HSBC has today launched a £10 billion lending fund to support small and medium-sized enterprises (SMEs) in the UK, as part of a broader commitment to make banking cheaper and simpler for customers.
The £10bn fund is the largest package of support to be announced by HSBC for UK SMEs – and has been structured to ensure it’s truly UK-wide so that ambitious SMEs in England, Wales, Scotland and Northern Ireland are able to access the funds they need to grow their businesses.
HSBC’s 2016 SME Fund and broader package of support includes*:
A £10bn UK-wide fund for SMEs, allocated regionally across the UK
A free banking offer of up to 18 months for start-ups and 12 months for switchers
The introduction of year-long fixed-price £5.50 monthly account tariff, to commence at the end of a customer’s initial free banking period
Changes that will make banking cheaper for our customers: a reduction in the Personal Guarantee Fee from £80 to £10 for any lending facility above £10,000
The launch of the Business Lending Eligibility Checker (BLEC) – an online tool offering potential new customers a credit decision in principle for loans of up to £30,000 in under three minutes
A free text alert service for informal overdrafts, which will help customers avoid paying informal overdraft fees and interest.
HSBC’s Head of UK Commercial Banking, Ian Stuart, said: “SMEs are the lifeblood of the UK economy and at HSBC we are committed to providing the finance and support they need to realise their business goals. The launch of the £10bn fund signals our aspiration to lend more to UK SMEs of all sizes, whether they are a start-up or established business, focused either on the domestic market or looking to trade internationally.
“Right across the UK there is a wide range of innovative new and established SMEs, proving that location is no barrier to a great business idea. This fund underpins our support by putting SMEs in a stronger position to be making investments that will stimulate local economies and create more jobs.”
Small Business Minister, Anna Soubry has encouraged small businesses to capitalise on the services being offered by lenders to support their growth.
“We have a record number of small businesses driving our growing economy and while the picture is improving, access to finance remains an issue for many of them. It’s absolutely right that banks such as HSBC continue to develop their support for smaller businesses. I also want to see more of these businesses taking advantage of what’s on offer, both from banks and alternative lenders, to help them grow, invest and create jobs for people.”