Barclays launches largest ever loan cashback scheme for SMEs

The cashback scheme for term loans is part of a much larger fund launched by Barclays to help SMEs through and beyond Brexit.

Barclays has announced the launch of a new cashback scheme for UK SME term loans, supported by a £450bn ENABLE guarantee from the British Business Bank.

The ENABLE Guarantee helps banks to increase lending to smaller businesses by reducing the amount of capital needed to be held against lending.

Barclays can also offer qualifying SMEs cashback on eligible lending. Companies can benefit from 0.25pc cashback on eligible loans. Businesses with up to 250 employees and a turnover of up to £43m are eligible for a loan.

Keith Morgan, CEO, British Business Bank, said: “Term loans are an essential part of the finance landscape for smaller UK businesses, enabling them to make larger longer-term purchases of business assets such as computers, plant and machinery, and vehicles. We are pleased to be working with Barclays to help businesses access the finance they need to grow and thrive.”

Small Business Minister, Kelly Tolhurst, said: “This is a fantastic initiative from Barclays and the British Business Bank. I would encourage other lenders to take advantage of the guarantees for lending on offer from the government-owned British Business Bank, so we can work together to help our brilliant businesses unleash their potential.”

Barclays launches fund to help small business through Brexit

This scheme is part of a £14.7 billion lending fund to help small and medium-sized businesses (SMEs) negotiate Brexit and beyond.

The Barclays Brexit fund, which is a three-year commitment, will offer the following:

  • Business loans, commercial mortgages and overdrafts up to £250,000 working capital
  • Cash flow funding for investment in growth, management buy-outs and business acquisition
  • Loans for innovative businesses looking for growth funding, capital and environmental investment

The fund will take advantage of the government-backed Enterprise Finance Guarantee programme, which is designed to promote lending to small business by offering guarantees supported by the British Business Bank.

Businesses with turnover of up to £25 million will be eligible to borrow from the £15 billion debt fund.

In addition, Barclays will be running over 100 SME Brexit clinic and seminars across the country. Seminars will help SMEs think about managing cash-flow and working capital, exporting goods abroad, labour, supply chain management, and broader issues of preparedness.

Barclays group CEO Jes Staley said: “Barclays stands ready to help local businesses in towns, cities and rural communities, up and down the country, during this period of uncertainty. Today’s £14 billion fund, along with our broader package of support, shows our commitment to the local businesses that are the backbone of the UK economy – we are here to help them plan for the future and invest for growth.”

“It is the entrepreneurs, the farmers, the manufacturers, the house-builders, the new tech firms and countless other businesses, that will help the country deal with – and capitalise on – this period of change. Barclays is here to help SMEs to do exactly that.”

Read more

Best small business loans in the UK

Avatar photo

Tim Adler

Tim Adler is group editor of Small Business, Growth Business and Information Age. He is a former commissioning editor at the Daily Telegraph, who has written for the Financial Times, The Times and the...

Related Topics


Leave a comment