Through our continued engagement with the market we have developed a strong understanding of the dynamics impacting both asset finance providers, invoice finance providers and challenger banks. As a result we have structured and delivered capital solutions directly to qualified market participants to help address the capital constraints faced by these partners. This has enabled them to on-lend in greater volume to a large number of smaller businesses throughout the country.
We have provided Tier 2 capital to challenger banks, and our support provides a valuable addition to a challenger bank’s regulatory capital base and can be drawn upon in a flexible manner.
Furthermore, asset finance and receivables finance are also important sources of funding for smaller businesses in the UK. Through providing senior and unitranche debt funding, we have enabled asset finance providers to accelerate the growth of their lending books in a prudent and capital-efficient way.