Santander acts to back SMEs

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SANTANDER is increasing its support for small businesses through finance raised in the UK government’s Funding for Lending scheme.

The Spanish-owned bank accessed the first £1 billion tranche of the £9.4bn it is eligible for from the scheme in July.

The funding has enabled the bank to reduce rates across its range of business banking products.

It is also rolling out a supply chain finance initiative, with the potential to free-up billions of pounds of working capital for smaller suppliers.

Supply chain finance enables a supplier to benefit from faster payment times from buyers by receiving payment direct from its buyer’s bank. This can help reduce the need for short-term funding such as overdrafts, particularly during periods of constricted cash flow.