October 23, 2025

Lender Comparisons

Compare Aldermore Bank vs Natwest Rates

Compare Aldermore Bank and Natwest for mortgages and loans. Discover the best interest rates, customer service, and application processes.

Jesse Spence

Finance content writer / Market researcher

Aldermore Bank vs NatWest: Which Lender Is Right for Your UK Business?

This guide compares Aldermore Bank and NatWest for small and mid-sized UK businesses. We look at products, costs, speed, and eligibility. The two banks serve different needs, so the best fit depends on what you are financing and how fast you need funds. With interest rates and cash flow pressures in 2025, it pays to understand the trade‑offs before you apply.

TL;DR

NatWest offers quick online unsecured business loans from £1,000 to £100,000 with fixed rates and same‑day funding for eligible customers.
Aldermore focuses on structured facilities such as asset finance, invoice finance, and commercial mortgages.
Invoice finance with both banks can advance up to ~90% of invoice value; Aldermore highlights funds within 24 hours of invoice submission.
Choose NatWest for speed and smaller, fixed‑term borrowing; choose Aldermore for larger assets, property, or working capital tied to invoices.
Pricing structures differ: NatWest loans use APR; invoice finance uses a service fee plus discount margin over base rate.

Products and Terms at a Glance

Aldermore Bank overview, loan sizes, fees, repayment style, terms, eligibility

Aldermore is a specialist lender. It focuses on facilities that match assets or receivables rather than general purpose unsecured loans. Core products include asset finance (hire purchase and leasing), invoice finance (discounting and factoring), and commercial mortgages. Aldermore’s invoice finance can advance up to 90% of invoice value, with funds typically available within 24 hours of submission, and costs agreed up‑front; an arrangement fee usually applies. Source: Aldermore invoice discounting and invoice finance pages.

Invoice finance eligibility usually requires a trading B2B business that invoices on credit; Aldermore indicates a typical minimum annual turnover of about £750,000 for invoice finance applicants. Source: Aldermore invoice finance overview.

For property transactions, Aldermore provides commercial mortgages, with recent criteria indicating minimum terms from 2 to 3 years depending on fixed or variable, repayment options including interest‑only, part & part, and capital & interest, and debt service cover tests. Source: Aldermore commercial mortgage criteria guide.

Assumptions noted: Aldermore does not publish a standard unsecured SME term‑loan range. Where exact APRs or fees are not listed publicly, we explain pricing structure and use realistic examples for illustration.

Pros of Aldermore

Strong for asset finance with hire purchase and leasing options aligned to equipment life.
Invoice finance advances up to around 90% with funds typically within 24 hours after invoice submission, supporting cash flow against receivables.
Commercial mortgage expertise with flexible repayment types and both fixed and variable options.
Relationship‑led approach and bespoke structuring for complex needs.

Cons of Aldermore

Usually not a fit for small, quick term loans without assets or invoices.
Invoice finance typically suits businesses with £750k+ turnover; micro‑SMEs may not qualify.
Arrangement fees and service charges can add to the total cost, which varies by facility set‑up and usage.

NatWest overview, loan sizes, fees, repayment style, terms, eligibility

NatWest offers online small business loans from £1,000 to £100,000, with fixed interest, terms from 1 to 7 years, and no arrangement or early repayment fees. Eligible existing customers who are accepted and sign by 16:30 Monday to Friday can receive funds the same day. Source: NatWest Small Business Loan page.

For asset purchases, NatWest Group’s asset finance is provided via Lombard, widely described as the UK’s largest asset finance provider. Source: NatWest Asset Finance page (Lombard).

NatWest also provides invoice finance through RBS Invoice Finance, with advances typically up to 90% of eligible invoices and costs made up of a service charge plus a discounting charge based on usage and base rate. Source: NatWest invoice finance and invoice discounting pages.

Pros of NatWest

Fast online journey for smaller unsecured business loans with same‑day funding for eligible customers.
Transparent loan terms with fixed repayments over 1 to 7 years.
Access to Lombard for asset finance and RBSIF for invoice finance.
No arrangement or early repayment fees on the Small Business Loan product at the time of writing.

Cons of NatWest

Loan limit for the online Small Business Loan tops out at £100,000; larger needs require relationship‑managed routes.
Eligibility and pricing vary by customer status; non‑customers may face a longer journey.
Invoice finance costs include both a service fee and a discount margin over base, which can rise when base rates increase.

Costs and Repayments in Practice

NatWest’s Small Business Loan is priced on an APR basis. The site shows a representative APR for illustration. Repayments are fixed for the loan term. Source: NatWest Business Loans & Finance overview and Small Business Loan pages.

Aldermore’s invoice finance and factoring use a fee‑plus‑margin structure rather than APR. The total cost is the sum of a service charge (often a percentage of turnover or funded value) and a discount charge (a margin over the bank base rate applied to the amount drawn, for the time it is drawn). Aldermore highlights that charges are agreed up‑front and that up to 90% of invoice value may be advanced, typically available within 24 hours of invoice submission. Source: Aldermore invoice discounting and brochure.

