£165 Million Of Asset Finance For Smaller UK Businesses

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The British Business Bank is working with Propel to enable £165 million of asset finance for smaller UK businesses. The new facility is part of a wider plan for £0.5 billion of funding for UK businesses.

Propel is one of the UK’s largest and fastest growing independent asset finance providers. Propel and the British Business Bank will work via the Enable Funding Programme which was launched in 2021 to support the objective to diversify finance markets for smaller UK businesses.

Providers of finance to smaller businesses are often relatively small themselves which means they can struggle to access capital markets – a key source of funding for lending institutions – in a cost-efficient manner. Enable is designed to overcome this hurdle.

Propel has completed its first private securitisation, consisting of £275 million provided by Citibank and a £35 million mezzanine working capital facility provided by Quilam Capital.

Scale

Propel provides hire purchase, leasing and refinancing support on equipment purchases from a few thousand pounds to more than £2 million. It also provides equipment types ranging from telecoms and technology to commercial vehicles and industrial plant.

 “We are supporting smaller businesses via our Enable Funding Programme and are pleased Propel Finance has entered in this next stage of its development.”

– Reinald de Monchy 

Managing director, guarantee and wholesale solutions, British Business Bank

Growth

Mark Catton, CEO, Propel says: This marks this latest stage of Propel’s growth in our mission to provide accessible finance to SMEs across the UK.”

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support over £8.5 billion of finance to almost 95,000 smaller businesses and is responsible for running the government’s coronavirus business loan schemes.

Picture: Citi Bank is one of the funders of Propel via the British Business Bank and the Enable Funding Programme to deliver asset finance to smaller businesses.

www.british-business-bank.co.uk

www.propelfinance.co.uk

Article written by Cathryn Ellis
22nd September 2022

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