In July 2012, the bank received the first installment of £1bn, out of total £9.4bn funding for which it is eligible, which enabled the bank to slash rates across its range of business banking products.
With an aim to ease cash flow for businesses and in accordance with the Government’s review into the benefits of Supply Chain Finance, the bank will start a supply chain finance initiative, to free-up billions of pounds of working capital for SMEs.
The supplier can get payment within few hours after invoice approval by the buyer, directly from buyer’s bank, under supply chain finance scheme.
Apart from free-up working capital, this program can help to lessen the need for short-term funding including overdrafts, particularly during periods of constricted cash flow.
The bank is already supporting over 1,000 suppliers and with the enhanced limit, it aims to include 3,000 additional suppliers, thus enabling them to protect jobs and provide reliable, secure access to cheaper finance.
Santander Corporate and Commercial Banking is a part of Santander UK, which serves 25 million customers, and manages more than 1,300 branches.
