Lloyds Bank Commercial Banking has just launched a £500m growth fund to provide asset finance which will enable firms to buy capital goods and spread the cost over their lifetime. This, of course, will eliminate the need for large up-front investments by facilitating the opportunity for firms to make smaller payments over long periods of time. For the full story please read the bulletin below issued by Insider Media Ltd. today.
Roger Mundy, Managing Director, Beardsley Theobalds, 24th October 2017
Lloyds Bank launches £500m fund
Lloyds Bank Commercial Banking has launched a £500m growth fund to help businesses improve productivity and invest in new technology and equipment.
The asset finance fund will enable businesses of all sizes to make new investments without putting undue pressure on working capital.
It aims to support sectors where high-spec machinery and innovations like automation and other technology can help businesses boost productivity and grow in a competitive marketplace.
Companies will be able to use asset finance to get quick access to the funds they need to buy expensive business critical equipment without damaging their working capital.
Asset finance works by allowing firms to buy assets such as machinery or technology and spread the cost over their lifetime. By eliminating the need for large payments up front and instead making smaller payments over a longer period of time, the funding helps free up working capital.
Lloyds Bank research that found that inadequate investment was one of the key obstacles preventing businesses from improving productivity, behind skills shortages and onerous regulation.
Ben Stephenson, managing director SME at Lloyds Bank Global Transaction Banking, said: “The pace of technological change is constantly challenging important UK sectors to invest in growth to remain competitive.
“But businesses need to be able to achieve this without damaging their access to working capital.
“This fund will enable more and more businesses to benefit from the flexibility of asset finance, which can be used to support firms’ needs throughout the economic cycle, whether that’s investing in growth or boosting efficiency.”
Gareth Oakley, managing director of SME at Lloyds Bank Commercial Banking, added: “The UK’s low level of productivity compared with its G7 peers remains a challenge, and it’s crucial we work closely with businesses to ensure they have the tools they need to make efficiencies and grow.
“This asset finance fund shows our commitment helping businesses in Britain prosper.”