The aim of the fund is to support businesses of all sizes to make new investments without using their working capital. It will be available to sectors where new technology, automation and high-spec machinery can help firms increase productivity and expand in competitive markets.
Research done by Lloyds Bank found that insufficient investment in innovation was one of the major issues preventing businesses from increasing productivity. The research also showed that the main aim for firms’ investment plans was improving productivity, with the manufacturing industry specifically highlighting the procurement of new machinery as key to achieving this.
The growth fund will be on offer to provide quick access to funds needed to purchase critical equipment without using working capital. It will allow eligible businesses to buy assets by spreading the cost over their lifetime without a large payment up front, freeing up working capital.
The asset finance fund will be of particular benefit to SMEs in the manufacturing, construction, and transport industries, in which the requirement of expensive assets, such as machinery and vehicles, is common and boosting productivity is a priority.
Ben Stephenson, managing director of SME at Lloyds Bank Global Transaction Banking, said: “The pace of technological change is constantly challenging important UK sectors to invest in growth to remain competitive. But businesses need to be able to achieve this without damaging their access to working capital.
“This fund will enable more and more businesses to benefit from the flexibility of asset finance, which can be used to support firms’ needs throughout the economic cycle, whether that’s investing in growth or boosting efficiency.”
Gareth Oakley, managing director of SME at Lloyds Bank Commercial Banking, added: “The UK’s low level of productivity compared with its G7 peers remains a challenge, and it’s crucial we work closely with businesses to ensure they have the tools they need to make efficiencies and grow.
“This asset finance fund shows our commitment helping businesses in Britain prosper.”
For more information and support to secure finance for your business visit our ‘Access to finance’ page.