Cambridge & Counties Bank, a specialist UK lender based in Leicester, will waive the documentation fee for all asset finance deals drawn under a credit line for the next three months.
As part of a campaign to encourage businesses to invest in new capital expenditure and benefit from its £1m annual investment allowance for qualifying purchases, business customers will no longer need to pay a £200 documentation fee each time they down from a pre-agreed credit line.
Under the promotion, if a customer takes a credit line for £500,000, they will be able to draw down individual amounts, such as £100k or £250k, during the three-month period without paying any documentation fees.
In November 2020, HM Treasury announced the extension of its £1m tax break to stimulate investment in UK manufacturing.
Businesses, including manufacturing firms, are able to claim up to £1m in same-year tax relief through the Annual Investment Allowance (AIA) for capital investments in plant and machinery assets until 1 January 2022. The extension of the temporary £1m cap was originally due to revert to £200,000 on 1 January 2021.
Simon Hilyer, senior business development manager at Cambridge & Counties Bank, said: “Our highly competitive credit line facility is ideal for businesses wanting to benefit from the £1m AIA provided by the government until the end of 2021.”
Credit lines are useful for SMEs and business owners searching for cost-effective and quicker access to funding.
Hilyer continued: “Credit lines can be a compelling solution for many businesses, helping to fund expansion plans following a difficult 12 months or to release finance locked into fixed assets, providing a cash flow injection among other benefits.”
The proposition, which also ran in early 2020, has garnered success in the past. Hilyer previously commented: “Our last campaign showcased the competitive nature of our products” and the proposition was “welcomed” by partner introducers.
Deviating from the industry norm, Cambridge & Counties Bank completes the agreement documentation on behalf of brokers, saving significant time and effort for them and their clients.
Cambridge & Counties Bank offers a variety of asset finance solutions across the UK. The bank’s asset finance suite enables SMEs to invest in business-critical assets such as vehicles, construction equipment, plant and machinery, cranes, and CNC machinery.