The British Business Bank has unveiled two significant initiatives with Propel Finance, reinforcing its commitment to strengthening finance options for UK small and medium-sized enterprises (SMEs). Announced recently tis month, the moves include a fresh £75 million warehouse facility under the ENABLE Funding program and the bank‘s first investment in a public asset-backed securitization (ABS) deal.
Propel Finance, recognised as the UK’s fastest-growing asset finance provider in recent years, will benefit from the new ENABLE facility.
This funding line will help expand its lending capacity to businesses seeking quick access to equipment finance.
The arrangement is paired with the Bank’s participation in Propel’s debut public securitization, named Velocity 2026-1.
This transaction represents a milestone, as it marks the first time the British Business Bank has backed a publicly issued ABS, following its earlier involvement in Propel’s initial private securitization back in 2022.
These partnerships highlight the bank’s broader approach to nurturing securitization markets in the business finance sector.
By improving funding diversity for specialist lenders, the initiatives aim to boost the overall availability of credit for SMEs across the country.
The British Business Bank has been a key backer of Propel since 2016, supplying warehouse facilities that enabled the lender to grow its operations and build a more robust funding structure.
The Velocity 2026-1 issuance signals Propel’s transition toward public capital markets.
The deal drew interest from 17 international investors, enhancing the company’s funding resilience and supporting further expansion of its lending activities.
This progression—from initial warehouse support to private securitizations and now public markets—illustrates how the Bank tailors its assistance to partners at various maturity stages.
Reinald de Monchy, Chief Banking Officer at the British Business Bank, reflected on the long-term collaboration.
He noted that Propel has transformed over the past decade from a promising smaller player into a leading force in the UK asset finance landscape.
The Bank takes pride in contributing to this development. De Monchy emphasized that the latest deals advance efforts to widen funding channels for both businesses and lenders while advancing the maturation of business securitization in the UK.
He described the public ABS outcome as particularly strong.
Mark Catton, CEO of Propel Finance, praised the enduring partnership.
He highlighted how the bank’s involvement has been crucial to Propel’s expansion and its deeper connections within the SME community.
When the first ENABLE facility launched in 2016, Propel had originated roughly £10 million in asset finance. Since 2018, the firm has delivered over £2 billion to more than 70,000 businesses.
Catton viewed the public securitization as a major achievement, welcoming the broad global investor support and the Bank’s decision to select Propel for its pioneering public ABS investment.
The ENABLE Funding program, launched in 2014, serves as a key platform for diversifying funding sources among leasing, asset finance, and term loan providers.
Its primary goal is to increase debt supply to SMEs, and it has already channeled more than £3 billion into the market.
This latest collaboration underscores the British Business Bank’s role as the UK government’s dedicated economic development bank.
Through more targeted types of programs, it continues to facilitate access to finance, helping smaller businesses start, grow, and excel. For Propel, the developments provide momentum as it extends support to SMEs acquiring essential business equipment and explores various embedded finance solutions.