HSBC To Provide Further Funding For SMEs
As you may be aware the high street banks have been a significant provider of lending to small businesses here in the UK over the years. However, during the recession the banks have tightened their belts in this respect being more cautious with their lending.
Well, HSBC is keen to provide more funds for SMEs here in the UK to help businesses grow. In this respect, HSBC is to provide a £10 billion loan fund for small businesses. It is pleasing to read that the bank will make these monies available to both existing HSBC business customers as well as non-HSBC customers.
Last year, HSBC approved lending to businesses in 91% of cases on loans of up to £30,000 for businesses that transferred their bank accounts to HSBC and also for business start-ups.
It is also good to hear that the £10 billion fund is being made available to small businesses throughout the UK subject to underwriting. Businesses with a turnover of up to £350 million may apply.
It will be interesting to see what the take up is in respect of this lending fund as there are a considerable number of other lenders that provide finance for SMEs here in the UK. And the more lenders that there are often means greater competition that may potentially benefit consumers by way of such things as competitive interest rates and fees.
Of course, it is important that if you are looking for business finance that you shop around to try to obtain a competitive package. In this respect, SMEs could do their own research to try to find a suitable lending package. However, another option is to use the services of a commercial mortgage broker that has access to an extensive panel of lenders. That broker can try to find a competitive lending package for your business leaving you, the business owner, to concentrate on running your business.