HSBC supporting small business investment with interest-rate matching and reduced fees
HSBC has reaffirmed its commitment to support and lend to UK small businesses through launching a competitor interest rate matching initiative and reducing business overdraft fees.
Available until the end of October, HSBC will match the interest rates being offered by competitors on fixed-rate small business loans and business overdrafts up to £25k. This includes the interest rates offered by any other UK lender, including high-street and challenger banks, fintech firms and crowdfunding websites.
The initiative is available to eligible businesses with an existing competitor facility or a competitor offer to lend. Applications can be made through Business Telephone Banking or by visiting a HSBC branch.
HSBC has also reduced its minimum arrangement and renewal fees for business overdrafts from £100 to £25 – the cheapest fee offered by any other major UK high-street bank. The new fees will be available to customers from 20 July.
James Cliffe, head of business banking, HSBC, said:
“Through matching competitor interest rates and reducing fees our customers should feel more confident about their finances, which will allow them to spend more time on what is most important – investing in and growing their businesses.”
The interest rate initiative and fee reductions are just the two latest examples of HSBC’s commitment to support small businesses across the UK.
In March, HSBC launched an informal overdraft text alert service that would notify and then give business customers the opportunity to credit their account by the end of the day to avoid paying informal overdrafts fees and interest. Since being introduced on March 14, HSBC has issued more than 250,000 business overdraft text alerts.
In April, HSBC then launched its largest ever package of support for SMEs with a £10bn lending fund, giving ambitious businesses across the UK the ability to access more funding to help them grow.
This commitment to boost lending and support small businesses hasn’t changed since the EU referendum, with James Cliffe adding:
“As one of the largest, most stable, liquid and prudent financial institutions in the world, we can support our customers as they deal with any challenges that may arise. Our commitment to UK SMEs is undiminished and we will continue to support the investment and growth ambitions of our customers. It’s very much business as usual for us and our customers.
“As part of this, we continue to approve more than 85% of SME lending applications and recently launched a £10bn fund to support SMEs across the UK. This fund underpins our support by putting SMEs in a stronger position to be making investments, whether they are a start-up or established business, focused either on the domestic market or looking to trade internationally.”
Businesses with strong growth ambitions can now check their eligibility for lending of up to £30k in under two minutes, via HSBC’s Business Lending Eligibility Checker online.