Barclays introduces SME cashback scheme

Barclays has introduced a cashback scheme for SMEs.

Barclays is introducing a new cashback scheme for flexible asset finance. The idea is to encourage businesses to invest in vehicles, machinery and equipment.

This is possible due to their participation in the ENABLE guarantee programme run by the British Business Bank, the UK-government-owned economic development bank. The British Business Bank’s ENABLE Guarantee programme helps banks to increase their lending to smaller businesses by reducing the amount of capital required to be held against such lending.

When talking about the scheme, Jenny Tooth, CEO of UK Business Angel Association, believes this is a major new commercial investment programme to stimulate new business: “There is a wealth of experience out there that angels possess, and I hope that programmes like this encourage more experienced angels, particularly in the regions, to support SMEs.”

Barclays will use the capital benefits it derives from its participation in the programme to offer qualifying SMEs cashback on eligible asset financing, with the intention of stimulating SME demand for asset finance. This is the first time the capital benefits derived from the guarantee have been used by a high street bank to offer a cashback facility to business customers.