RBS' SME customers 'can retain services'

17/08/2010

The 250,000 small and medium-sized enterprise (SME) customers using the Royal Bank of Scotland (RBS) will still retain non-banking services despite the sale of the bank to Santander.

According to RBS, the customers will be able to retain any existing invoice finance, currency hedging, credit cards and leasing services even after the bank transfers to Santander's power, reports the Daily Telegraph.

The bank plans to contact all its retail and business customers informing them of the plans to sell RBS to the bank which owns Abbey National as part of a deal with the European Commission to acquire state aid.

In around a year or so the transfer will take place but the bank has pre-emptively sent out letters to its SME customers.

The letter, signed by Ian Cowie, the chief executive of RBS Business and Commercial, said: "RBS Group can continue to provide you with other products and services, such as leasing and hire purchase from Lombard, invoice finance, interest rate and currency hedging, as well as credit cards and investment products," the news provider reported.

Recently, the Federation of Small Businesses said it was important for the relationship between banks and small businesses to be restored and confidence reaffirmed.

Posted by Nicola Richards