Bank throws a lifeline to our smaller firms
HSBC UK has launched a £15bn lending fund for small and medium sized businesses, with £1.5bn ringfenced to support local economies, employment opportunities and drive growth across West Midlands.
Whilst concerns about the broader market remain, HSBC’S customers are thinking about growth via investment, acquisitions and capital expenditure.
The fund is a key part of HSBC’S commitment to help British businesses to innovate, thrive and grow in the UK and internationally. SMES are vital to the UK economy and account for three fifths of the employment and around half of turnover in the UK private sector according to the Federation of Small Businesses.
The fund, which includes specific regional and locally focused allocations, will seek to ensure that companies throughout the country can benefit.
This year’s fund also includes ring-fenced funding for businesses trading internationally (£2 billion), in the agriculture sector (£1.2 billion) the tech sector (£500m) and franchise businesses (£500m).
It is also aligned with the Green SME Fund (£500m) for businesses of all sizes to transition and thrive in a low carbon economy and the new Growth Lending Fund (£250m) for high growth tech businesses to support wellequitised, high growth, loss-making scale-ups early in their growth journey.
Since launching the SME Fund in 2014, HSBC has lent more than £90 billion helping businesses to make the most of their money now and into the future, and opening up a world of opportunity for its customers.
Small business commissioner, Liz Barclay, said: “The challenges facing small businesses are beyond imagination.
“The problems caused by poor payment practices such as late or delayed payments, and extended payment terms pile pressure on cash flow.
“Small firms are the lifeblood of the economy, and they must be paid fast and fair, and if they are to have the confidence to invest and build the resilience, they’ll need to weather the storms ahead and they will need the support of funds like this more than ever.”
Peter Mcintyre, head of business banking at HSBC UK, said: “SMES are vital to the UK economy.”