Small businesses with ambitions for growth could benefit from a £6 billion funding pot being made available to SMEs in the UK by banking giant HSBC. The bank is planning on releasing slices of this amount at all of its 56 local business centres across Britain.
The money is available for companies with a turnover of up to £30 million. This move was made after HSBC’s new Business of Growth report revealed an increase in GDP growth, Eurozone outperformance and a rise in business confidence over the past 12 months.
Amanda Murphy, Head of Business Banking for HSBC, said: “Ambitious British businesses are saying they are going to invest this year and get on with growing. We want to support their ambitions by significantly increasing our net lending to businesses this year.
“Business growth will come from all of our regions and by breaking down funds to a very local level we are confident we can help make a real difference. We have put the funds into the hands of our local relationship managers to empower them to identify and work with ambitious companies in their area.”
SME growth predictions
The Business of Growth report was put together using a variety of growth forecasts concerning GDP and investment, along with consideration of findings from the UK’s leading business barometers.
From the results, a GDP increase of 2.7% is anticipated for 2014 – the highest since 2007. Fixed investments such as stock, machinery and premises are expected to increase by 7.1% in 2014; this is compared to a pre-recession average increase of 3.6% and a figure for the same time last year of 4.7%.
Purchasing new equipment, expanding into international markets and smoothing out supply chains and payment cycles with working capital solutions are some of the ways HSBC says small businesses use bank loans to support growth.
Do you have big plans for business growth in 2014? Do you think this is a positive move from HSBC? Let us know @theinsuranceoct