Clydesdale Bank launches Growing Business support package


Clydesdale Bank has today unveiled a package of measures to support growing businesses across the UK.

The “Growing Business” package of measures will provide new and additional support for businesses looking to start up, expand or switch their banking arrangements. This range of initiatives underlines the Bank’s commitment to help UK businesses grow under the Funding for Lending scheme.

The Banks will provide a number of schemes, each aimed at different businesses at different stages in their lifecycle. The first of these will be the launch of fee-free business loans and overdrafts. The removal of an arrangement fee could save businesses up to £10,000 on a £500,000 business loan, for example, freeing up money that can be used elsewhere to support their growth.

For businesses looking to grow, the Bank has launched a £1bn Business Expansion Fund. This fund is specifically aimed at supporting those businesses looking to grow their current operations; through new or improved equipment or machinery, greater space, or diversification, and is open to all types of business. Lending from the fund will also benefit for the Fee-Free offer.

The Bank has also committed to maintain its current offer of free banking for start-up businesses. This offer gives free day-to-day banking for new businesses for 24 months, saving them £720 per year on average at a time when funds are at a premium.
The fourth element of the support package will see the Bank’s current switching offer extended and enhanced from the start of next month. The current offer provides 18 months of free day-to-day banking for businesses with turnover up to £1m switching to Clydesdale Bank; which is understood to be the longest free period currently on offer to switching businesses.

According to the Department for Business Innovations and Skills, 80% of SMEs have growth plans for the next three years, and 82% have taken steps to grow in the last 3 years.

Paul Shephard, director of Business and Private Banking at Clydesdale Bank said: “In the last year we have seen an increasing number of growing businesses coming to us with plans to invest in better or more equipment and machinery, or for support involving new or extended premises. By ring-fencing this fund, a growing business can be confident that we are actively lending to support expansion.

“Our Business Managers have the flexibility to work with businesses on pricing of their borrowing, so that it is competitive and reflects all the relevant factors, including funding costs. By offering fee-free lending, we are reducing the costs of borrowing directly.

“We have continued to support businesses throughout the economic downturn, that commitment is undiminished. Today we have launched a package of initiatives that enhances our existing range of competitive products and underlines our support for growing business.”

Businesses can find more information at http://www.cbonline.co.uk/business/, or by calling 0800 032 3971.

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