Member Article

RBS launch manufacturing fund

The Royal Bank of Scotland has announced it will use the £80bn Funding for Lending scheme to back a manufacturing fund for SMEs.

RBS, which is 80% state owned, will target SMEs with a turnover of £25m to £500m through the fund.

Using the Bank of England’s scheme, the bank will offer UK manufacturers fixed and variable rate loans of between £250,000 to £25m, and businesses will be able to defer capital payments for two years.

Manufacturers will be able to access loans over three and five-year periods. The fixed rates are 2.75% and 3.2% respectively (down from previous rate of 3.45% and 4.25%.

Peter Russell, Head of Manufacturing, RBS said: “Mid-sized manufacturers are key in helping the UK grow and export out of recession. Through Funding for Lending, these are the most competitive terms that we have been able to offer manufacturers for several years. We hope it will be a catalyst for investment.”

Matthew Fell, CBI Director for Competitive Markets, said: “This is a welcome move from RBS, swiftly putting the Funding for Lending scheme into action to offer mid-sized manufacturers more accessible rates of borrowing.

Recent EEF research predicts forecasting UK manufacturing sector will grow by 5.7% in 2012 and that 12% more manufacturers in the UK as whole expect manufacturing orders to increase as oppose to decrease.

This was posted in Bdaily's Members' News section by Tom Keighley .