This document summarizes a Royal Bank of Scotland event for local businesses on accessing financing for growth. It discusses statements of appetite, which express a willingness to lend up to £500k based on business information. Good news stories are shared of customers who received funding after obtaining statements of appetite. The importance of assumptions to support financial projections for loan applications is also covered. A variety of the bank's financing products are briefly described, including asset finance, invoice finance, regulatory compliance services, and entrepreneurship support programs.

1. Statements of Appetite
How we are giving confidence to local businesses to support them
in growing and achieving their ambitions.
The Where, When and How to Finance Business Growth.
Accelerate Ayrshire Event @ Gailes Hotel, Irvine. Thursday 16th
February 2017

2. "The importance of SMEs to the Scottish
business community can never and
should never be underestimated. They
are the lifeblood of the country's business
eco-system, playing a crucial role in
economic growth and job creation.
The Royal Bank of Scotland is here to
support this sector and we are
determined to help local businesses
succeed”.
Susan Fouquier
Regional Managing Director,
Business Banking Scotland

3. Our approach
We are committed to sharing your business ambitions and helping
you succeed. Together with our dedicated teams we can offer:
Expertise to achieve operational
efficiency and manage risks as your
business grows
Simple day-to-day banking so you can
focus on running your business
Better accessibility to banking through
a range of different channels and
solutions
Accredited Business Managers with a
wealth of financial knowledge and
understanding
Access to a team of specialist product
and sector experts
Rich useful content and access to a
network of connections

4. Agenda
1.Statements of Appetite
2.Good News Stories
3.Assumptions to support projections
15/02/2017This information is classified as public. 4

5. What is a Statement of Appetite ?
• Letter from the bank stating our willingness to lend up to £500k.
• Counter signed by Relationship Manager and either Director Business Banking or
Senior Lending Manager.
• Based on current information (Ideally most recent set of FYE accounts and
breakdown of debt servicing costs, account conduct, Companies House/external).
• Not a credit sanction but does hold additional consideration from credit when
making an application when Statement of Appetite issued.
• Can be issued across all sectors.
• We can also issue SOAs for non Royal Bank of Scotland customers providing they
provide 3 months personal and business banking statements in conjunction with
the information above.
15/02/2017This information is classified as public. 5
Statements of Appetite

6. • Relationship Manager issued SOA for £170k. The customer has since approached
the bank for funding and a loan of £455k has been approved which will assist the
customer in purchasing new commercial premises and help them grow their
business.
• Relationship Manger issued SOA for £145k on. The customer then approached the
RM for funding about 6 weeks later and a loan for £206k was completed to support
the customer in purchasing new premises.
• Relationship Manger issued SOA for £230k. The business is currently a non Royal
Bank of Scotland customer, however they requested funding after being issued with
the letter. RM has now got funding of £153k approved which will assist customer in
purchasing the premises they currently operate from, refurbish and modernise the
premises and double their working capital facility.
15/02/2017This information is classified as public. 6
Good News Stories

7. 15/02/2017This information is classified as public. 7

8. Why assumptions are important
• When assessing credit applications, serviceability is key.
• We can make adjustments to the EBITDA as long as we understand these e.g. are
full dividends required, add back rent [if business premises being purchased], add
back exceptional one-offs.
• If debt servicing cannot be confirmed by existing performance of business, then we
need to really understand improvement in business e.g. will new machines/property
improve productivity or reduce costs?
• Commentary to support projections are a great help when putting together a credit
application.
15/02/2017This information is classified as public. 8
Assumptions to support projections

9. Capitalise on opportunities with asset finance
Asset finance from Lombard could help you to:
Upgrade business equipment: from
machinery, technology or business
equipment to furnishings
Fund equipment from as little as
£5,000
Release working capital
Improve productivity
Reduce the risk associated with
ownership
Manage cash flow
Security may be required. Product fees may apply. Over 18s only
Lombard North Central PLC. Registered in England No. 337004
Registered Office: 135 Bishopsgate, London EC2M 3UR.

10. Invoice Finance
Security may be required. Product fees may apply. Over 18s only
RBS Invoice Finance Limited. Registered in England & Wales No. 662221.
Registered Office: Smith House, Elmwood Avenue, Feltham, Middlesex, TW13 7QD
The real value of your business may be tied up in unpaid invoices, stock or other
assets. Invoice Finance can help you unlock this ‘trapped’ cash;
• Get a fast cash injection - up to 90% of the value of money owed can be
available within 24 hours
• Minimise the risk of bad debts
• As your working capital increases with the your sales performance, you can get
the funds you need for growth straight away (subject to your credit limit)
Invoice Finance
Services
• Factoring (with or without credit protection)
• Invoice Discounting (with or without credit protection)
• Asset Based Lending

11. A unique offering in the banking world, Mentor is an advisory and consultancy service that
helps you manage your compliance and regulatory obligations. In doing so, you can create
better employee relations and a safer, more environmentally friendly workplace.
Our products and services can be tailored to your needs – from preparing documentation,
such as contracts of employment, to helping you develop in-depth policies and procedures.
Mentor
Protect the interests of your business against risk by cutting through the complexities
of Employment Law, Health & Safety and Environmental issues.
• Face to face and telephone consultancy
• 24/7 advice line, 365 days a year
• Accredited training for your employees
• A flexible product range designed to help your business
Our support
Please note that Mentor’s services do incur a cost

12. As well as our banking products we support aspiring entrepreneurs, start-ups and
high-growth business customers by offering our time and expertise through our
partnerships.
Through our partnership with Entrepreneurial Spark we are the only bank that
supports free business accelerators across the UK.
Locations throughout the UK, including Glasgow, Ayrshire and Gogarburn (our
Edinburgh headquarters) in Scotland.
We have supported the Prince’s Trust for longer than any other bank and have a
market leading Women in Business programme.
Enterprise
Supporting more small businesses than any other bank in the UK

13. Thank you
For more information contact:
Andrew Buchanan
Senior Lending Manager
D 0141 550 8308
M 0771 715 1498
E andrew.a.buchanan@rbs.co.uk
LinkedIn andrewbuchananslmatrbs
Twitter @abuchananrbs