RESILIENT UK BUSINESSES ADAPT FOR FUTURE GROWTH, AS HSBC UK COMMITS TO £500m FRANCHISE FUNDING BOOST

HSBC UK has committed £500m of business funding to help boost resilient British franchises navigate current financial challenges and adapt for future growth.

A third (36%) of UK businesses plan to adapt their strategies to navigate financial challenges over the next six months, new research from HSBC UK reveals[1].

The findings demonstrate how resilient UK businesses are with 29% stating that they had to adapt their business strategy over the past five years to survive – and 12% said this adaptation enabled them to increase their profits.

One in five (20%) businesses feel optimistic that business will get better, despite a similar figure (22%) reporting that the current challenges were having a worse impact on their business than the COVID-19 pandemic.

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 growth of the UK economy.

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 report that they are ready to grow and are confident about their future prospects.

HSBC UK’s 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.

Gillian Morris, Head of Franchise, HSBC UK said:

“HSBC UK’s £500m lending Fund will help more businesses to access finance and support businesses to grow.

“Franchisees make a significant contribution to the UK economy, driving employment and local growth. Our dedicated franchise unit can offer franchisees greater insight into the industry and build confidence, even in a challenging business environment.”

HSBC UK has committed to putting a comprehensive programme in place to support SMEs. The fund is part of a broader package of support for small and medium-sized enterprises (SMEs) that may be struggling with Cost of Living challenges.

This includes a broader £15bn fund, Cost of Living customer webinars, a new Financial Worries and Wellbeing Hub and support from HSBC UK’s specialist financial support team for customers showing early warning signs of financial difficulty.

Business and Trade Minister Kevin Hollinrake commented:

“British SMEs are vital to our communities, creating jobs and opportunities, and they have shown great resilience in the face of challenging circumstances.

“Through the British Business Bank, the Government is helping more businesses to access the finance they need to start, scale and grow. It is great to see HSBC doing their bit to back business through their SME lending fund and other support services.”