Bank boosts lending for small firms Speed of access to finance can be vital...
Barclays has doubled its maximum amount for unsecured business loans for small and medium-sized enterprises (SMEs) from £50,000 to £100,000.
The bank has also identified more than 40,000 SME clients in the UK that could be eligible for the higher levels of lending, which could be in their accounts within days.
The move will help SMEs in Yorkshire get faster access to finance, Barclays believes it will help them to seize opportunities they might otherwise miss. Caroline Pullich, Barclays
Business Banking, Head of SMEs for Yorkshire, said “Many people think taking a business loan is stressful, or they are put off by the perceived bureaucracy and time involved.
“At Barclays, we are tackling this head-on, making small business lending faster, simpler and easier.
“Importantly, a business loan is a type of finance that can really transform a brilliant, hardworking company, allowing it to scale up and serve more people. Removing barriers to such investment is good for firms across the country, and for the economy.
“Furthermore, speed of access to finance can be vital in today’s environment. Business moves very fast, and firms can access larger opportunities at short notice thanks to digital communication.
“Unsecured lending can also be particularly useful for certain types of business. This includes nimble firms that achieve high growth rates without owning premises that would serve as security for a loan, or those led by young entrepreneurs who have a successful business but are yet to buy a home that could serve as security.”
Research conducted on behalf of Barclays also highlighted the importance of access to finance. Barclays’ survey of SME business owners shows just how vital speed is, with one in seven of those surveyed in Yorkshire saying they have lost out in the past because they could not get a loan or funding quickly.
The research also found that seven per cent of business owners surveyed in Yorkshire said they would be more likely to apply for a loan if they could get a decision within 24 hours, while nine per cent said the time it takes to get a loan puts them off applying. Problems accessing finance are often cited as a barrier to economic growth.