The UK independent asset finance provider Propel has reported two further financing tranches from the British Business Bank to add to its existing ENABLE Funding facility.
The total facility, which aims to improve the supply of finance solutions for business-critical assets, will allow finance worth in excess of £216 million to be provided to SMEs across the UK; making Propel one of the largest facilities under the Bank’s ENABLE Funding programme.
Propel provides flexible and accessible asset finance to SMEs across the UK. Currently supporting approximately 40,000 customers, they provide hire purchase, leasing and refinancing support on equipment purchases from a few thousand pounds to more than £2m; and equipment types ranging from telecoms and technology to commercial vehicles and industrial plant.
“We’re proud to work with the British Business Bank to help support UK businesses across all equipment types,” comments Mark Catton, CEO of Propel. “Our partnerships gives us reach into all sectors of the economy, and all types of businesses. The ENABLE Funding programme helps us translate that reach into fast and accessible finance for SMEs wanting to invest and grow”.
Launched in 2014, the ENABLE Funding programme supports the Bank’s objective to diversify finance markets for smaller UK businesses. Providers of finance to SMEs often lack the scale required to access capital markets – a key source of funding for lending institutions – in a cost-efficient manner.
“The British Business Bank developed the ENABLE Funding programme to allow access to cost-efficient funding from institutional investors for providers of finance to smaller businesses,” comments Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions of the British Business Bank. “By partnering with alternative and non-bank lenders, like Propel, we can give smaller UK businesses access to the asset and lease finance they need. The Bank remains committed to its objective to create a more diverse finance market, and we look forward to continuing to work with Propel and other non-banks to help provide even more funding options to smaller businesses across the UK.”
The ENABLE Funding programme warehouses newly-originated finance receivables from different originators – bringing them together into a new structure. Once the structure has sufficient scale, it will refinance a portion of its funding on the capital markets, also helping small finance providers to tap into institutional investors’ funds.
Hugh McNeill, Partner at Cabot Square Capital, added, “We have worked with Propel since 2014. The company ‘promise’ is simple – being small enough to care, and deliver a brilliant service to their customers, and big enough to have the expertise and technology to be a leader in SME finance.
“These additional rounds of British Business Bank funding will enable Propel to continue doing what they do best – helping customers invest and grow by financing business-critical assets.”