Finance Fred Heritage · 26 October 2017
Lloyds bank launches 500m working capital growth fund
Lloyds bank has launched a 500m growth fund to allow British firms to invest in high-spec technology, equipment and machinery. The asset finance fund will give businesses of all sizes, including small companies and SMEs, the ability to make crucial investments without putting working capital budgets under huge pressure. The aim of the 500m fund will be to help businesses in sectors where high-spec machinery and innovative systems, including automation and other technologies, can be a big boost to productivity and output. Companies in the agriculture, manufacturing, construction and transport sectors, for example, are therefore expected to be the main beneficiaries of the fund. Commenting on the launch, managing director SME at Lloyds Bank Global Transaction Banking, Ben Stephenson, said: This fund will enable more businesses to benefit from the flexibility of asset finance, which can be used to support firms? needs throughout the economic cycle, whether that’s investing in growth or boosting efficiency. Asset finance enables business owners to buy vital machinery or equipment and spread the costs over the lifetime of that equipment. By allowing for smaller payments to be made over many years, as opposed to needing large upfront payments, asset finance eases the pressure on firms? working capital. Research previously conducted by Lloyds revealed that lack of working capital investment was a key obstacle for businesses in certain sectors, preventing productivity.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.