HSBC today introduces a national fund worth £8 billion in order to back SMEs in the UK.
The fund aims to support 10,000 businesses across the country and will look to aid the growth of establishing local firms and those starting new businesses.
It will be available across 43 areas, including a £2.1bn fund for London and £400m for Manchester.
Alongside the fund, arrangement and security fees on all business loans (fixed-rate and variable-rate) between £1,000 and £300,000 will be postponed until 31 July 2015. Start-ups will also be offered 18 months of fee-free banking, while existing SMEs who switch to the bank will be offered 12.
Having greater access to funding has long been on the small business wish list, so the extra funding from HSBC will be good news for many.
The funds are available for any business from start-ups to those with a £350 million turnover.
HSBC currently approves 85% of business loan applications, and had 75,721 SMEs open an account in 2014.
James Cliffe, HSBC UK Head of Business Banking, told BusinessesForSale.com that the bank is a ‘key supporter of the UK economy’ and from talking to their customers, they recognise that growth is the main agenda for businesses:
‘The package of support that we’ve announced today is very broad and not just about the fund. The first element is a series of workshops entitled ‘Strategies for Growth’ will be run in every area of the UK. We’re looking at 300 of these workshops designed to challenge entrepreneurs on how they’re going to grow their business… We can give them some insight but they’ll also hear from other entrepreneurs who have been successful in growing their business.
‘Those customers would then need funding to support that growth can apply for it through our £8 billion fund. So what we’re also announcing today is that, to make it easier for people to borrow, we are waiving the arrangement fees and HSBC security fees on business loans up to £300,000 between now and the end of July.’
For more information, SME owners or start-ups can go down to a HSBC branch to speak to a business specialist, contact a relationship manager in one of their commercial centres or visit the HSBC website.
If you enjoyed this article, sign up for a *free* BusinessesForSale.com account to receive the latest small business advice, features, videos and listings directly to your inbox!