HSBC has committed a further £500m of funding to boost the nation’s franchising businesses. This is the latest support package announced by the global bank, and is aimed at helping British franchises navigate the current financial challenges.
According to the British Franchise Association (BFA), franchisees contribute more than £17bn per annum to the country’s GDP, while employing 710,000 people. And this recent announcement by HSBC will hopefully assist franchise businesses to plan for the future.
The decision to make another £500m of funding available was taken following research by HSBC which highlighted the resilient nature of British businesses. According to research data, 29% of businesses admitted having to adapt their strategies – over the past five years – in order to survive, with 12% reporting increased profits.
Other interesting statistics to emerge included the message that one in five (20%) companies feel optimistic that their businesses will improve. However, 22% revealed that the current challenges have had a negative impact on their businesses, and were causing greater problems than they had suffered during the height of the Covid pandemic.
Over one-third (36%) of businesses said they were planning to adapt their strategies during the next six months, as they seek to overcome the current financial challenges. And this latest HSBC funding initiative has been introduced to help these companies navigate any ‘choppy waters’ that their businesses may encounter over the coming weeks and months.
HSBC’s UK franchise team will continue to support the growing industry, via their central helpdesk. Franchisees that make contact with the helpdesk will be offered advice from HSBC’s specialist team who will also liaise with local bank managers.
Gillian Morris, Head of Franchise at HSBC UK, said: “Our £500m lending fund will help more businesses to access finance. Franchisees make a significant contribution to the UK economy, driving employment and local growth. Our dedicated franchise unit can offer franchisees greater insight into the industry and build confidence, even during the current challenging business environment.
“We have committed to a comprehensive programme to support SMEs. This funding is part of a broader package of support for small and medium-sized enterprises (SMEs), many of whom are struggling during the cost of living crisis.”
Kevin Hollinrake MP, who is a member of the Department for Business and Trade, added: “Our SMEs are vital to our communities, creating jobs and opportunities, and they have shown great resilience in the face of challenging circumstances.
“The Government is helping more businesses to access the finance they need to start, scale and grow. It is great to see that HSBC are doing their bit to back business, thanks to their SME lending fund and other support services.”
Companies can learn more about HSBC’s dedicated business support by clicking here.
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 customers. They also serve those in the commercial sector, ranging from small and medium size businesses, to large corporations. This latest £500m fund, which has been set aside to assist the franchising industry, is part of an overall £15bn package of support for SMEs.
About HSBC Holdings PLC:
Is the parent company of HSBC with headquarters in London. HSBC serves customers worldwide from offices in 62 countries and territories, covering Europe, Asia, North America, Latin America, Middle East and North Africa. With assets of US$2,990bn (at March-31st-2023), they are one of the world’s largest banking and financial services organisations.