Steven Mugglestone

The more I learn, the less I know

Bank lending for businesses – January Sale Ends Soon!

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Contact us to help with this offer, before they fly off the shelves

We have been contacted by a leading high street, commercial and corporate bank with information about the special lending fund that they currently offer for new lending to SME businesses.

The first tranche of this became available in November and December 2012 and that was fully (and quickly) taken up.  There is now a second tranche for growing SME business in need of finance, available until 31 March 2013 and we are sure that it will be of interest.

Headline Discount

The headline details are that that it is a 1% margin discount for 5 years (although the loan may be for a longer term).  The loan must be a minimum of £250k.  There are no catches, the standard fees and other conditions apply, but the loan must be drawn by the end of March 2013 and therefore this needs to be discussed with potential businesses sooner rather than later.

Headline Rates

As an example, for context, we have been provided with a few possible rates.  These rates reflect low risk (profitable and well secured) but are genuinely achievable:

  • A Manufacturing business borrowing £0.5m over 15 years – a rate of 1% over base would apply rising to 2% over base after 5 years.
  • A Haulage business, a rate of 1.56% over base would apply (1.26% if the loan was for just 5 years) rising by 1% after 5 years.
  • A Real Estate is a little more expensive, but a Property investment loan on a relatively low (loan to value) LTV could attract a rate as low as 2.4% over Base for a 15 year loan, rising to 3.4% if not repaid after 5 years.

We know that many banks state that they are open for business, but few appear to back that up with real new lending.  We know that the bank team that we are dealing with has increased its lending balances by 10% in 2012 and their Commercial Division (sub £15m Turnover) lending was up 4%, when the industry is generally perceived to be down by 4%.

This is achieved with a leading bank which does have exceptional Relationship Management support, as well as many other factors to help growing businesses.

Contact us for help

Please do contact us to help any SME in the Midlands regions with this.  For now, however, we just wanted to get these eye catching rates in front of you before they “fly off the shelf”.

Steven Mugglestone BA FCA
FD Services

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Leicester                 0116 233 8500
Nottingham           0115 941 5193
Birmingham          0121 236 3317


Written by Steven Mugglestone

January 8, 2013 at 9:43 am

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