firm news

Mark Appleton
Mark Appleton,
PARTNER
more
Are you an SME client of Royal Bank of Scotland?
26 November 2018

Are you an SME client of Royal Bank of Scotland (RBS) with a turnover of less than £20m (and who is not in arrears nor considered in financial difficulty)? The Government was forced to recapitalise RBS to the tune of over £45 billion in 2008. The EU imposed a number of measures on RBS designed to prevent distortions in the marketplace as a result of this state assisted support.

This included measures to promote competition in the SME marketplace by ensuring a reduction in RBS’s market share.

If this applies to you, you may already have been contacted by the Bank confirming that you are being offered an opportunity to re-organise your finances with another bank.

Up to £350m is being offered to eligible bodies comprising other banks in order to incentivise RBS’s Williams & Glyn SME banking customers to switch their borrowing facilities and current accounts to “challenger banks”.

£225m is available as a dowry with an additional £50m available as loan related dowries if an RBS term loan is refinanced. There is an additional £75m to cover switching costs including break costs, third-party fees such as legal and valuation costs.

These incentives will not be paid directly to you the client - but are there to cover your new arrangement fees, legal costs and other expenses that you would incur in refinancing with another bank ordinarily.

There may be various challenger banks potentially bidding for your business offering you their terms of business if you participate in the RBS Business Banking Switch.  These banks will no doubt be pitching for different types of business in different sectors but ultimately these challenger banks are gearing up to take over thousands of clients from RBS.

Offers will go live for eligible customers from 25 February 2019 but some challenger banks are already gearing up for a huge increase in banking activity in the next few months.

If you are an SME and might qualify to participate in the Business Banking Switch Scheme let us know and we would be happy to try and help you in this respect.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

award winning law firm

Boyes Turner are proud to have received the following awards and recognition.

awards