Funding for Lending Scheme
During these difficult economic times, the Government has introduced schemes to help stimulate growth and improve lending. One such initiative was Project Merlin, where the major high street banks were given quarterly lending targets to meet however, this has now ceased.
The National Loan Guarantee Scheme was launched in March 2012 and again, this was aimed at improving lending to small and medium enterprises (SMEs) however, from the 1st August 2012, this was rescinded by the Government and a new Scheme introduced.
On the 1st August, the Government announced the introduction of the Funding for Lending Scheme (FLS) which will not only increase the amount of capital available to SMEs, it will also provide funding to the mortgage market for first-time-buyers, as well as second time homeowners
Five of the UK’s six biggest lenders have signed up to the Funding for Lending scheme, designed to stimulate the economy by making cheaper loans available to firms and individuals.
Only six of the UK’s 47 building societies have so far signed up
The Bank of England has released data showing the banks involved in the Funding for Lending scheme.
The banks involved can be seen below, and collectively account for 73% of lending to both UK households and corporates.
– Hinckley & Rugby Building Society
– Ipswich Building Society
– Kleinwort Benson
– Leeds Building Society
– Lloyds Banking Group
– Monmouthshire Building Society
– Nationwide Building Society
– Principality Building Society
– RBS Group
– Virgin Money
HSBC is the only one of the top six not taking part, as it says it does not need additional funding.
It uses deposits from retail customers to lend – although it said it had not ruled out signing up in the future
The Bank of England will release a league table of bank net lending each quarter to show how the banks have been performing since the launch of the scheme.
How it works:
The UK’s lending market is very competitive – and with support through schemes like the Finance for Lending Scheme for even lower cost borrowing, now is a very good time for UK businesses and individuals to speak to The Aftersales Network about their financing needs.
The Aftersales Network can work with you to get the funding & support you need for your business.
The Aftersales Network – “We’ll show you a Positive way forward”