Some hope was extended to the UK’s cash starved businesses today as HSBC announced the launch of a new $5bn global credit fund.
The bank, which has fared better during the credit crunch than some of its high street rivals, has earmarked £1bn of the fund for small and medium businesses in the UK.
The fund, which the bank says is new money, is designed to supply working capital to help businesses with their cash flow needs and for investment in international trade.
HSBC says the money will be ‘allocated on a case-by-case basis using its normal lending criteria’.
“This new £1 billion for 2009 shows we’re open for business,” said Paul Thurston, HSBC UK managing director. “It’s a tough business environment and we want to support our customers, whose continued growth will provide a stimulus to restore the UK economy.”
The move was praised by business lobby groups, such as the Confederation of British Industry (CBI) and the chancellor Alastair Darling.
“Small and medium-sized enterprises are the lifeblood of the economy,” said Richard Lambert, Director-General of the CBI.
“So it’s good to see that our major banks are coming up with innovative ways of supporting them as we move into another challenging year in 2009.”
© Crimson Business Ltd. 2008