the best option for fast growing start ups. Through Capital Connections we’re able to signpost a broad choice of funding options through its impressive range of alternative lenders.”

Richard Kerton, Head of Esme Loans, said: “Since we launched Esme Loans last year, we have seen very positive early results – attracting almost £130m worth of businesses while receiving great customer feedback. With more than 5.5m SMEs in the UK, they are truly at the heart of the UK economy. By joining Capital Connections we hope to be able to work with even more businesses and support their growth.”

Esme is the eighth alternative finance provider to join Capital Connections, alongside Funding Circle, Assetz Capital, Start Up Loans, Seedrs, Together, iwoca and the Royal Bank of Scotland Social & Community Capital.

RBS said each provider has been selected to cover the range of different funding products and include a mix of specialty finance and peer-to-peer lending. Customers can choose to contact any of the funders directly or be referred to a provider on the Capital Connections panel by their relationship manager.