Instant loans averaging £15,500 were yesterday offered to hundreds of thousands of traders who have a business bank account with Barclays showing turnover of above £10,000.
Announcing what it called a “huge shot in the arm” for smaller businesses, the bank said it would approve the loans for 300,000 traders – a significant chunk of its SME customers.
The loans, eligible to firms with 12 months’ trading history, are designed to help traders who win a pitch or order but would otherwise be unsure as to whether they can finance the growth.
When qualifying firms contact the bank by phone, they have been promised “instant approval” of the available funds, which will be ready to loan from next month.
The average limit for a loan will be £15,500, and eligible firms can apply to secure it in the shape of an extended overdraft, long-term finance or a type of equity funding.
Editor's Note: Further Reading -