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Tue November 24 2020

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Banks stump up for Carillion crisis package

19 Jan 18 Three High Street banks have set aside £225m to help small businesses hit by Carillion’s liquidation.

Lloyds Banking Group has set up a £50m emergency fund for Carillion subcontractors and suppliers, RBS has made £75m of assistance available and HSBC has put aside £100m to help.

Lloyds said that its fund would provide a range of support for customers, including waiving upfront arrangement fees on overdrafts and invoice finance facilities to existing customers; and offering capital repayment holidays on existing loans for the most severely impacted customers, it said.

The Lloyds fund is designed to support the working capital needs of small businesses within Carillion’s supply chain that may now be experiencing financial difficulty. It will provide them, subject to credit approval, with arrangement fee-free overdrafts and, for the most severely impacted customers, with capital repayment holidays on loans for an initial six month period, to help with cashflow shortages caused by the liquidation.

Jo Harris, managing director, of Lloyds Business Banking, said: “Small businesses don’t normally have the cash reserves that larger businesses do, so any interruption to their cashflow can have a significant impact on their ability to survive. By supporting our small business customers during this difficult time, we hope we can help as many businesses as possible to get back on an even keel as quickly as possible.”

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