Barclays has announced the launch of a new cashback scheme for term loans to eligible SME borrowers in the UK. Backed by a £450 million ENABLE guarantee from the British Business Bank, the scheme is the largest of its kind to launch in the UK.
The ENABLE programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against it.
One of the key benefits for customers is that Barclays will offer qualifying SMEs cash back on eligible lending, with the intention of supporting small business growth in the UK.
Businesses with up to 250 employees and a turnover of up to £43 million are eligible to apply.
Tasnim Ghiawadwala, Head of UK Corporate Banking, said the announcement “further demonstrates our commitment to businesses across the UK who represent the core of our economy”, adding: “We’re offering practical and attractive ways for firms to access the capital they need to help them grow and prosper, and at the same time, we have been able to further strengthen our partnership with the British Business Bank.”
British Business Bank CEO Keith Morgan, said: “Term loans are an essential part of the finance landscape for smaller UK businesses, enabling them to make larger longer-term purchases of business assets such as computers, plant and machinery, and vehicles. We are pleased to be working with Barclays to help businesses access the finance they need to grow and thrive.”
The initiative was also welcomed by Small Business Minister Kelly Tolhurst. She said: “This is a fantastic initiative from Barclays and the British Business Bank. I would encourage other lenders to take advantage of the guarantees for lending on offer from the government-owned British Business Bank, so we can work together to help our brilliant businesses unleash their potential.”