Lloyds Bank launches £500m asset finance fund

Lloyds Bank Commercial Banking in the UK has launched a £500 million growth fund, which aims to help British businesses access the investment needed to boost productivity and growth.

The fund is aimed towards SME and mid-market companies that need to invest in high-specification machinery.

Its report, Understanding the Puzzle, also showed that the primary focus for firms’ investment plans was improving productivity.

Ben Stephenson, managing director SME at Lloyds Bank Global Transaction Banking, said: “The pace of technological change is constantly challenging important UK sectors to invest in growth to remain competitive.

“Businesses need to be able to achieve this without damaging their access to working capital. This fund will enable more businesses to benefit from the flexibility of asset finance, which can be used to support firms’ needs throughout the economic cycle.”

Gareth Oakley, managing director SME at Lloyds Bank Commercial Banking, said: “The UK’s low level of productivity compared with its G7 peers remains a challenge, and it’s crucial we work closely with businesses to ensure they have the tools they need to make efficiencies and grow.”

One business that has used asset finance to increase production is animal feed manufacturer Dodson & Horrell, which invested £3.5 million in automating its processes to create a single factory and distribution centre and now expects to double the size of its canine business within five years.