Government Launches Small Business Investment Bank
Funding for Lending
Some of the more famous British high street banks are changing their ways in an effort to become more SME friendly. Some examples of the banks looking to reform are RBS, which also includes NatWest and Lloyds Bank.
RBS has always had a fund specifically for manufacturing companies but was generally unable to offer a large amount of investment to smaller businesses.
Vince Cable, Business Secretary, recently launched the Government’s Funding for Lending Scheme that has allowed for banks of this nature to really give the best rates they can to start-up businesses.
The Government’s involvement with private bank firms stems from their new industrial strategy, an initiative that attempts to bring manufacturing back to this country and in turn, the profits it reaps as well as the job opportunities created by enhanced manufacturing presence in the country.
RBS is now able to offer the same great rates to their smaller SMEs as they would to larger companies creating an environment where start-up businesses are encouraged to stay in the UK.
They offer accessible funds for any business that is looking to bring in between £25 and £500 million a year. SMEs are now able to borrow between £250,000 and £25 million from the bank with variable payback plans.
Peter Russell, Head of Manufacturing at RBS had this to say regarding the situation, “Through Funding for Lending, these are the most competitive terms that we have been able to offer manufacturers for several years”.
RBS is also quoted to saying that SMEs in the manufacturing sphere will also have the advantage of being able to defer any capital repayments for up to two years.
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