Good news for small to medium businesses looking for funding. HSBC recently launched a £12 billion lending fund to support small to medium-sized enterprises (SMEs) in the UK.
HSBC’s UK SME fund is now entering its fifth year and is the largest fund to date. It has been increased by £2 billion from last year after the popularity and success of the 2017 fund.
The first fund set up was £6 billion in 2014 and has been increased each year following the successes it has produced. The total funds made available to SMEs over the past five years makes £46 billion.
The fund will be split and allocated between specific regions across England, Wales, Scotland and Northern Ireland to ensure it remains truly UK-wide.
Amanda Murphy, head of commercial banking at HSBC UK said: “British companies are optimistic about their trade growth prospects but it’s important they can get the finance they need to achieve it.”
HSBC have also ring-fenced £1 billion to help UK companies grow their business overseas. According to HSBC research, over two thirds (72%) of UK businesses expect their cross-border trade to increase this year.
“With this in mind, we have set aside £1 billion of the fund to support international businesses in the UK. We cover more than 90 per cent of global trade and capital flows and are uniquely placed to help these businesses trade overseas,” Murphy added.
Kelly Tolhurst, small business minister said that the UK’s 5.7 million small businesses are the backbone of the economy. “Through our modern Industrial Strategy and industry-led initiatives such as this, the Government and industry are building an environment in which businesses all over the country can thrive.”
This also comes as the Royal Bank of Scotland announced their £775 million boost for small businesses is finally taking steps forward. So things are looking good for SMEs.
How do businesses get their hands on the fund?
In order to be considered for the fund, you need a maximum turnover of £25 million. The fund is open to any sector of business and will be available for the next 12 months.
To apply, you’ll need to go to the HSBC website, make an appointment with an adviser or speak to a HSBC ‘relationship manager’.
Are you planning to apply for the fund? How will the cash injection benefit your business? Please let us know your thoughts below.
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An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.