Our lending charter

Sometimes it’s prudent to cut back on spending, especially when we’re all facing a challenging economic climate, but at Barclays we recognise that occasionally you have to spend money to make money.

That’s because we believe the best way for us all to fight our way out of recession and get things moving again is to invest in businesses like yours, so you can grow and boost the country’s economy. And we have an impressive track record too – with four out of five applications for business lending being approved ³.

But before we grant any loan, we need to be sure we’re agreeing the right type of lending for your business.

 

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Read more about our commitment to supporting businesses and how we are able to do it.

Sometimes you need something other than a standard bank loan to fit with your business plan, depending on what kind of investment you need, how your cash flow is structured and whether you can adequately back up your borrowing.

If a standard bank loan isn’t the right thing for your business, our Business Managers are fully trained to tell you about our range of financing options, including any relevant government funding schemes.

One such option is Enterprise Finance Guarantee, which acts as a guarantee for bank loans to small and medium-sized businesses who lack the necessary security for the finance they need. In fact, over a sixth of all loan offers made through the EFG have been made through Barclays.

Loans made through the EFG are available between £1,000 and £1 million, with a choice of fixed- or variable-rate interest. You choose your loan term – anything from three months to ten years – and you can even take repayment holidays, giving you complete flexibility should your business needs change.

We can also advise on other funding options, such as a loan from a Community Development Finance Institution (CDFI) or an angel investor group, which can lend you the capital to help your business when it needs it most.

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Learn more about the Enterprise Finance Guarantee scheme and other possible sources of outside investment and whether they might be right for you.

Getting the right interest rate on your loan can make a real difference when it comes to making your repayments and ultimately clearing your debt.

At Barclays, we offer a range of interest types which all come with their own various benefits. You could take advantage of the UK’s current low interest rate with one of our base-linked loans, which tracks independent Bank of England decisions.

Or if you prefer the security of knowing exactly what your repayments will be so you can manage your cash flow more precisely, you could opt for one of our fixed-rate loans. With a set rate of interest, you’ll be able to budget accordingly without the risk of a sudden sharp rise in repayments should the interest rate go up.

Or if you have a business mortgage, you could choose a capped rate, which offers the best of both variable and fixed-rate deals by tracking the base rate until it reaches a set limit.

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Find out more about our different interest types and commercial mortgages , plus how we set our interest rates and which rate might be best for you.

Even the best-run business can face unexpected difficulties, such as the loss of a major customer or a supplier’s business failing.

But as long as there’s a sound business proposition at the heart of the company and a strong management team we’re confident we can help your business on the road back to success.

We understand that every business – and every problem – is unique. That’s where Barclays Business Support unit comes in. As the bank’s ‘intensive care unit’, our specialised team can help with providing additional financinge, if appropriate, during the turnaround process. But more importantly, they bring a fresh perspective and a wealth of experience to help you work out how to get help your business in recovery.

The skill of Barclays Business Support managers lies in working with your existing Business Manager and, most importantly, with you, to identify and address the most significant issues facing your business. So successful is the unit that more than 80% of the customers they have worked with have successfully turned things around.

What next?

If your business is facing difficulties and you could use the specialist skills of Barclays Business Support unit, speak to your Barclays Business Manager .

If you’re struggling to get a loan, it could be down to your credit rating. If this is the case, we can help you with some simple actions to improve your credit profile. For example:

• Balancing the level of equity, capital and debt in your business
• Structuring your debt so that your cash flow covers all your commitments
• Ensuring loan payments are made on time and that you keep within agreed overdraft limits

Sometimes a poor credit rating can be down to late payments or bad debts from customers or suppliers. That’s why we developed CREDITFOCUS, our online credit-management service.

Aimed at businesses with a turnover of less than £1m, CREDITFOCUS helps its users to check and monitor the credit risk of their customers and chase their late payers with debt recovery letters.

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Find out more about whether CREDITFOCUS could help you improve your cash flow and if you think it could benefit your business, why not try it for free for just £15 per month + VAT (£10 per month + VAT if you’re a Barclays business customer)?

We’re not just here to lend you finance when you need it. There’s a huge range of services and tools available on barclays.co.uk to help you run your business through the good times and the bad, from software solutions and seminars to expert consultations and training.

Plus last year, our 'Let's Talk' programme of free seminars helped more than 7,000 pre-start-up and 5,500 existing business with face-to-face training.

So whatever you need to get your business growing, we’re here to support you – with money, with service and with skills.