Turner Little reports on high street bank HSBC’s recent decision to launch a new financing facility for British small to medium-sized enterprises (SMEs).
HSBC SME Fund
According to Small Business, HSBC has launched a £10 million (m) support package for UK SMEs. Part of the financial institution’s broader commitment to making consumer banking simpler and easier, the Fund is aimed at providing UK small businesses with expansion financing. The HSBC 2016 SME Fund will feature a range of additional extras for participants, including:
- Business eligibility checker: An online facility, this feature will give SMEs the opportunity to attain a credit decision in principle for loans as high as £30,000 in less than three minutes.
- Free banking: With the HSBC 2016 SME Fund, switchers will be able to secure free banking for 12 months. This offer will also be extended to start-ups for a period of 18 months.
- Fixed-tariffs: Under the facility, SMEs will receive a year-long fixed monthly account tariff of £5.50 at the end of their initial free banking period.
Accessing vital financing
Explaining the importance of this new Fund, Head of UK Banking at HSBC Ian Stuart commented: “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.”
Adding commentary, UK Small Business Minister Anna Soubry noted: “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.”
Rise of alternative finance
Shedding new light on the significance of the HSBC 2016 SME Fund, the Chairman of online lender ThinCats Kevin Caley argued: “HSBC has kept a low profile in the SME lending sector for several years, so this decision to make a £10 billion commitment to UK businesses will be roundly welcomed.
“If anything, the proposed funding programme highlights just how big the market for business lending is, and how much room for growth there still is for the alternative finance sector.” As Turner Little previously noted, increasingly there are a number of alternative financing sources available to UK small business owners. For instance, data from the British Business Bank shows that small business equity finance deals expanded by 43% in the year to October 2015, while peer-to-peer lending to these companies grew by 75% within the same frame of time.
Turner Little
The number of financing options available to UK small business owners increases every day. By taking advantage of these funds, you can access the capital required to expand your operation and increase revenue. In order to capitalise on opportunities such as the HSBC 2016 SME Fund, ensure your business has the robust financial infrastructure in place to manage capital appropriately. As Registered Bank intermediaries, Turner Little can provide you with expert advice on UK banking matters.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
