It is part of a broader £15bn lending fund to support small- and medium-sized enterprises across the UK
HSBC UK has launched a £500m fund today for franchise businesses, as part of its commitment to help British businesses to innovate, thrive and grow in the UK and internationally. The fund is part of a broader £15bn lending fund to support small- and medium-sized enterprises across the UK.
Gillian Morris, head of franchise, HSBC UK, said: “Franchisees make a significant contribution to economies across the country, driving employment, local wealth and growth. With 93 per cent of franchisees being profitable, according to the bfa, it is a great route towards expansion for established, successful businesses, as well as start-ups, looking to grow and is vital to the UK’s collective recovery and £500m lending fund will help more businesses to access finance and support businesses to grow.”
With franchisees contributing a significant £17.2bn per annum to UK GDP, according to the bfa, and employing 710,000 people, they are vital to the UK’s collective recovery. Franchising can provide a capital-efficient and lower-risk way of starting a business.
HSBC’s customers are also thinking about growth via investment, acquisitions and capital expenditure. Whilst concerns about the broader market remain, businesses are ready to grow and are confident about prospects for their own businesses, with the biggest areas of opportunity for growth in sustainability (12 per cent) and digitisation (11 per cent).
Its dedicated franchise team provides specialist knowledge and support focusing entirely on the industry. Franchisees benefit from a central helpdesk, offering advice and liaison with local banking managers. Funding of up to 70 per cent of start-up costs is available for franchisees joining an established network.
Since launching the SME Fund in 2014, HSBC has lent more than £90bn to UK SMEs as part of its commitment to help British businesses to grow in the UK and internationally.