The government-owned British Business Bank has stepped up its lending commitments to small firms with a new £60m asset finance facility.
To help small business owners purchase equipment, free up working capital and invest for growth, the UK’s economic development bank has provided non-bank lender Simply Asset Finance with the facility as part of its ENABLE Funding programme.
Recently released statistics revealed asset-based lending to small UK business owners has reached record levels, with more being provided in 2017 than ever before, and the British Business Bank’s announcement indicates a further push to get more firms borrowing for asset investments.
Since its foundation in April 2017, Simply Asset Finance has arranged over £35m of financing across sectors such as manufacturing, construction and transport.
Commenting on the funding facility, Keith Morgan, British Business Bank CEO, said providers like Simply Asset Finance shared the bank’s goal of increasing the volume of small business lending options.
“Leasing and asset finance is a vital form of funding for many smaller businesses looking to scale up. It allows them to buy or replace the equipment that they need to take their business to the next level and realise their growth potential,” Morgan said.
“We’re also committed to increasing the diversity of finance provision, allowing exciting and innovative non-bank entrants like Simply Asset Finance to help provide even more funding options to smaller businesses around the UK.”
Mike Randall, CEO of Simply Asset Finance, said the facility would allow the lender to support small business owners looking to invest for future growth, and to provide a “better, simpler and more agile financial experience”.
“Many of our clients just do not want to deal with large corporate lenders and banks,” he added.
“Our ethos – which echoes that of the British Business Bank – is simple: we want to help organisations unlock the best funding solution for their businesses and generate more working capital. We are delighted to agree this facility and look forward to working with the bank long term.”
The British Business Bank’s ENABLE Funding programme has supported lending to over 10,000 businesses since launching in September 2015, and its Business Finance Guide has sought to increase awareness of funding options for entrepreneurs.
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