Barclays has begun pre-approving credit for hundreds of thousands of its business customers.
The bank now offers instant credit facilities for around 300,000 businesses, with an average limit of more than £15,000.
Barclays now aims to roll out pre-approval to more than two thirds of its business customers. From 2014 it is expected that the bank will disclose customers’ pre-approved credit limits, allowing instant access for those who are deemed creditworthy.
As of this week the facilities are available to businesses with an annual turnover of more than £10,000, and a solid credit history dating back at least a year.
The bank says that it hopes the new drive will enable more UK businesses to deal more efficiently with cashflow issues. Barclays Business Banking chief executive said: “We know that cash-flow can be a big problem for growing businesses and one of the biggest headaches is winning a big pitch or order, but having no certainty on whether you can finance that growth.
“With this new initiative our business customers will know that at the moment they need to borrow, the investment is there to support them.
“We recognise that not every small business wants debt or to increase the existing facilities. We want to lend the right type of finance, whether that’s an extended overdraft, long term finance, or looking at wider forms of equity funding. Overall we think instant lending can deliver a huge shot in the arm for SME’s across the country and for our economy too.”
Read more about financing your small business](/knowledge/articles/2013/05/small-business-finance-guide/).