"Small businesses are the backbone of the British economy and it’s vitally important at this time that we not only look after our business customers, but also our supplier partners. "
TSB is offering to support its 100,000 business customers with a package of measures in response to the coronavirus outbreak.
The Bank already launched a Lending Pledge in 2019 which gives customers 'reasonable time' to return their business to health.
During this time, TSB pledges not to raise loan margins on existing facilities if a business enters into financial difficulty and not to default a business if it is up-to-date on its loan payments, but a valuation change impacts a covenant.
Additionally, all of TSB's smallest suppliers will now be paid within just 10 days of invoicing the bank. The move will apply to all companies that supply goods and services to the bank, even if the contract allows it to pay over a longer period. TSB says the move is designed to provide cash flow certainty for small suppliers.
It has also pledged to write a 30 day guarantee into all supplier contracts going forward, as a further commitment to the UK businesses it works with in the future. Where possible, the bank will seek to pay suppliers even sooner than the 30 day period.
TSB says it is also reaching out to all small suppliers to discuss specific challenges they face.
Robin Bulloch, customer banking director at TSB, said: “Small businesses are the backbone of the British economy and it’s vitally important at this time that we not only look after our business customers, but also our supplier partners. By speeding up how we pay suppliers they can maintain income and cash flow allowing them to focus on helping us serve TSB customers even better.”