British Business Bank increases SME credit supply by £51m

Posted by Alastair Mcdonald on Saturday, March 5, 2016

British Business Bank increases SME credit supply by £51m

British Business Bank increases SME credit supply by £51m

The government-owned British Business Bank has agreed to provide an additional £51m facility to increase the supply of credit to small and medium-sized enterprises (SMEs).

The transaction is the second of British Business Bank’s new ‘ENABLE Funding’ programme and is 50 per cent guaranteed by the European Investment Fund; increasing the supply of leasing and asset finance to Britain’s small business sector.

The ENABLE Funding programme, which has been developed as an aggregation vehicle, will enable LDF – a non-bank finance provider – to substantially expand its provision of asset finance to smaller businesses.

Peter Alderson, managing director, LDF, said: “Access to finance, particularly for asset procurement, remains a critical barrier to success for many smaller businesses and making this more readily available is something that we are fully behind.”

LDF already supplies significant financial support to the SME sector, with more than £40m of finance distributed in January alone and plans afoot to increase their presence further.

“We believe that this facility will enable us to further grow that base and also provide a higher level of support, to a significant proportion of that client base,” added Alderson.

The programme will be announcing additional agreements with other funders throughout the year. The refinancing will give institutional investors access to a large and highly diversified pool of SME debt.

Reinald de Monchy, managing director for wholesale solutions, British Business Bank, said: “This second transaction in the ENABLE Funding programme will further boost the availability of asset finance for businesses across the UK.

“We now have provided two facilities totalling £151 million and we anticipate further transactions throughout 2016.

“Our intention remains for these facilities to be refinanced through the capital markets once we achieve a required critical mass of circa £300 million or more.”

McAlistair Accountants Copyright © 2016 All rights reserved.