£80 million boost for leasing finance as British Business Bank focuses on alternative lending for smaller businesses

Latest News

£80 million boost for leasing finance as British Business Bank focuses on alternative lending for smaller businesses

Shire Leasing, which specialises in lease finance to small businesses, has received an £80 million boost thanks to an investment by the British Business Bank and the private sector.

Leasing finance and asset finance are increasingly important sources of finance for small and medium-sized enterprises (SMEs). It allows them to invest in assets or equipment for growth which they would not have been able to afford otherwise. The British Business Bank’s investment is its first, structured as a block discounting facility and comprises £40 million from the British Business Bank, matched by £40 million private sector funding.

Based in Staffordshire, Shire already supports 11,000 SMEs across the UK, but today’s investment means it will be able double the level of finance it currently provides to firms. Shire leases enable smaller businesses to acquire a wide range of key assets including: telephone equipment, IT, catering equipment, software and even helps farmers fund the purchase of livestock and small wind turbines. The average lease size is £6,000 and the average agreement term is 48 months.

Business Secretary Vince Cable said:

“Today’s investment is significant because it shows we are serious about promoting greater use of asset finance and alternative lenders. The market is heavily dominated by the big high street banks so competition is limited and innovation is slow, but by making these investments we can start to engineer long-term structural changes that benefit both businesses and the market.”

Business and Enterprise Minister Matthew Hancock said:

“Accessing the finance they need to start up and grow can be a major barrier for many businesses – but we are working hard to engineer a long-term sustainable change.

“We are committed to making Britain the best place in the world to start and grow a business and the Business Bank is an integral part of coming good on this.

“Over 30,000 businesses have already accessed finance through the British Business Bank and this new investment will be welcome news to thousands more.”

Keith Morgan, CEO of the British Business Bank said:

“We are delighted to be able to announce such a substantial capital contribution to the block discounting market, which is capacity constrained at this time.

“The British Business Bank is committed to easing the burden on the UK’s small businesses, and at a time when lending is still difficult to come by, this is another significant step in achieving that aim.”

Mark Picken, CEO Shire Leasing said:

“We are delighted with this new partnership with the British Business Bank. We see a real opportunity to expand into a market that the banks have pulled back from. Ours is an exciting and innovative product which will help thousands of small firms make investments and take advantage of the new growth in the economy.”

The British Business Bank is working to promote a finance market that is not overly reliant on a small number of high street banks and debt finance. To date, the British Business Bank has already invested significant funds into alternative finance providers including peer-to-peer lenders Funding Circle and Ratesetter. Next week, the Government will table amendments to the Small Business, Enterprise and Employment Bill which will require larger banks to refer a business to alternative lenders if they are declined for a bank loan.

-ENDS-

Notes to editors:

For more information, please contact:

Department for Business, Innovation and Skills:
Jason Raj
Tel: 020 7215 5978
Email: jason.raj@bis.gsi.gov.uk

ABOUT THE BRITISH BUSINESS BANK
1. Founded by the Secretary of State for Business, Innovation and Skills Vince Cable in September 2012, the British Business Bank is a key element of the government’s strategy for increasing the supply of credit to SMEs.
2. Bringing together public and private sector funds the Bank strives to create more effective and efficient finance markets for small and medium-sized businesses in the UK. At the heart of the government’s Industrial Strategy, The British Business Bank’s its programmes are already contributing to making the UK the best place in Europe to start, grow and finance a business.

3. The British Business Bank Investment Programme is a part of the British Business Bank programme, which is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. British Business Bank plc will operate as a Government-owned financial institution once HM Government has received European Commission State aid clearance, which is expected in 2014, at which point some of the programme will be transferred to British Business Bank plc.

ABOUT SHIRE LEASING

4. Based in Tamworth, Shire employs 130 people from across the midlands. Shire Leasing provides business support to over 11,000 SMEs across the UK, helping them to prepare for future growth. Since launching in 1990, Shire Leasing has become the largest independent funding house in the UK for equipment finance and asset leasing.

Department for Business, Innovation & Skills
1 Victoria Street, London SW1H 0ET

Press enquiries +44 (0)20 7215 5978 | (Out of hours)+44 (0)20 7215 3234/3505 | Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment) | Press Office fax +44 (0)20 7222 4382
www.gov.uk/bis

back to newsBACK

Our News

2018

29th October 2018

Autumn Budget 2018

23rd October 2018

British Business Investments – Full year results for the period ending 31 March 2018

23rd October 2018

British Business Investments Annual Report 2018

2nd October 2018

British Business Investments makes £25m Tier 2 investment in Secure Trust Bank PLC

1st October 2018

British Business Investments launches new £100m programme to support regional angel investment 

1st October 2018

Catherine Lewis La Torre appointed CEO of British Business Bank’s commercial patient capital activities

27th June 2018

British Business Investments commits £31.15m to IQ Capital Fund III to support deep tech companies

16th May 2018

British Business Investments provides £12m to asset finance specialist Universal Leasing Ltd

15th May 2018

British Business Investments launches new £500m programme to increase access to patient capital   

