This month HSBC launched an \u00a38billion fund which will specifically help finance the UK\u2019s small and medium-sized enterprises (SMEs).<\/p>\n
The bank has said that the pot of cash will be a major help to those looking to start a new business, with financial support also available for existing companies. The fund will be allocated in 43 tranches nationwide.<\/p>\n
London is set to get the lion\u2019s share of the funding; \u00a32.1billion will be allocating to support the capital\u2019s smaller firms.<\/p>\n
Birmingham, Manchester, West Yorkshire and Scotland may not receive a sum on quite that scale, but can nonetheless look forward to a handsome \u00a3400million each.<\/p>\n
James Cliffe, HSBC\u2019s head of business banking, said the increased risk of lending to start-ups ‘would not preclude’ the bank from offering help.<\/p>\n
\u201cIf we are presented with a viable proposition, and we have confidence in the management and the cash flow projections, then yes, we will fund it,\u201d he said.<\/p>\n
\u201cWhat it comes down to is having demonstrable cash flow because we lend against cash flow. What we aren\u2019t is equity providers and equity providers will lend against a concept or an idea and a concept or an idea doesn\u2019t have a proven cash flow.<\/p>\n
\u201cSo if people have equity needs they should be talking to business angels or a start-up loan company that the government has backed. We as a high street bank can support businesses with demonstrable cash flow and help them grow.\u201d<\/p>\n
The fund has been announced at a time when politicians are being urged to make sure that SMEs can access the finance they need over the course of this Parliament.<\/p>\n
Many believe that new Business Secretary Sajid Javid will have a hard time following his Liberal Democrat predecessor Vince Cable, who was widely praised for his work supporting smaller firms.<\/p>\n
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