HSBC launch their latest significant financial support for the country’s SMEs.
HSBC’s ongoing support for the UK franchising industry has been further boosted by the news that the global banking giant has made available an extra £500m of funding for businesses across the country.
Since launching their UK SME Fund in 2014, HSBC has loaned over £90bn to franchise businesses as part of its commitment to this specialised but valuable sector of the British economy. This sizable pot of money is part of a broader £15bn lending fund which supports small and medium-sized enterprises (SMEs) throughout the UK.
Gillian Morris, HSBC’s Head of Franchise in the UK, said: “Franchisees make a significant contribution to economies across the country. It drives employment, local wealth and growth. With 93% of franchisees being profitable – according to the British Franchise Association (BFA) – this fund will help ambitious businesses to expand.
“This fund is available for established, successful businesses, as well as start-ups that are looking to grow. We believe this £500m is vital to the UK’s collective recovery, providing a route for businesses to access crucial funds.
“This additional money will support regional economies, provide new employment opportunities and drive growth both in the UK and internationally.” According to the BFA, franchisees contribute a significant £17.2bn per annum to the UK’s Gross Domestic Product (GDP), while employing over 700,000 people.
Gillian added: “Franchising can provide a capital-efficient and lower-risk way of starting a business. While concerns about the broader market remain, businesses have told us that they are ready to grow and are confident about doing so. The biggest areas of opportunity for growth are in sustainability (12%) and digitisation (11%).
“Our dedicated franchise team provides specialist knowledge and support. We know that franchisees benefit from a central helpdesk which offers advice. Our helpdesk staff members are always liaising with local bank managers too. Funding of up to 70% of the start-up cost is available for franchisees that join an established network.”
About HSBC UK:
HSBC serve approximately 14.75m customers across the UK, supported by 24,000 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers. They also serve those in the commercial sector, ranging from small and medium size businesses, to large corporations.