As we all know banks have been under pressure to provide more funding for small businesses but looks like HSBC have stepped up to the mark.
The UK’s largest bank has launched a new £8 billion fund to help support small and medium sized businesses across the UK, targeting 43 areas of the country. Businesses in Manchester, Birmingham and Scotland will all get the opportunity to borrow from a fund worth £400 million.
Sam Roden, area director of Business Banking in Manchester, said: “Today we are announcing our largest ever package of support for SMEs in Manchester including a £400m fund for lending and a promotion designed to make it cheaper and simpler to access funding.
"Too often I hear customers say they weren’t aware just how closely HSBC works with SMEs and start-ups in Manchester. We want to change that perception and reaffirm our commitment to businesses of all sizes."
As well as the fund HSBC are to wave all fees on qualifying business loans worth between £1,000 and £300,000 will be waived or refunded through to the end of July in order encourage businesses to seek out the funding.
Ian Stuart, HSBC’s head of UK commercial banking, told The Telegraph he had seen a pick-up in business applications in the past year.
“We want to make it as simple as we can for businesses to take their next step and that’s why we’ve taken out fees and charges. It’s open to any business, although we’re always keen to help out firms that manufacture here, as it’s important to the UK economy.”
HSBC will be pat of the new bank referral scheme where themselves and nine other financial institutions including RBS, Barclays, Lloyds Banking Group, Santander, Clydesdale Bank, Yorkshire Bank, Bank of Ireland, Allied Irish Bank and Danske Bank.
These ten banks will have to refer SMEs to alternative finance provides such as peer-to-business lenders or crowdfunders if they unable to provide finance needed by the SME.