Metro Bank could be set to help a number of small and medium-sized enterprises (SMEs) expand by supporting up to £100 million in lending.
The move was announced by business secretary Vince Cable, who said the partnership with the bank will assist a selection of companies in London and the south-east.
It will also involve RBS Natwest, which has agreed to promote Growth Accelerator, which is a service that pairs businesses with experts that can help them to figure out the best ways to overcome any obstacles on the way to expansion.
The bank will also lend more than £2.5 million to UK SMEs through the existing Funding for Lending scheme.
Mr Cable said: "GrowthAccelerator is designed to help these next generation businesses fulfil their potential. Getting access to finance on reasonable terms is crucial to their success which is why I am delighted with today's pledge by Metro Bank to provide up to £100 million of lending to eligible businesses signed up to GrowthAccelerator.
"It is good news for businesses that new entrants like Metro Bank are energising the market to support dynamic, fast-growing UK businesses.
“I also welcome RBS Natwest’s commitment to promote GrowthAccelerator (same) to its substantial SME client-base," he added.
Earlier this year, the business secretary announced plans to create a public-funded business bank to "release the strangehold of high street banks" and to help those organisations which struggle to find funding.
That came after the Federation of Small Businesses revealed that, over the summer, 42 per cent of SMEs who applied to access to finance were turned down, and therefore unable to expand or grow as a result.
Areas in which businesses sometimes encounter barriers to growth include accessing finance and developing leadership and management capability within their workforce.
At least 1,000 businesses have joined GrowthAccelerator since it was launched in May 2012.
David Gill, managing director of the St John's Innovation Centre noted that companies are more likely to do well if they have access to targeted coaching and advice, such as that supplied by the scheme.
If you're looking for a commercial insurance provider who works as hard as you do, then look no further than Premierline Direct; the first direct business insurance provider in the UK.
