Small businesses to benefit from extended Funding for Lending scheme Reply

3d concrete Bank Building on a white background

The Bank of England and HM Treasury have announced a two-year extension to the Funding for Lending Scheme.

The Bank and HM Treasury launched the Funding for Lending Scheme (FLS) on 13 July 2012. The FLS is designed to incentivise banks and building societies to boost their lending to the UK real economy.  It does this by providing funding to banks and building societies for an extended period, with both the price and quantity of funding provided linked to their lending performance.

The FLS allows participants to borrow UK Treasury Bills in exchange for eligible collateral, which consists of all collateral eligible in the Bank’s Discount Window Facility.

The Bank and HM Treasury announced an extension to the FLS on 24 April 2013, which was amended on 28 November 2013, on 2 December 2014 and on 30 November 2015.  This allows participants to borrow from the FLS until January 2018, with incentives to boost lending skewed towards small and medium sized enterprises (SMEs). 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/194214/fls_infog.pdf

Crowdfunders have also been able to access Funding for Lending via the Business Finance Partnership Program

 

steve@bicknells.net

Contact Us

 

 

 

Funding for Lending Scheme will reduce the cost of borrowing 2

NatWest has set aside £2.5Bn of funds to be provided as loans to customers. That money will be lent with a 1% discount on interest charge and NO ARRANGEMENT FEE.

Any commercial loans to help trading will qualify. That will include asset purchase, buying factories and trading premises. Trade finance, possible buy-outs.

Nat West are also seeking to allow re-drawing of loans, say lending back the last three years repayments, plus terming out hard core OD’s.

I am sure that all the other High Street Banks will have similar schemes so its worth contacting you bank manager to see if the Funding for Lending Scheme can be applied to your loans.
steve@bicknells.net