Lloyds Bank has launched a new asset finance fund to help businesses improve productivity by investing in high-spec technology and equipment.
The £500 million fund is primarily aimed at SMEs and mid-market businesses in manufacturing, construction, agriculture and transport sectors, where equipment upgrades are often too expensive for in-house investment.
According to Lloyds Bank’s own research, inadequate investment in new machinery is one of the key obstacles preventing businesses in these areas from improving their productivity.
The asset finance will allow companies to invest in new business-critical machinery and innovations, such as automation, vehicles and ultra-efficient equipment, by spreading the cost over their lifetime.
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. But businesses need to be able to achieve this without damaging their access to working capital.
“This fund will enable more and more businesses to benefit from the flexibility of asset finance, which can be used to support firms’ needs throughout the economic cycle, whether that’s investing in growth or boosting efficiency.”