HSBC UK has committed £500m of business funding to help boost resilient British franchises navigate current financial challenges and adapt for future growth.
Research by HSBC UK reveals that a third (36%) of UK businesses plan to adapt their strategies to navigate financial challenges over the next six months.
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 £17.2bn per annum to UK GDP according to the British Franchise Association and employing 710,000 people they are vital to the growth of the UK economy.
HSBC said franchising can provide a capital-efficient and lower-risk way of starting a business and that customers of the bank are 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.
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.
Gillian Morris
“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.”
The franchise team at HSBC UK provides specialist knowledge and support focusing entirely on the sector. Franchisees benefit from a central helpdesk, offering advice and liaison with its local banking managers.
‘Cost of Living’ challenges
HSBC UK funding 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 a specialist financial support team for customers showing early warning signs of financial difficulty.
Kevin Hollinrake MP, Department for Business and Trade, 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.”
Businesses can learn more about HSBC UK’s dedicated business support here.
Posted: 1st June, 2023