New 10bn HSBC small business loans fund set to unlock UK exports
The latest HSBC small business loans fund will target export growth for small firms
Entrepreneurs will soon have access to an HSBC small business loans fund worth 10bn, after the lender announced a range of new offers for UK founders.?
HSBC has promised the fund would be truly UK-wide, emphasising opportunities for firms across England, Scotland, Wales and Northern Ireland.
The lender broke down some its regional finance pledges:
Wales: 500m
Northern Ireland: 100m
North West of England: 900m
East of England: 925m
South West of England: 700m
South East of England: 1.275bn
According to the bank’s approval figures, nine in ten loan applications were successful in 2016, and Ian Stuart, HSBC’s UK CEO, said the latest 10bn fund reaffirms our commitment to support the growth of UK SMEs of all sizes, from startups to established businesses.
The new lending package from HSBC will specially look to bolster the exporting capabilities of small business owners.
New research from the bank revealed a misconception among new entrepreneurs that only long-established businesses could be successful exporters.
The main barrier to growth for three-quarters of survey respondents was a lack of international business experience. However, over a third of small exporters banking with HSBCbegan selling overseas within the first year of trading.
Stuart cited data from the Federation of Small Businesses (FSB) that suggested the right support could double the one in five small firms currently exporting.
Amanda Murphy, HSBC’s head of commercial banking, said better finance opportunities would meet the appetite of founders to grow their business through exporting.
hSBC can provide access to new trading networks for businesses of all sizes, help them to understand how they can consider exporting with confidence, and has the expertise to help businesses navigate change by being responsive, flexible and nimble.
HSBC has looked to court a new wave of small business customers with the extensive new offering, including an 18-month free banking deal for new clients, and practical services such as a text alert for informal overdraft fees and interests.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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