South Hampshire and Dorset: HSBC launches £200m fund to support SMEs

HSBC recently launched a £200 million lending fund to support small and medium-sized enterprises (SMEs) in South Hampshire and Dorset.

The fund is the largest package of support for SMEs in the area ever announced by HSBC, £50m more than was allocated last year. The increase is part of a broader commitment to make banking cheaper and simpler for customers.

Along with the new allocation is a broader package of support which includes a free banking offer of up to 18 months for start-ups and 12 months for switchers; the introduction of year-long fixed-price £5.50 monthly account tariff, to commence at the end of a customer’s initial free banking period.

Also included are a reduction in the personal guarantee fee from £80 to £10 for any lending facility above £10,000; the launch of the business lending eligibility checker (BLEC) which is an online tool offering potential new customers a credit decision in principle for loans of up to £30,000 in under two minutes; and a free text alert service for informal overdrafts, which will help customers avoid paying informal overdraft fees and interest.

Nigel Davis, HSBC’s regional director for business banking in the Western and Wales region, said: “We want to be the bank of choice for South Hampshire and Dorset SMEs, reinforced through our desire to lend more to local businesses, by committing the funds to do so, and by making banking easier and cheaper to help our customers grow.” 

Ian Stuart, HSBC’s head of UK commercial banking, said: “SMEs are the driving force of the UK economy and we are here to support them, whether they are a start-up or established business, focused either on the domestic market or looking to trade internationally.  This fund underpins our support by putting SMEs in a stronger position to be making investments that will stimulate local economies and create more jobs.”

Anna Soubry, the small business minister, said: “We have a record number of small businesses driving our growing economy and while the picture is improving, access to finance remains an issue for many of them. It’s absolutely right that banks such as HSBC continue to develop their support for smaller businesses. I also want to see more of these businesses taking advantage of what’s on offer, both from banks and alternative lenders, to help them grow, invest and create jobs for people.”

HSBC supports over one million businesses in the UK, approves over 89% of lending applications, almost 90,000 SMEs opened an account with the bank in 2015 and its gross new lending for SMEs was up 34% in the year.