South East: Barclays launches new instant mobile loan scheme for SMEs

Research shows that 30% of SMEs and 39% of small businesses are hesitant about loans which would boost their businesses. It also shows that 64% of SMEs’ turnover would increase if they successfully secured the right loan. In response to this situation, Barclays has launched a new instant mobile lending scheme for its client base. SMEs have come to expect the lending process to take at least five weeks, but the new scheme will make loans and overdrafts available instantly.

It is hoped that the new scheme will exploit an estimated £34 billion economic opportunity waiting to be unlocked from Britain’s SMEs by 2021, and it is believed that it could help to generate nearly 200,000 new jobs for Britain over the next four years, with opportunities concentrated in retail, professional services and manufacturing. 

Barclays is the first UK bank to offer this service which it hopes will removing the myth that banks don’t want to lend.   

       Ian Rand, CEO of business banking at Barclays, 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 businesses.”

The research also found that one in five SMEs believe Brexit is impacting their current or future funding requirements; and that a quarter of SMEs believe it will be harder to secure a loan in 2017, with Brexit causing economic and political uncertainty, against a background of global economic uncertainty.  

Rand added: “Since the EU referendum our appetite for lending has not diminished and we continue to lend to an SME in the UK every four minutes. We want to help SMEs be confident in their future business plans, including looking at new opportunities to export. We are particularly determined to reach out to those businesses who believe lending will be more difficult next year to see where we can help.”