In an attempt to better lend to small businesses, Lloyds Banking Group have announced they will increase their lending amounts by £1bn this year.
Not only this, but Lloyds will also allow their local managers to loan out £500,000 without central authorisation for new lenders, while increasing the amount available to existing ones to £1m. This comes amid concerns from the Government that banks aren’t doing enough when it comes to business lending.
Lloyds have set themselves a target of increasing their trade finance lending by a substantial 25% to support exporting businesses and to give 100,000 new companies a sure footing thanks to a new “SME Charter”.
Alasdair Gardner, the Commerical Banking managing director of the Bank of Scotland who are part of Lloyds Banking Group, said: “This new charter clearly sets out the pledges we are making to our customers. We will be fair and transparent in all of our dealings with our customers; and will provide broader support through our relationship managers and business specialists, as well as a growing number of business mentors.”
It was only last week that the economy committee of the Scottish Parliament said that new ways needed to be found to get credit to SMEs. They also raised concerns about a need for competition in the sector as RBS and the Bank of Scotland were responsible for 70% of all lending between them.