Price is not the only factor to inhibit access to finance: Santander is looking at other ways it can help businesses ease cash flow and secure the confidence they need to invest and grow.
Following the government’s review into the benefits of Supply Chain Finance, Santander announced their new supply chain initiative: asset finance, with the aim to free-up billions of pounds of working capital for smaller suppliers.
The bank asset finance will make an additional £500m available to companies looking to use credit or leasing facilities to finance the purchase of business assets. This includes equipment such as plant and machinery, construction equipment or vehicles.
Asset finance enables companies to fund new investment without impacting credit ratings and other lending schemes. Payments can be structured around the life of the equipment enabling more effective budget management and freeing up cash flow. In recognition of the value this type of funding can have for smaller firms, Santander is offering a discount of 100 bps on its traditional asset finance products.
Ana Bot?n, CEO of Santander UK, explained: By coupling this with an increase in asset finance and our continued drive to increase SME lending, we want to give smaller companies three of the things we believe they need to prosper during challenging economic conditions: certainty of payments; control of their working capital; and reduced costs.