Could Barclays lend you £25,000 in 60 minutes?

Barclays has become the first UK lender to offer instant approval loans to its small business customers.

The bank sent notifications through its app to some 260,000 customers this week, telling them that they may be eligible.

According to the bank, cash could be in SMEs’ accounts within 60 minutes of approval, with loans available up to £25,000.

The money will initially be available only to high growth businesses with strong credit histories, but the approval process simply requires small businesses to fill in a short questionnaire.

Pre-assessed lending

Ian Rand, Barclays business banking chief executive, said: “We recognise that some businesses are cautious about applying for a loan, while many more simply do not have the time.

“Our new, pre-assessed lending gives customers the ability to see how much they could borrow on their mobile and we can get that money to them more quickly than ever so they can invest in and focus on running their business.”

Businesses reticent

In the pilot stage of the scheme, Barclays found that nearly 40 per cent of its smallest business customers had decided against applying for a loan even when they thought it would help them.

Meanwhile, in separate research conducted by the bank, Barclays found that a quarter of SMEs predicted they stood a lower chance of getting a loan than they did last year.

Eligible Barclays customers can apply for a loan through the mobile banking app.

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