Are you window shopping for business loans? The Industry looks at which banks SMEs should be approaching.
There has been a fair amount of controversy in the press recently regarding small business loans and lending from big banks, with news flooding in that radical cuts have been made. In light of this, António Horta-Osório‘s recent promise to increase lending, reduce borrowing costs, and help start-ups was music to small businesses’ ears.
“Small and medium sized businesses are the bedrock of the UK economy and I am determined to give them all the support they need,” said the Lloyds chief executive after the highly publicised pledge was made. “This reassurance is critical if we are to help rekindle confidence and spur economic growth and that is why I want to give my personal commitment to supporting the sector.”
Putting money where his mouth is, the chief executive has vowed to lend at least £5 billion to his one million small business customers by the end of the year.
Pledge aside, if you’re a small business looking to secure external capital, Lloyds and the Royal Bank of Scotland should be the first ones on your hit list, taking the two biggest majority stakes in the SME lending market today.