“We are able to develop flexible, tailored solutions that unlock real growth for our partners and provide significant additional funding for smaller businesses in the UK.”
Structured Capital Solutions
Businesses supported as of 31 March 2017
Through our continued engagement with the market we have developed a strong understanding of the dynamics impacting both asset finance providers and challenger banks. As a result we have structured and delivered capital solutions directly to qualified market participants to help address the access to 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 provide Tier Two capital facilities to challenger banks, as well as senior debt funding and mezzanine capital to asset finance providers. A Tier Two capital facility provides a valuable addition to a challenger bank’s regulatory capital base and can be drawn upon in a flexible manner. Asset finance is an important source of funding for smaller businesses in the UK, representing just over £30 billion of new business lending in 2016. Our facilities enable asset finance providers to accelerate the growth of their lending books in a prudent and capital-efficient way.
Finance providers can apply under either the Direct, Managed or Expansion Capital variants of our Investment Programme.