Feature	NatWest Small Business Loan	Aldermore Invoice Finance
Typical facility size	£1,000 – £100,000 (online)	Linked to sales ledger; advances up to ~90% of invoice value
Pricing model	APR with fixed monthly repayments	Service fee + discount margin over base rate
Fees	No arrangement or early repayment fees (per product page)	Arrangement fee usually applies; other fees set out in facility offer and client guide
Speed to funds	Same‑day possible for eligible existing customers who sign by 16:30 on working days	Funds within ~24 hours of invoice submission
Security	Personal or director guarantee may be required	Debenture over receivables common; may include security and bad‑debt protection options

Worked example: NatWest Small Business Loan

Assume you borrow £50,000 over 5 years at a representative 12.24% APR with fixed monthly repayments. Using standard amortisation, the monthly payment would be around £1,116 and the total repayable about £66,960. This creates a predictable cash outflow of roughly £1.1k per month. Illustrative example using the representative APR shown on the NatWest site; exact rate depends on your circumstances.

Worked example: Aldermore Invoice Finance

Assume you raise a £50,000 invoice, Aldermore advances 90% (£45,000) within 24 hours. You draw the full £45,000 for 45 days until your customer pays. Suppose a 2.0% service fee per annum on invoice value (calculated pro‑rata on usage) and a 3.0% discount margin over base, with base at 5.25% (illustrative). The discount rate would be 8.25% per annum on funds in use.

Service fee cost (pro‑rata for 45 days on £50,000): about £123.
Discount cost (8.25% per annum on £45,000 for 45 days): about £456.
Total cost for this invoice cycle: ~£579, net cash advance £45,000, balance released on customer payment.

These figures are assumptions to illustrate how the fee‑plus‑margin model works. Actual pricing is agreed case‑by‑case. Aldermore confirms charges are set out up‑front and that advances can be up to 90% with funds typically within 24 hours of submission.

Speed or structure? Aldermore vs NatWest for 2025 cash decisions

This dashboard compares NatWest’s unsecured loans with Aldermore’s receivables and asset backed routes. Read left to right. Bars show ranges; dots mark typical points. Use it to weigh speed, amounts, terms, and true cost today. If your need is small and urgent, NatWest fits. If you match assets or invoices, Aldermore gives structure and scale.

Bars show minimum to maximum pricing. The dot marks a typical rate. NatWest uses fixed APRs, so the band is tight here. Aldermore invoice finance shows a discount rate over base, so the range reflects margin and usage. Pricing moves with credit strength, sector risk, security, and term. A 1% rate gap on £100,000 over 5 years changes monthly by about and total interest by about . Prioritise a lower typical when you hold for years; accept a wider range when use is short and flexible.

NatWest’s unsecured online loans run from £1,000 to £100,000. Aldermore’s usable draw is tied to invoices; we model 90% of a £20,000–£300,000 invoice band to show what you might access per invoice. Unsecured suits fit out, marketing, and stock pilots. Larger advances fit capex and rolling working capital once a ledger is in place. Bigger, fixed facilities may be arranged for assets or property when scale matters. Affordability and security set the real ceiling, not the headline max.

NatWest fixes terms from 1 to 7 years. Aldermore invoice finance revolves with funds in use for about 30–60 days per invoice, shown in years for comparison. Longer terms cut the monthly cost but raise total interest. At £50,000, 3 years versus 6 years changes monthly to about vs and adds roughly of interest over the longer run. Longer suits seasonal cash flow or growth plans; shorter suits quick payback projects.

Each bar shows midpoint days from application to decision and decision to funds. We also plot the fastest path. NatWest can be same day for eligible customers. Aldermore invoice finance funds within about 24 hours of invoice submission once live; initial approval can take longer. If payroll is due in 5 days, the faster route is safer. Fast paths assume clean files and quick signatures.

We show application and late payment fees where published. NatWest’s example shows £0 for application; Aldermore’s invoice finance typically prices via service and discount charges, so application here is shown as £0 and arrangement is shown separately. Legal costs, valuations, and security fees are not in these bars. £150 fee on a £20,000 loan adds 0.75% to day one cost. Compare fees with rate and term together, not in isolation.

Arrangement is calculated on the principal. It may be deducted upfront or added to balance depending on the product. We show 0% for NatWest’s online loan and 1.5% for an illustrated Aldermore facility. 1.5% on £250,000 equals . A higher fee with a lower rate can still win on long terms. Check early settlement rules before you sign.

Scores map booleans to 1, count integrations, and rate UX 1–5. Open banking speeds underwriting. Accounting links and APIs help multi account firms. Mobile apps support approvals on the go. Busy owners and groups gain most from strong digital rails. Faster data means faster reconciliations.

