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HSBC announces £400million support for small businesses

HSBC said it had implemented numerous initiatives designed to prevent its banking services being used to evade taxes or launder money
HSBC said it had implemented numerous initiatives designed to prevent its banking services being used to evade taxes or launder money

HSBC is today announcing a £400million fund as part of a wider package of support – its biggest ever – for small and medium-sized enterprises (SMEs) throughout Scotland.

The banking giant said the “staggering” lending pot was worth £100million more than its funding for smaller firms last year.

It also said arrangement and HSBC security fees on qualifying business loans of between £1,000 and £300,000 will be waived or refunded through to the end of July in order to help SMEs capitalise on favourable economic conditions

“This could see the average small business save hundreds of pounds,” it added.

Alison McGregor, chief executive of HSBC in Scotland, said: “Today we are announcing our largest ever package of support for SMEs in Scotland, including a £400million fund for lending and a promotion designed to make it cheaper and simpler to access funding.

“SMEs in Scotland are ambitious and we are open for business and ready to help them invest to grow.

“Too often I hear customers say they weren’t aware just how closely HSBC works with SMEs and start-ups in Scotland. We want to change that perception and reaffirm our commitment to businesses of all sizes.”

Ian Stuart, Head of HSBC’s UK commercial bank, added: “We’re hugely proud of our unique international network but it’s vital that businesses across the country – from start-ups and sole traders upwards – know that HSBC is there to support them.

“We currently approve more than 80% of loans and our net lending to business is up in 2015, but we want to do even more. This fund is an aspiration, not a limit, on our ambitions.”

The overall package also includes 18 months of free business banking for start-ups, or a year without charges for established SMEs which switch their accounts to HSBC.
In addition, the bank is offering local workshops to help businesses grow and prosper.