HSBC Equipment Finance has completed its first
asset finance deal through the UK government’s Regional Growth
The leasing arm of HSBC helped electronic
manufacturer Wrekin Circuits to purchase production machinery with
additional funding from the government’s small business grant.
Under the arrangement, HSBC is providing
funding of £84,000, with the RGF providing £21,000 to purchase an
industrial drilling machine.
The investment will result in new jobs being
created over the next two years. One position has already been
created to operate the new machine and further roles are expected
to arise due to increased levels of business.
In order to qualify for RGF, a £2.4bn scheme
operating across England from 2011 to 2015, a business must be able
to demonstrate it will create additional employment, have a
turnover of less than €50m and that the asset purchase would not go
ahead without RGF support.
HSBC has agreed to facilitate £25m from the
fund to support SMEs in the purchase of assets such as machinery
and vehicles in order to grow through its Assisted Asset Purchase
The scheme enables qualifying businesses to receive additional
funds of up to £500,000, £25,000 for each additional full-time
position created, to put towards the acquisition of assets, which
would not be funded under normal commercial terms.
Roy Harris, HSBC regional commercial director
for the Midlands, said: “HSBC is committed to supporting strong
viable businesses and the Assisted Asset Purchase Scheme highlights
this. The scheme provides critical support for businesses that are
looking to grow and recruit, enabling them to purchase the assets
they need, to achieve their goals.”