Esme Business Loans

If you are researching Esme Loans because you have seen old reviews or marketing about their unsecured business loans, it is important to know that Esme is now closed to new applications. They were a NatWest-owned digital lender that offered fast, fully online business loans with fixed monthly repayments. This review explains how Esme Loans worked, what their business loan product looked like, and, crucially, what your options are now via brokers like Funding Agent.

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Esme Loans business loan at a glance

Esme Loans was a digital-only lender under the NatWest Group umbrella. Its single core product was an unsecured business term loan with fixed interest and fixed monthly repayments. While you can no longer apply for a new Esme business loan, understanding the product structure is useful if you are an existing customer or comparing like-for-like alternatives via Funding Agent.

The historic product details and servicing information were set out on Esme Loans' official website, which now primarily supports existing customers rather than new applicants.

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How Esme Loans' Business Loan actually worked in practice

When Esme Loans was active, its pitch was simple: a straightforward unsecured business loan, delivered via a fully digital application journey, backed by NatWest. Rather than visiting a branch or posting documents, business owners could check eligibility, see example repayments and complete the full journey online.

The process typically started on the main Esme Loans website, where you could use an on-site calculator to choose a loan amount and term. You would then complete an application form covering basic business details, ownership, trading history, turnover and the purpose of the loan. Esme used credit bureau data, open banking and uploaded documents (such as bank statements and accounts) to assess affordability and risk.

For eligible businesses, Esme would generate one or more loan offers which you could review online. Each offer set out the loan amount, term, fixed interest rate, monthly repayment and total amount repayable. If you accepted, you would e-sign the loan agreement and personal guarantee. Funds could then be paid to your business bank account on the same day, sometimes within an hour.

Repayments were taken by monthly direct debit over the agreed term. Because the interest rate was fixed, the repayment amount was the same every month, making it easier to plan cash flow. There were usually no early repayment charges, so many businesses chose to pay down the balance faster once cash flow improved, without any extra fees.

Today, you cannot start this journey as a new customer. However, existing borrowers still log in via the Esme dashboard on esmeloans.com to see balances and manage their loan, while new borrowers looking for something similar will need to consider other Unsecured Business Loans from alternative lenders.

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Rates, fees and what this Business Loan really cost

Esme Loans priced its business loans using a fixed, risk-based interest rate. That meant you paid a set percentage per year on the outstanding balance, and your monthly repayments were fixed for the entire term. There were no ongoing arrangement fees built into the product and, in most cases, no early repayment charges either.

In broad terms, stronger businesses with good credit, solid profitability and lower leverage tended to receive lower rates, while higher-risk profiles saw higher pricing. Because the loan was unsecured and backed by a personal guarantee rather than a property charge, rates were usually higher than a secured bank loan, but often competitive with other online lenders in the same space.

For example, imagine a limited company borrowing £80,000 over 4 years at a fixed interest rate. The loan would be repaid in 48 equal monthly instalments. The total cost of borrowing would be the interest charged over those 4 years, but you could reduce this total by making partial or full overpayments, as Esme generally did not charge for early repayment.

To compare what an Esme-style loan might look like against current lenders, it is helpful to model scenarios with a Business Loan Calculator or, if you are more focused on day-to-day cash flow, a Working Capital Loan Calculator. Funding Agent can then line up any quotes you receive from live lenders next to what a legacy Esme deal might have looked like in terms of total cost and repayment profile.

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Eligibility, who Esme Loans was a good fit for

Esme Loans was positioned between traditional banks and alternative lenders: more flexible and faster than a high street bank, but still focused on established, creditworthy SMEs. While exact criteria evolved over time, there were clear patterns in which businesses Esme targeted.

• Trading history: Limited companies typically needed at least 18–36 months of trading history, with filed accounts and bank statements showing a consistent track record.
• Turnover and profitability: Minimum annual turnover thresholds applied, and Esme tended to prefer businesses that could evidence profitability or a clear path to sustainable cash flow.
• Business structure: UK limited companies and, later, some sole traders and partnerships. Businesses needed to be registered and operating in the UK.
• Credit profile: Directors and the business needed a generally clean credit history. Adverse credit such as recent CCJs, defaults or insolvency events could be a barrier.
• Sectors: Mainstream sectors such as professional services, retail, hospitality and light manufacturing were common, while some higher-risk or heavily regulated sectors were restricted.
• Personal guarantees: At least one director or owner typically had to provide a personal guarantee as additional comfort for the lender.

