Firms in the leisure sector are being offered fee-free loans from a new £150 million fund launched by NatWest and Royal Bank of Scotland.

The loans come with two six-month capital repayment holidays allowing breathing space for investment and contingency planning.

The fund’s launch follows research by the banks showing that one in four leisure businesses feel they are losing out due to a lack of investment. The research, which surveyed SMEs across the sector, showed 30 per cent of respondents felt they did not invest sufficiently in 2012 to remain competitive, while 55 per cent feel investment in refurbishment or new equipment would make a positive impact on their business.

Firms were generally optimistic about their prospects this year, with 48 per cent expecting business to grow.

Sharon Lowther, NatWest leisure sector specialist in Yorkshire, said: “We’ve set up a specialist team of managers dedicated to this sector and with this new fund we’re making it even easier for leisure businesses to invest.”