HSBC has launched a new £8 billion fund for small and medium-sized businesses.
The money will be available in 43 parts of the country, with London receiving the largest tranche at £2.1 billion. Birmingham, Manchester, Scotland, and West Yorkshire will each receive at least £400 million.
The bank will lend against proven cashflow. James Cliff, head of business banking, said: “What we aren’t is equity providers and equity providers will lend against a concept or an idea and a concept or an idea doesn’t have a proven cashflow.
“So if people have equity needs they should be talking to business angels or a start-up loan company that the government has backed. We as a high street bank can support businesses with demonstrable cashflow and help them grow.”
Ian Stuart, HSBC’s head of commercial banking, said: “We want to make it as simple as we can for businesses to take their next step and that’s why we’ve taken out fees and charges. It’s open to any business, although we’re always keen to help out firms that manufacture here, as it’s important to the UK economy.”
Businesses can apply for the money through HSBC’s normal lending processes.