If your business would have fit that profile, you are likely to qualify for similar products from other online lenders today. If you are earlier stage, asset-light or have a thinner credit file, Funding Agent can also help you consider options such as Unsecured Working Capital Loan products designed with slightly more flexibility.

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Pros, cons and when Esme Loans is a useful comparison point

Even though Esme Loans is no longer open to new customers, it remains a helpful benchmark when you are evaluating other unsecured Business Loans. Understanding where it sat on the spectrum can clarify whether new offers you see are cheap, average or expensive.

Pros

• Fast, digital journey: Fully online application with quick decisions, which many lenders now emulate.
• Transparent fixed pricing: Clear fixed rates, fixed terms and no early repayment fees on most loans.
• Unsecured: No charge over property or assets, making it accessible for asset-light businesses.
• Backed by a major bank: Esme was owned by NatWest, which reassured some borrowers compared with lesser-known fintechs.

Cons

• Now closed to new borrowers: You can no longer take out a new Esme business loan; you must use alternative lenders.
• Stricter eligibility than some fintechs: The focus on profitable, established businesses meant many start-ups were excluded.
• Unsecured pricing: Rates, while competitive in the unsecured space, were usually higher than secured bank lending.
• Personal guarantees required: Directors were normally personally on the hook if the business could not repay.

Best for (as a benchmark today)

• Owners comparing offers: If a new lender's product looks materially more expensive or restrictive than Esme's historic terms, it may be worth shopping around.
• Existing Esme borrowers: Those looking to refinance an existing Esme loan into a cheaper or more flexible facility with another lender.
• SMEs wanting unsecured funding: Businesses that like the idea of the old Esme proposition can ask Funding Agent to find current lenders with similar fixed-rate, unsecured loans.

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Real world examples of how SMEs used Esme's Business Loan

These simplified scenarios show how UK SMEs typically used Esme-style unsecured business loans when the lender was active.

Example 1: Professional services firm hiring a new team
A small accountancy practice with three years of trading and £400,000 turnover borrowed £60,000 over 4 years to hire two additional staff and invest in software licences. Fixed monthly repayments made it easy to budget, and when revenue grew faster than expected, the partners made overpayments to clear the balance early without extra fees.

Example 2: Retailer funding a store refit
An independent fashion retailer took a £40,000 loan over 3 years to refit their high-street store and boost stock levels before peak season. The unsecured structure meant they did not need to secure the loan on their premises. Once trading improved, they refinanced to a lower-rate facility to reduce their ongoing cost of borrowing.

Example 3: Manufacturing business smoothing working capital
A light manufacturing company with regular orders but long payment terms used a £100,000 Esme loan over 5 years to smooth working capital and invest in a new machine. The predictable repayment schedule helped them manage cash flow around customer payment cycles, and the lack of early repayment charges allowed them to reduce the balance after a particularly strong trading year.

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How Funding Agent can help you compare Esme Loans against other lenders

With Esme Loans closed to new applications, the real question for most SMEs is which lenders now occupy a similar space in the market. That is where Funding Agent comes in. We work with a panel of banks, specialist lenders and fintechs that still offer unsecured term loans, revolving credit and working capital products for UK businesses.

Our job is to translate features like fixed rates, personal guarantees and early repayment options into plain English and to compare them against what you might have seen from Esme in the past. We can also help existing Esme borrowers explore refinancing options if you want to reduce monthly costs or access additional capital.

If you want a deeper dive into the lender's story, performance and customer feedback, you can read our dedicated Esme Loans Reviews guide.

If you want to see how Esme-style funding stacks up today, compare business finance options with Funding Agent before you sign.

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Alternatives to Esme Loans' Business Loan

Since Esme Loans is no longer writing new business, you will need to consider live alternatives. The right option depends on whether you prioritise speed, flexibility, maximum loan size or lowest overall cost.

• Unsecured Business Loans: Many modern lenders now offer fixed-term, unsecured loans that look very similar to Esme's historic product. You can explore this route via Unsecured Business Loans, which cover a range of providers and credit profiles.
• General business loans: If you want more choice of structures and terms, it is worth looking at the broader Business Loans market, including banks, challenger banks and specialist non-bank lenders.
• Working capital facilities: For short-term cash flow support, an Unsecured Working Capital Loan or revolving credit facility may be more appropriate than a long-term term loan.
• Refinancing your existing loan: If you have an existing Esme loan, you may be able to refinance into a cheaper or more flexible facility. Use a Business Loan Calculator to model potential savings.
• Blending facilities: Some SMEs combine a core term loan with overdrafts, invoice finance or other flexible tools to build a funding mix that fits their growth plans and risk appetite.

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