UK Manufacturing Finance: Know your options

Posted on 5 May 2020 by The Manufacturer

In the May issue of The Manufacturer we featured interviews with the senior manufacturing leads of Santander, NatWest, Barclays and Lloyds. But these banks represent only part of the story.

Here, we provide further detail on the new breed of so-called ‘Challenger Banks’ and Fintech start-ups that might provide an additional or alternative source of finance.

[See what the senior manufacturing leads of four of the ‘Big Five’ banks had to say]

From traditional lenders and challengers, to Fintech and more equity-based finance, there are a huge number of options and opportunities available.

With interest rates on the floor, money has never been so  cheap and despite all the uncertainty there is a strong argument for making bold and wide-ranging investment decisions now.

As of 5 May, there are three principal loan schemes that have been supported by the government:

BBLS (Bounce Back Loan Scheme) – up to £50k fully-guaranteed by HMG

CBILS (Coronavirus Business Interruption Loan Scheme) – up to £5m, aimed at business that turnover £45m or less

CLBILS (Coronavirus Large Business Interruption Loan Scheme) – up to £50m for business that turnover more than £45m

Various accredited lenders are providing these loans but the first piece of advice is always to start with your existing lenders.

For BBLS and CLBILS there are currently only 10 options – the ‘Big Five’ banks (Lloyds, Barclays, HSBC, NatWest, Santander) plus a few regionally-focused mainstream banks.

With CBILS the choice is far wider with more than 50 interesting and potentially more flexible providers. The intention is to expand the accredited lenders continuously.

The British Business Bank website provides a great research resource and is quick and easy to navigate. So if you are seeking finance and considering options, click here.

You can even use the filters to self-select by the type of finance you are considering and  your region – something  that could save you hours of wasted time applying to the wrong organisation, or one less likely to say yes!

*Header image courtesy of Depositphotos