A ready and reliable supply of working capital is critical for any businesses at any time and a close relationship with a supportive banking partner can play a significant role in ensuring you can access a full range of funding options.
Whether an injection of capital is required to improve liquidity or seize expansion opportunities, Lloyds TSB commercial can provide a number of funding solutions alongside traditional loans and overdrafts, such as the European Investment Bank (EIB) loan and the Enterprise Finance Guarantee (EFG).
Funds of £250 million have been made available to Lloyds TSB through the EIB, enabling firms to obtain a standard fixed or base rate loan with a 0.8% interest rate discount.
Under the initiative, SMEs can borrow up to €12.5 million to fund a project made up of tangible and intangible elements either in the UK or in the EU within three years of the finance being made available.
However, if you are a new venture or a company that may not have the assets to back a traditional borrowing request, Government-backed EFG loans may be more suitable.
Under EFG, the government will guarantee lending to viable businesses and support bank loans to UK firms with a turnover of £25 million.
For firms looking to quickly boost cash flow, asset based lending (ABL) from Lloyds TSB Commercial Finance, the ABL division of Lloyds TSB, may be an ideal solution.
By releasing the value locked in existing assets such as firm’s sales ledger, plant, property or stock, ABL is an effective way to quickly inject funds into a business.
Whichever financial package is most appropriate for your business, it is important to remember that lenders are looking for a strong management team and a sound business plan that demonstrates how the investment supports the long-term strategy of the firm.
Source: The Journal
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