HSBC promises an extra £500m

HSBC has earmarked an extra £500m for small business lending in the North West on the back of positive growth figures.

The bank said it has assessed 39 separate forecasts of GDP and investment, as well as the findings of four leading business barometers and wants to match demand for capital from growing businesses.

Its Business of Growth report predicts a 7.1% increase in business investment in machinery, premises and other equipment.

The North West package is part of £6bn of new lending it is making available across its regional network.

David Beaty, HSBC Regional commercial director for the North, said: “We are seeing a marked increase in confidence from our customers. The great news is that this is broadly across the region. Increasing employment and an improving property market is encouraging consumer confidence, adding to the positive outlook.”

He added: “Across our customer base, we are seeing a very welcome increase in demand for us to support and assist with investment and increased working capital facilities. Businesses are using asset backed solutions to support investment in new plant and machinery. We have also seen requests from customers wishing to purchase business premises that they have previously rented, clearly demonstrating a more positive longer term view.”