We have announced the first facility under our new expansion capital initiative, which supports finance providers who lend to smaller businesses.
The first transaction is a £16.5 million revolving credit facility for Kingsway, a Cheshire-based asset finance specialist. It is expected to increase Kingsway’s leasing capacity by up to £25m, supporting investment in plant and machinery across the UK.
The expansion capital initiative, developed as part of our Investment Programme, enables us to support the development of diverse debt finance markets more effectively.
Under the new initiative, British Business Bank Investments Ltd can make investments as sole investor, without the need for its investments to be match-funded. The initiative unlocks increased development capital to speciality lenders serving smaller businesses, provided the lenders can demonstrate the funding will leverage additional lending or otherwise be assessed as having a strong fit with the Investment Programme’s overall aims.
Since the Investment Programme began in early 2013, we have committed more than £120m to six asset finance providers.
Keith Morgan, Chairman of British Business Bank Investments Ltd, said:
“We see asset finance as an increasingly important option for smaller businesses looking to grow and invest, as evidenced by our recent Small Business Finance Markets Report, which shows strong growth in asset finance volumes over the last two years. We are keen to introduce more innovative ways to meet the growing demand for this type of finance, in particular leasing and hire purchase for plant and machinery investments.
“We are delighted to support Kingsway with this revolving credit facility through the new expansion capital initiative under our Investment Programme.
“The greater freedom and flexibility we gain from acting as a sole investor will enable us to make an even bigger impact on finance markets serving smaller businesses across the UK.”
Adrian Anthon, Managing Director of Kingsway, said:
“I am delighted that Kingsway is the first UK asset finance company to benefit from the British Business Bank Investments Ltd new expansion capital initiative.
“From our North West base, Kingsway has been supporting UK small businesses for almost 20 years and this new facility will enable Kingsway to significantly increase our lending to small businesses across the UK.”
Simon Goldie, Head of Asset Finance, Finance & Leasing Association, added:
“The expansion capital initiative is an important addition to the British Business Bank’s funding initiatives, and will increase Kingsway’s ability to support smaller businesses through asset finance. We look forward to seeing more FLA member firms working with the Bank to drive economic growth in the UK.”
Asset finance continues to grow in popularity, with the Finance & Leasing Association reporting a growth in asset finance new business – primarily leasing and hire purchase – of 11% in 2015, to £28.1bn (excluding high-value deals), the market’s second consecutive year of double-digit growth. The asset finance industry funded almost 32% of total UK investment in machinery, equipment and purchased software in 2015.
For further information please contact
Tom Nutt, Tom.Nutt@wearesevenhills.com – 0207 199 6191
Scott Shearer, Scott.Shearer@british-business-bank.co.uk
Notes to editors
About British Business Bank Investments Ltd
British Business Bank Investments Ltd is the commercial arm of the British Business Bank. It aims to earn a commercial return by investing through providers of finance to smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government.
British Business Bank Investments Ltd is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank. Neither entity is authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The new Business Finance Guide, jointly published by the British Business Bank and the ICAEW’s Corporate Finance Faculty, is a unique guide that sets out the full range of options available for smaller businesses looking to raise finance. It also offers advice to help businesses plan for growth.
Kingsway is an independent provider of asset finance and leasing to UK small businesses, via a network of approved equipment suppliers and brokers. Based in Wilmslow, near to Manchester Airport, Kingsway was founded in 1997 and has been supporting UK small businesses for approaching 20 years.
British Business Bank Investments Ltd supported Kingsway with a £5m investment in February 2015. This £5mn commitment is superseded by the new revolving credit facility announced today.
About the British Business Bank and asset finance
The British Business Bank enables greater provision of asset and lease finance through a range of interventions. As well as supporting providers through British Business Bank Investments Ltd’s Investment Programme, the Bank is also working with the Finance & Leasing Association to widen the scope of the Bank’s Enterprise Finance Guarantee to include support for asset finance.
Asset finance providers have also benefited from the Bank’s ENABLE Funding programme, which aims to improve the ability of independent asset or lease finance providers to access more competitive funding via the capital markets, thereby increasing significantly the supply of leasing and asset finance to smaller businesses in the UK.
