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RBS helping small businesses

Royal Bank of Scotland (RBS) says it is making life easier for the UK's small businesses by capping arrangement fees for loans and overdrafts, at 1.5 per cent.

The bank, which has been criticised in the past for failing to provide the credit agreed in return for taxpayer support, says it will provide the preferential terms for at least 12 months, to businesses with turnover below £25 million.

Last month, RBS admitted to falling behind on its commercial lending targets.

The FSB has urged banks for more help to support what they describe as the 'backbone of the countries economy' get through these tough financial times.

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