The Start-up Loans Company becomes latest alternative finance firm to joins forces with RBS

The Start Up Loans Company has become the latest alternative finance firm to strike a partnership with Royal Bank of Scotland and Nat West’s programme designed to help businesses access alternative sources of finance.

RBS’s Capital Connections initiative helps SMEs access capital after being unable to secure traditional financial backing, with no commission paid as a result of any referrals.

The scheme was first announced in January 2015, with Funding Circle and Assetz Capital becoming its first partners.

RBS said the move meant it could refer customers who don’t fall within the banks “current risk appetite”.

The Edinburgh-based lender has since expanded the Capital Connections panel to include small business working capital provider iwoca, RBS Social and Community Capital, which specialises in social enterprise and charity lending, Together and, more recently, Seedrs.

The latest inclusion sees The Start Up Loans Company become the first government-backed finance provider to join Capital Connections.

Since launching in 2012, it has lent £318m to help more than 48,000 individuals fund their early-stage businesses, creating more than 56,000 jobs.

Interim CEO Joanna Hill said: “Start-ups often bring something fresh and innovative to an existing market, but they are often left at the back of the queue when it comes to accessing finance. We’re looking forward to partnering with NatWest and Royal Bank of Scotland to give people a second opportunity to achieve their business goals.”

Alison Rose, CEO of Commercial and Private Banking at NatWest and Royal Bank of Scotland, added: “We are excited to announce that The Start Up Loans Company will be joining our Capital Connections programme. We are the biggest supporter of British businesses and in 2016 we lent almost £9bn to commercial companies and £1.6bn SMEs, an increase of 43% from the previous year.

“But it won’t always be possible for us to support all our customers with our own capital and it’s important that in these instances we do the right thing by helping them access other finance options. That’s why our Capital Connections programme is so important to supporting British businesses, enhancing their access to the borrowing which is essential for jobs and economic growth.”