£500M SME FUND LAUNCHED TO SUPPORT FRANCHISEES ACROSS THE UK

HSBC UK has launched a £500 million 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 £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK. Supporting regional economies, employment opportunities and driving growth.

With franchisees contributing a significant £17.2 billion per annum to UK GDP according to the British Franchise Association (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 have told us they are also thinking about growth via investment, acquisitions and capital expenditure. Whilst concerns about the broader market remain, businesses have told us that they are ready to grow and are confident about prospects for their own businesses. With the biggest areas of opportunity for growth in sustainability (12%) and digitisation (11%),

Our 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% of start-up costs is available for franchisees joining an established network.

Since launching the SME Fund in 2014, HSBC has lent more than £90 billion to UK SMEs as part of its commitment to help British businesses to grow in the UK and internationally.

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% of franchisees being profitable, according to the bfa, it is a great route towards expansion for established, successful business, 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.”