Lloyds Banking Group has launched an asset
finance offer under the government’s Funding for Lending Scheme
(FLS), branded Lloyds Funding for Lending.
The offer, which aims to reduce borrowing
costs for SMEs and mid-market companies, follows Lloyds’
participation in the National Loan Guarantee Scheme (NLGS) where
the bank allocated £1.4bn of government cash to SMEs.
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The scheme, available to businesses operating
in any sector, will offer a one percent reduction in the interest
rate for new business loans and hire purchase deals for the full
term of the lend, and will be available on a minimum loan amount of
£1,000 with no maximum.
Mark Stokes, managing director of Mid Markets
at Lloyds Wholesale Banking & Markets division, said: “SME and
mid-market businesses are vital to the future growth of the UK
economy and that is why we are committed to passing on the full
benefit of reduced funding costs to them so as to support their
growth and investment plans.”
The FLS, which allows UK banks to borrow from
the government at a reduced rate on the condition the funds and
savings are passed on to businesses through credit, has
come under some criticism from the UK leasing community as,
similarly to the NLGS, it is not available to non-bank lenders.
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