Barclays Entices SMB Investments With Cash Back Program

U.K. bank Barclays is encouraging small businesses (SMBs) to invest in new equipment, machinery, vehicles and other assets through a new cash back program, according to reports in The Financial on Friday (July 6).

Barclays is launching a new cash back scheme for small businesses as part of its participation in the British Business Bank‘s (BBB) ENABLE guarantee program, designed to increase lending to the small business community by reducing capital requirements for borrowers. With its participation in the BBB’s program, Barclays will offer a cash back program for small business borrowers of its asset finance offering.

According to reports, Barclay’s initiative marks the first time for a top lender to use the guarantee program to provide a cash back facility for businesses. At its launch, the program will have nearly $400 million available to SMBs and offer 0.25 percent cash back on financing of more than $13,270.

British Business Bank Chief Commercial Officer Patrick Magee said in a statement, “Our recent Small Business Finance Markets report found that asset finance is the most popular form of alternative finance used by smaller businesses, with only bank overdrafts and credit cards being used more frequently. Promoting this important type of finance will encourage more business investment in equipment, plant and machinery. This, in turn, will help U.K. smaller businesses achieve their growth potential. We are delighted to be working with Barclays so that many more growing businesses will be able to access such finance.”

“By collaborating with the British Business Bank, we can now offer cash back to clients, boosting their cash flow and encouraging them to invest in assets that will drive their business forward,” said Karl Nolson, Head of Global Lending Group at Barclays Corporate Banking, who added that loans are offered with a fixed or flexible interest rate. “Rather than worrying about how to fund their growth ambitions, businesses will be able to focus on the important stuff — delivering improved goods and services to their customers in the U.K. and overseas.”