Lending

British Business Bank supports Liberis with 5m small firm loan facility

Fred Heritage | 22 March 2016 | 8 years ago

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The BBB is set to announce further partnerships with small business lenders like Liberis throughout 2016
The British Business Bank (BBB) has agreed to back funding for Britain’s small firms with a 5m allocation to Liberis a small business loan provider.

The facility will help Liberis which has so far advanced more than 100m to the country’s small businesses to expand, and it is estimated that the investment will support funding to over 2, 000 small firms in 2016 alone. As a result, the company expects to double its volume this year, providing nearly 50m of funding.

Via its business cash advance product, Liberis gives funding of between 4, 000 to 300, 000 to small businesses based on future credit and debit card sales. As the UK’s first provider of so-called merchant cash advances, Liberis loans are then paid back via a pre-agreed proportion of a business’s credit or debit card transactions.

Commenting on the facility, CEO of British Business Bank Investments Ltd the commercial arm of the BBB Peter Wilson said: Merchant cash advances can offer a transparent and aligned financing option for business including some which might otherwise be unwilling or unable to raise finance.

the BBB is particularly keen to support the innovative expansion of the reach and choice of funding for smaller UK businesses, and Liberis? responsible approach to developing the sector is welcomed. Liberis? growth plans will help our funding reach companies which might otherwise struggle to raise finance, Wilson continued.

Since its foundation in 2007, Liberis has provided investment to over 3, 000 UK small firms, advancing on average 15, 000 which typically funds the refurbishment of a company’s premises, stock purchase of expansion, and is usually paid back over a period of seven or eight months.

Liberis finance director Tom Bason added: We want to become the first choice for small business finance by offering a simple and responsible option. Liberis? pay-as-you-earn? option has proven particularly popular with small companies where income fluctuates on a seasonal basis.

Last month, the BBB announced the allocation of 51m in wholesale funding to SME lender LDF, stepping up its commitment to help small firms access asset-based finance. That facility followed a similar agreement with HitachI Capital in October 2015.

The BBB is set to announce further partnerships with small business lenders throughout 2016, with finance packages expected to range between 25m and 150m.

In January, Business Advice named BBB CEO Keith Morgan amongst our maiden list of key Small Business Decision Makers. Read our interview with him here.

Topic

Lending

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