Santander acts to back SMEs

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.

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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.

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