RBS £250m small business funding boost

GOVERNMENT pledges to free-up capital for small businesses edged nearer as NatWest and RBS said it was making an extra £250m funding available for North West enterprises.

 The package was part of a £3bn boost revealed by RBS – which is now 70% state – owned after the Government injected billions of pounds to shore-up its balance sheet.

In addition to providing traditional debt finance, the new funds will offer businesses the opportunity to access other avenues available to help them manage their capital and cashflow through the recession.

The new locally-administered fund will offer customers a range of financial support including flexible business loans which allow customers to postpone capital repayments, invoice finance products which may guarantee debtor payment, effective ways to release cash through using the assets already owned by the business and short term trade finance essential to keep imports and exports flowing.

Accessed via customers’ existing relationship managers, the fund will also offer SME customers lower priced loans from the £250m funding RBS has recently secured from the European Investment Bank. 

Beverley Hughes, Minister for the North West, said:  “Small businesses are the lifeline of our economy and it is critical that they are able to access the finance they need to survive and grow. 

“I do hope that others lenders will take similar steps to ensure that their front-line managers are incentivised to lend to small and medium sized businesses – this is one of the most important issues being raised with me by North West businesses”.

Bill Ratcliffe, managing director of NatWest and RBS Business and Commercial Banking in the North West, added: “The vast majority of the 444,000 companies in the region have fewer than 50 employees, and these make up over half of the region’s workforce. 

“The new regional fund shows our commitment to continue to support and reassure North West businesses, and we will be working closely with North West Regional Development Agency to help local businesses trade through the current economic downturn.”