Manufacturers to get boost from RBS
ROYAL Bank of Scotland is to use the Bank of England’s Funding for Lending scheme to offer UK manufacturers cheaper funds to boost growth.
For the first time, RBS’s Manufacturing Fund will be targeted specifically at mid-sized businesses (MSBs). These firms typically have a turnover of £25m to £500m.
The CBI has said if more could reach their potential, it could add £20bn to £50bn to annual gross domestic product growth.
David Harris, regional director for Royal Banking of Scotland Corporate & Institutional Banking for the Yorkshire region, said: “Mid-sized manufacturers are key in helping the UK grow and export out of recession. Through Funding for Lending, these are the most competitive terms that we have been able to offer manufacturers for several years. We hope it will be a catalyst for investment.”
The RBS fund will offer UK manufacturers fixed and variable rate loans of between £250,000 and £25m with interest rates and arrangement fees for each new tranche of lending. Manufacturers will also benefit from being able to defer any capital repayments for two years.
Matthew Fell, CBI Director for Competitive Markets, said: “This is a welcome move from RBS, swiftly putting the Funding for Lending scheme into action to offer mid-sized manufacturers more accessible rates of borrowing.”