Lloyds Bank announces launch of £500m growth fund for British businesses
Lloyds Bank Commercial Banking has launched a £500m growth fund to help British businesses improve productivity through investment in technology and equipment.
The fund aims to support sectors where high-spec machinery and innovations can help businesses boost productivity and grow in their specific marketplace.
Firms will be able to use asset finance to get access to the funds they need to buy 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.
Making smaller payments over a longer period of time will help free up working capital.
The growth fund is expected to be more beneficial to SMEs and Mid-Market businesses in the manufacturing, construction, agriculture and transport industries, where the requirement of costly assets, such as machinery and vehicles, is common and boosting productivity is a priority.
Research compiled by Lloyds Bank found that inadequate investment was a key factor in preventing businesses from improving productivity. The report, Understanding the Puzzle, also showed that the main focus for firms’ investment plans was improving productivity.
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 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.”
Access free online guidance for North East businesses in the Growth Hub North East's COVID-19 toolkit →