Starling Bank has boosted its business products by introducing a range of new features to its business accounts.
The bank is now offering businesses and sole traders unsecured loans of up to £250,000, an increase in its overdraft limits from £10,000 to £150,000 and more competitive overdraft rates, along with a custom-built tax and financial management Toolkit.
The new unsecured loans are available on terms from one to five years, and are available to limited companies that have been trading for at least 18 months on application direct to the bank. The interest rate offered is based on an assessment of the business and the representative APR is 7% (fixed) for loans up to £25,000, while the rates on loans above this are provided upon application.
Starling Bank has increased its overdraft limit from £10,000 to £150,000 and replaced its flat rate of 15% EAR (variable) with a rate of 5%, 10% or 15% EAR (variable). The rate offered will be based on an assessment of the individual business. The representative EAR is 10% (variable) and customers pay an annual fee of 1.5% (minimum fee £50) on any agreed overdraft limit, charge at initial set up.
As well as this, while its accounts for limited businesses and sole traders will remain free, it is also introducing an optional paid-for Business Toolkit account. With this paid account, business owners will be able to access additional tools to track invoices, monitor cash flow, keep track of how much tax and VAT they owe, and submit VAT returns through HMRC Making Tax Digital-compliant software.
Anne Boden, founder and chief executive of Starling Bank, said: “Life as a small business owner can be a bit of a balancing act and time is often in short supply. We’ve built a range of new features in the Business Toolkit to help save entrepreneurs time and money, while at the same time cutting down on paperwork and hassle.
“Our loans and overdrafts will be particularly helpful for businesses that rely on working capital, but may have gaps in their cash flow across the month or for a period of months.
“We now have nearly 100,000 business accounts. Our improved lending facilities and our first premium accounts show that Starling really does mean business when it comes to business accounts.”