British Business Bank announces new £300m ENABLE guarantee for Barclays to boost UK smaller business investment
The British Business Bank has today announced a new £300m ENABLE guarantee to help Barclays Bank increase their provision of flexible asset finance to smaller businesses looking to invest in vehicles, equipment, plant and machinery.
The British Business Bank’s ENABLE Guarantee programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against such lending.
Barclays will use the capital benefits it derives from its participation in the programme to offer qualifying Small and Medium-sized Enterprises (SMEs) cashback on eligible asset financing, with the intention of stimulating SME demand for asset finance.
Patrick Magee, Chief Commercial Office at the British Business Bank said, “Our recent Small Business Finance Markets report found that asset finance is the most popular form of alternative finance used by smaller businesses, with only bank overdrafts and credit cards being used more frequently.
“Promoting this important type of finance will encourage more business investment in equipment, plant and machinery. This in turn will help UK smaller businesses achieve their growth potential. We are delighted to be working with Barclays so that many more growing businesses will be able to access such finance.”
Karl Nolson, Head of Global Lending Group, Barclays Corporate Banking said, “We want to help UK SMEs grow more quickly. By collaborating with the British Business Bank, we can now offer cashback to clients, boosting their cashflow and encouraging them to invest in assets that will drive their business forward.
“Working with our asset finance specialists, the companies we support will be able to spread costs over a term to suit them, at a fixed or flexible interest rate. Rather than worrying about how to fund their growth ambitions, businesses will be able to focus on the important stuff – delivering improved goods and services to their customers in the UK and overseas.”