British Business Bank Announces New Commitment to Finance Smaller UK Businesses

One of the biggest and fastest-growing independent asset finance companies in the UK, Propel, has been given a new ENABLE Funding facility by the British Business Bank. Propel will be able to lend roughly £165 million to smaller firms throughout the UK thanks to the new facility.

The ENABLE Funding initiative, which was introduced in 2014, supports the British Business Bank's goal of expanding the finance markets available to smaller UK companies. Smaller business finance providers frequently lack the scale necessary to cost-effectively access capital markets, a major source of funding for lending institutions.

With a £275 million contribution from Citibank and a £35 million mezzanine working capital credit from Quilam Capital, Propel has completed its first private securitization.

For equipment acquisitions ranging from a few thousand pounds to more than £2 million, Propel offers hire purchase, leasing, and refinancing solutions. Additionally, it offers a variety of equipment for commercial vehicles, industrial machinery, and telecoms.

Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions, British Business Bank, said, "We are delighted to be supporting smaller businesses via our ENABLE Funding programme and for Propel Finance to enter in this next stage of its development. Continued funding via ENABLE, as well as Propel's first refinancing transaction, will allow them to provide smaller businesses with greater access to a wider range of finance options and help create a more diverse finance market."

Mark Catton, CEO, Propel said, "We are thrilled to have completed this latest funding transaction, which marks this latest stage of Propel's growth in our mission to provide accessible finance to SMEs across the UK. We are an important funding partner of the British Business Bank and are excited by the growth opportunities the new funding lines with Citi and Quilam will provide. I should also acknowledge the brilliant work of the Propel team in getting this transaction successfully completed."