HSBC debuts £10bn lending fund for small businesses
Bank is looking to support small business customers with largest ever funding package and fixed fee banking for a year
Small and medium-sized enterprises are set to benefit from a new £10bn lending fund announced by HSBC today.
The fund – the bank's largest to date – intends to make it cheaper and easier for smaller UK businesses to access growth finance following the launch of HSBC's £8bn fund last year.
To coincide with the fund, HSBC has reduced its personal guarantee from £80 to £10 for any loan of above £10,000, as well as free banking for up to 18 months, followed by a fixed monthly business bank account fee of £5.50 for a year.
Although businesses are increasingly turning to alternative financial services, recent research showed most businesses still trust their bank as their payment provider over rival alternatives.
Ian Stuart, HSBC’s head of UK commercial banking, said:
“Small businesses are the lifeblood of the UK economy and we are committed to providing the finance and support they need to realise their business goals.”