Finance · 22 March 2016

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

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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.


 
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ABOUT THE EXPERT

Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.

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