The Enable Funding programme has so far agreed facilities of more than £200 million to three non-bank asset finance providers – Henry Howard Finance (£51 million), LDF (£51 million) and Hitachi Capital (£100 million).BACK
6th March 2019Beechbrook Capital’s second UK SME Credit Fund reaches first close at £128m and completes first two investments
18th February 2019British Business Investments commits £20m to ThinCats to provide more debt finance to UK businesses
29th October 2018Autumn Budget 2018
23rd October 2018British Business Investments – Full year results for the period ending 31 March 2018
23rd October 2018British Business Investments Annual Report 2018
2nd October 2018British Business Investments makes £25m Tier 2 investment in Secure Trust Bank PLC
1st October 2018British Business Investments launches new £100m programme to support regional angel investment
1st October 2018Catherine Lewis La Torre appointed CEO of British Business Bank’s commercial patient capital activities
27th June 2018British Business Investments commits £31.15m to IQ Capital Fund III to support deep tech companies
16th May 2018British Business Investments provides £12m to asset finance specialist Universal Leasing Ltd
15th May 2018British Business Investments launches new £500m programme to increase access to patient capital
3rd May 2018Growth Capital firm Oxx announces first close of debut fund with commitment from British Business Investments
17th April 2018British Business Investments commits to Dawn Capital’s new venture capital fund
11th April 2018British Business Investments provides new finance facility to Liberis
28th February 2018British Business Investment commits £20m to new venture capital model from Kindred Capital
6th February 2018British Business Investments commits to a £30m boost for smaller businesses
22nd December 2017British Business Investment’s latest commitment boosts regional finance options for UK smaller businesses
11th December 2017British Business Investments commits £30 million at the first close of Shard Credit Partners first direct lending fund
4th December 2017British Business Investments and IGF to increase SME funding with new cash injection
30th November 2017British Business Investments commits £15m to Balderton’s new $375m fund
24th November 2017Budget 2017
23rd November 2017News from our partners – Seedcamp celebrates 10 year anniversary with £41M first close seed fund to invest in next generation of European entrepreneurs
16th November 2017British Business Investments commits £20m to £100m FPE Capital fund
16th November 2017Catherine Lewis La Torre at this year’s BVCA Summit
21st September 2017BRITISH BUSINESS INVESTMENTS – FULL YEAR RESULTS FOR THE PERIOD ENDING 31 MARCH 2017
21st September 2017VIEW OUR ANNUAL REPORT FOR 2016-17
3rd August 2017British Business Bank Investments Ltd commits €40 million in first closing for Harbert European Growth Capital Fund II.
10th July 2017GCP 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 2017BOOST&Co Limited secures additional £20m commitment from British Business Bank Investments Ltd for its Industrial Lending 1 fund
21st June 2017Atom bank secures £30m Tier 2 capital facility from British Business Bank Investments Ltd
21st April 2017British Business Bank Investments Ltd provides £6.6m of funding to Shire Leasing to boost asset finance for smaller businesses
2nd February 2017Beechbrook Capital closes £150m UK SME Credit I and backs two more businesses
18th January 2017British Business Bank Investments Ltd makes £400m from Autumn Statement available to venture capital funds
5th January 2017British Business Bank expands partnership with Funding Circle
8th November 2016British Business Bank Investments Ltd announces £10m commitment to new £260m technology fund
20th September 2016British Business Bank Investments Ltd – Full Year results for the period end 31 March 2016
20th September 2016View our Annual Report for FY2015-16
13th September 2016British Business Bank Investments Ltd commits £18m to northwest-based asset finance provider, enabling a £36m boost to smaller business growth
3rd August 2016British Business Bank Investments Ltd partner Beechbrook Capital holds first close on latest private debt fund
20th July 2016British Business Bank Investments Ltd provides £16.5m line to Northwest asset finance provider Kingsway under new expansion capital initiative
16th June 2016British Business Bank Investments Ltd names Catherine Lewis La Torre as Chief Executive Officer
17th May 2016British Business Bank Investments Ltd invests in Frog Capital II
14th April 2016British Business Bank Investments Ltd invests £30 million in first close of CORDET Direct Lending fund
31st March 2016British Business Bank Investments Ltd invests in Atlantic Bridge III, a new €140 million fund for Technology companies
22nd March 2016British Business Bank Investments Limited partners with Liberis to support funding for smaller UK businesses
10th March 2016British Business Bank Investments Limited publishes half year results for the six months ended 30 Sept 2015
22nd February 2016View our annual report for FY 2014-2015
19th February 2016British Business Bank Investments agrees £25m facility with Haydock Finance
19th January 2016British Business Bank Investments Ltd invests in new UK Private Debt Fund from Muzinich & Co
19th January 2016British Business Bank Investments Ltd – Annual Results and publication of 2015 Annual Report and Accounts
4th January 2016British Business Bank Investments Ltd-supported Beechbrook Capital’s inaugural UK SME Credit Fund holds first close at more than £100m
29th October 2015British Business Bank’s commercial arm supports UK SMEs with investment in Shawbrook Bank
17th September 2015British Business Bank’s VC Catalyst Fund invests in Nauta
27th March 2015British Business Bank Investments Limited makes €6m clean technology investment
2nd February 2015British Business Bank Investments backs Northwest asset finance provider with £5m investment, introduces new expansion capital initiative
31st October 2014£80 million boost for leasing finance as British Business Bank focuses on alternative lending for smaller businesses
24th September 2014British Business Bank partner BMS Finance provides debt finance to Whittle, one of the UK’s leading commercial painting contractors
2nd September 2014British Business Bank boosts European Capital UK SME fund to £100m to help provide debt finance to UK’s smaller businesses
6th August 2014Making Britain the global centre of financial innovation – £100m extra for British Business Bank Investment Programme
25th February 2014New £40m investment by British Business Bank to support £450m of lending to smaller businesses