Lloyds Bank confirmed this week that it is on course to beat the £1bn figure it set as part of its Manufacturing Commitment scheme last September.
The banking giant pledged additional lending to the British manufacturing sector over a 12 month period, and confirmed in its six month update that it has already lent £700m to a number of companies.
The Commitment also applies to the Lloyds Funding for Lending offer of up to one per cent reduction in the interest rate for new business loans. This is for the full term of the loan to businesses of all sizes.
David Oldfield, head of SME and Mid Market Banking at Lloyds Banking Group said: “The manufacturing sector is a vital sector to the UK economy and we launched our £1bn commitment to further support economic growth and jobs that this sector creates.
“We have already seen a great appetite from manufacturing businesses that want to invest and expand even in these uncertain times.”
Mr Oldfield, who highlighted manufacturing making up nine per cent of the UK’s GDP as an illustration of its importance in aiding any recovery, believes the initiative proves his institution’s commitment to helping the economy.
“Our competitive rates have resonated well with these businesses and we are confident that the strong pick up we have witnessed so far will continue over the course of 2013,” he said.
Other initiatives launched by Lloyds since last year have included a Mid Market Charter to address the needs and demands of clients with an annual turnover of between £15m-£750m.
Lloyds have also trained 100 Relationship Managers in conjunction with the University of Warwick Manufacturing Group, aimed at increasing understanding towards the challenges facing the manufacturing sector.