New Barclays cashback scheme to encourage SME investment

Barclays has announced that it is introducing a new cashback scheme for flexible asset finance, to encourage businesses to invest in vehicles, equipment, plant and machinery.

This has been facilitated by their participation in the ENABLE guarantee programme run by the British Business Bank, the UK-government-owned economic development bank.

The British Business Bank’s ENABLE Guarantee programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against such lending.

Barclays says it will use the capital benefits it derives from its participation in the programme to offer qualifying Small and Medium-sized Enterprises (SMEs) cashback on eligible asset financing, with the intention of stimulating SME demand for asset finance. This is the first time the capital benefits derived from the guarantee have been used by a high street bank to offer a cashback facility to business customers.

An initial £300m has been made available to enable more SME hire purchase and leasing, with companies benefiting from 0.25 per cent cashback on finance of over £10,000. Businesses with up to 250 employees and a turnover of up to c£44m are eligible to apply.

Another advantage is the flexibility of the asset finance borrowing that Barclays offers through its scheme. Both fixed and floating interest rate options are available, with a variety of funding terms possible, allowing businesses to select the product and lease profile that best fits their individual circumstances.

The process will be managed from end-to-end by Barclays’ specialist Asset Finance team, who are able to draw on their asset knowledge and expertise to provide a tailored approach to enquiries and improve speed of execution. The team will also assess existing clients’ eligibility and proactively share scheme information with them, ensuring that all qualifying businesses are able to access the programme and receive cashback.

Jamie Grant, head of corporate banking for Barclays in Scotland, said: “We want to help Scottish SMEs grow more quickly. By collaborating with the British Business Bank we can now offer cashback to clients, boosting their cashflow and encouraging them to invest in assets that will drive their business forward.

“Working with our asset finance specialists, the companies we support will be able to spread costs over a term to suit them, at a fixed or flexible interest rate. Rather than worrying about how to fund their growth ambitions, businesses will be able to focus on the important stuff - delivering improved goods and services to their customers across Scotland and the UK, as well as overseas.”

Patrick Magee, chief commercial officer, British Business Bank, said: “Our recent Small Business Finance Markets report found that asset finance is the most popular form of alternative finance used by smaller businesses, with only bank overdrafts and credit cards being used more frequently.

“Promoting this important type of finance will encourage more business investment in equipment, plant and machinery. This in turn will help UK smaller businesses achieve their growth potential. We are delighted to be working with Barclays so that many more growing businesses will be able to access such finance.”