3rd May 2018

Growth Capital firm Oxx announces first close of debut fund with commitment from British Business Investments

17th April 2018

British Business Investments commits to Dawn Capital’s new venture capital fund

11th April 2018

British Business Investments provides new finance facility to Liberis

28th February 2018

British Business Investment commits £20m to new venture capital model from Kindred Capital

6th February 2018

British Business Investments commits to a £30m boost for smaller businesses

2017

22nd December 2017

British Business Investment’s latest commitment boosts regional finance options for UK smaller businesses

11th December 2017

British Business Investments commits £30 million at the first close of Shard Credit Partners first direct lending fund

4th December 2017

British Business Investments and IGF to increase SME funding with new cash injection

30th November 2017

British Business Investments commits £15m to Balderton’s new $375m fund

24th November 2017

Budget 2017

23rd November 2017

News from our partners – Seedcamp celebrates 10 year anniversary with £41M first close seed fund to invest in next generation of European entrepreneurs

16th November 2017

British Business Investments commits £20m to £100m FPE Capital fund

16th November 2017

Catherine Lewis La Torre at this year’s BVCA Summit

21st September 2017

BRITISH BUSINESS INVESTMENTS – FULL YEAR RESULTS FOR THE PERIOD ENDING 31 MARCH 2017

21st September 2017

VIEW OUR ANNUAL REPORT FOR 2016-17

3rd August 2017

British Business Bank Investments Ltd commits €40 million in first closing for Harbert European Growth Capital Fund II.

10th July 2017

GCP caps a successful year with a £40m investment from British Business Bank Investments Ltd to complete the final close of Fund IV at £205m

29th June 2017

BOOST&Co Limited secures additional £20m commitment from British Business Bank Investments Ltd for its Industrial Lending 1 fund  

21st June 2017

Atom bank secures £30m Tier 2 capital facility from British Business Bank Investments Ltd

21st April 2017

British Business Bank Investments Ltd provides £6.6m of funding to Shire Leasing to boost asset finance for smaller businesses

2nd February 2017

Beechbrook Capital closes £150m UK SME Credit I and backs two more businesses

18th January 2017

British Business Bank Investments Ltd makes £400m from Autumn Statement available to venture capital funds

5th January 2017

British Business Bank expands partnership with Funding Circle

2016

8th November 2016

British Business Bank Investments Ltd announces £10m commitment to new £260m technology fund

20th September 2016

British Business Bank Investments Ltd – Full Year results for the period end 31 March 2016

20th September 2016

View our Annual Report for FY2015-16

13th September 2016

British Business Bank Investments Ltd commits £18m to northwest-based asset finance provider, enabling a £36m boost to smaller business growth

3rd August 2016

British Business Bank Investments Ltd partner Beechbrook Capital holds first close on latest private debt fund

20th July 2016

British Business Bank Investments Ltd provides £16.5m line to Northwest asset finance provider Kingsway under new expansion capital initiative

16th June 2016

British Business Bank Investments Ltd names Catherine Lewis La Torre as Chief Executive Officer

17th May 2016

British Business Bank Investments Ltd invests in Frog Capital II

14th April 2016

British Business Bank Investments Ltd invests £30 million in first close of CORDET Direct Lending fund

31st March 2016

British Business Bank Investments Ltd invests in Atlantic Bridge III, a new €140 million fund for Technology companies

22nd March 2016

British Business Bank Investments Limited partners with Liberis to support funding for smaller UK businesses

10th March 2016

British Business Bank Investments Limited publishes half year results for the six months ended 30 Sept 2015

22nd February 2016

View our annual report for FY 2014-2015

19th February 2016

British Business Bank Investments agrees £25m facility with Haydock Finance

19th January 2016

British Business Bank Investments Ltd invests in new UK Private Debt Fund from Muzinich & Co

19th January 2016

British Business Bank Investments Ltd – Annual Results and publication of 2015 Annual Report and Accounts

4th January 2016

British Business Bank Investments Ltd-supported Beechbrook Capital’s inaugural UK SME Credit Fund holds first close at more than £100m

2015

29th October 2015

British Business Bank’s commercial arm supports UK SMEs with investment in Shawbrook Bank

17th September 2015

British Business Bank’s VC Catalyst Fund invests in Nauta

27th March 2015

British Business Bank Investments Limited makes €6m clean technology investment

2nd February 2015

British Business Bank Investments backs Northwest asset finance provider with £5m investment, introduces new expansion capital initiative

2014

31st October 2014

£80 million boost for leasing finance as British Business Bank focuses on alternative lending for smaller businesses

24th September 2014

British Business Bank partner BMS Finance provides debt finance to Whittle, one of the UK’s leading commercial painting contractors

2nd September 2014

British Business Bank boosts European Capital UK SME fund to £100m to help provide debt finance to UK’s smaller businesses

6th August 2014

Making Britain the global centre of financial innovation – £100m extra for British Business Bank Investment Programme

25th February 2014

New £40m investment by British Business Bank to support £450m of lending to smaller businesses

2013

9th July 2013

Dawn Capital raises new fund with help from British Business Bank’s VC Catalyst fund