In a bid to support Britain’s micro firms, Lloyd’s bank has announced it will waive loan arrangement fees for business customers with under 1m annual turnover.
The high street lender is extending the offer to micro firms and startups borrowing up to 150, 000, on the understanding that for the smallest firms, even relatively small amounts of capital make a big difference to growth.
Under the offer, a startup founder wanting to borrow 20, 000 from Lloyd’s, to pay for a new vehicle for example, would save 300.
Similarly, a business owner looking for finance to pay for new stock or equipment would avoid the 175 term loan arrangement fee on a 6, 000 loan.
Commenting on the bank’s new offer, Lloyds? retail business banking head Jo Harris admitted: Every penny counts when you’re setting up a business.
waiving our loan arrangement fees will benefit many of our smallest business customers to help them to grow. It also sends a positive signal which should help to build confidence in the availability of finance.
The bank’s offer will run from 6 October 2016 to 9 January 2017 open to business owners who complete their applications before 9 January and draw down their loan within three months.
So far in 2016, Lloyds has promised to help 100, 000 UK startups get up and running? and has said it will help a further 1, 000 firms grow into 1m turnover companies. The bank has also pledged $60bn in new lending in support of both individuals and businesses this year.
In early 2016, Lloyds bank backed small business in the North West of England by promising to get 5, 000 firms in the region exporting by year end, with the figure rising to 25, 000 by 2020.
Read on to find out why alternative finance is being shunned in favour of bank lending?