Stars sit on the left axis; NPS is on the right. Higher review counts give steadier signals. Branch and case experiences can differ, so read recent comments. Match themes to your needs, such as speed, document asks, and portal ease. Use ratings as one input, not the whole story.

Speed and Service

NatWest emphasises a fast online process for existing customers. If you apply online and are unconditionally accepted, funds can be received the same day when documents are signed by 16:30 Monday to Friday. Decisions and next steps are confirmed by the bank, with formal decision letters when applications are not completed face‑to‑face. Source: NatWest Small Business Loan page; NatWest “how we make a decision” page.

Aldermore’s invoice finance focuses on rapid access to working capital once set up, with typical availability of funds within 24 hours of invoice submission. For property lending, Aldermore publishes current service level commitments for intermediary cases such as decisions in principle within 48 hours; timescales for business cases can vary by product and complexity. Source: Aldermore invoice discounting and service levels page.

Who Each Lender Suits

Typical scenario for Aldermore

A growing manufacturer invoices wholesalers on 30–60 day terms and needs to smooth cash flow as order volumes increase. Aldermore’s invoice finance lets the firm draw up to ~90% of each invoice within a day, then release the balance when customers pay. For equipment purchases, Aldermore’s asset finance aligns repayments with the useful life of the kit, preserving working capital.

A property investor or owner‑occupier needing a commercial mortgage can also benefit from Aldermore’s flexible terms and repayment styles.

Typical scenario for NatWest

A services SME needs £30,000 to refurbish premises and expand a team. NatWest’s online unsecured business loan provides a fixed monthly repayment over 3–5 years, with no arrangement fee and same‑day funding if eligible. If the firm later needs vehicles or equipment, it can consider Lombard asset finance. For late‑paying customers, NatWest’s invoice finance route can unlock up to ~90% of receivables.

How to Apply

Application steps and documentation required for each lender

NatWest Small Business Loan. Complete the online application, confirm business details, specify the amount and term, and consent to credit checks. Existing customers may receive a quick decision and, if accepted, funds on the same day after e‑signing by 16:30 on working days. Be ready with recent bank statements, filed accounts or management figures, and details of any existing borrowing. A personal or director guarantee may be required. Source: NatWest Small Business Loan and Business Loans & Finance pages.

Aldermore Invoice Finance. Enquire via Aldermore’s team. Provide details of customer concentrations, typical payment terms, aged debtor analysis, sample invoices, and contracts. Aldermore will structure the facility, agree service and discount charges, and outline security, reporting and any bad‑debt protection options. Advances of up to ~90% may be available with funds typically accessible within 24 hours of invoice submission once the facility is live. Source: Aldermore invoice discounting pages and general conditions.

Commercial Mortgages (Aldermore). Expect to provide property details, leases or owner‑occupier trading accounts, assets and liabilities, and serviceability information. Terms can be fixed or variable with repayment types from interest‑only to capital & interest, within published criteria. Source: Aldermore commercial mortgage criteria guide.

Final Verdict: Which Lender Fits Your Business Best

Choose Aldermore if…

You need working capital against invoices with advances up to ~90% and quick access after submission.
You are financing equipment and want hire purchase or leasing tailored to asset life.
You require a commercial mortgage with flexible repayment types.
Your turnover is £750k+ and your customers buy on credit terms.
You value a relationship‑led, bespoke facility with transparent, agreed‑up‑front charges.

Choose NatWest if…

You want a fast, fixed‑term unsecured business loan of £1,000–£100,000.
Same‑day funding matters and you bank with NatWest already.
You prefer predictable monthly repayments over 1–7 years with no arrangement or early repayment fees.
You may also need asset finance (via Lombard) or invoice finance under the NatWest Group umbrella.
You want a single banking relationship for accounts, loans, and working capital tools.

If you are unsure which route fits best, compare the shape of cash flows: fixed monthly repayments from a loan versus variable costs tied to usage for invoice finance. Align the facility with how your business earns and collects cash.

Ready to compare options with a specialist? Speak to Funding Agent or start an application via our enquiry form.

Sources

NatWest Small Business Loan: amounts, terms, fees, and same‑day funding windows NatWest Business Loans & Finance overview (representative APR and guarantees)NatWest Invoice Finance overview (provided by RBS Invoice Finance)NatWest Invoice Discounting (cost components and up to 90% advance)NatWest Asset Finance (Lombard as UK’s largest asset finance provider)Aldermore Invoice Discounting (up to 90% advance; funds within 24 hours; charges agreed up‑front)Aldermore Invoice Finance overview (eligibility and typical turnover guidance)Aldermore Invoice Discounting brochure (summary of features)Aldermore Commercial Mortgages (product overview)Aldermore Commercial Mortgage Lending Criteria (terms, LTV guidance, and repayment types)Aldermore published service levels (e.g., decisions in principle timelines)Aldermore Asset Finance overview (HP and leasing)

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FAQs

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