British Business Bank Investments Ltd., the commercial arm of the British Business Bank, announced on Wednesday the first facility under its new expansion capital initiative.
According to British Business Bank Investments, the first transaction is a £16.5 million revolving credit facility for Kingsway, a Cheshire-based asset finance specialist. The expansion capital initiative reportedly enables it to support the development of diverse debt finance markets more effectively. The company noted the initiative unlocks increased development capital to specialty 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.
Keith Morgan, chairman of British Business Bank Investments Ltd, stated:
“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, commented:
“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.”