Barclays backs SMEs with an extra £1.5 billion

by Gill Montia

Story link: Barclays backs SMEs with an extra £1.5 billion

Barclays has outlined a two-pronged plan that it says will enhance its practical support to the UK’s small and medium-sized enterprises (SMEs).

The bank currently has some £15 billion in loans outstanding with SME customers, having increased the balance by 6% over the past year.

It plans to make at least a further £1.5 billion available in 2009 and in addition, is making its CreditFocus service available free of charge to all UK small businesses, whether or not they are Barclays’ customers.

The service is backed by Experian and allows users to credit check and be regularly updated on the credit worthiness of up to five customers or suppliers.

The lender is also working with the Government to develop a Small Business Finance Scheme that will provide individual business loans from £1,000 to £1,000,000.

This will allow customers to benefit from the new European Investment Bank Scheme, which is providing £300 million of funding that can be accessed by banks for loans to SMEs.

According to a report in The Daily Telegraph, Barclays has already become the first UK bank to make use of the scheme, lending £200,000 to a family business that needs to relocate to larger premises.