The British Business Bank has announced another deal in its efforts to channel funding to SMEs viable commercial finance providers.
The latest iteration of the policy has seen the BBB invest £18m in Blackburn and Manchester-based Praetura Asset Finance. The deal is structured to optimise the bank’s investment, and is made up of £15m of matched funding and an additional £3m of expansion capital. The BBB says that the funding line will support at least £36m of smaller business finance. This is the first British Business Bank Investments Ltd transaction to combine matched and unmatched funding in this way.
Catherine Lewis La Torre, CEO of British Business Bank Investments Ltd, said, “British Business Bank’s recent Small Business Finance Markets Report indicated strong growth in asset finance volumes over the last two years, and we see asset finance as an important option for smaller businesses looking to realise their growth potential.
“The report indicated strong growth in asset finance volumes over the last two years, and we see asset finance as an important option for smaller businesses looking to realise their growth potential.
“We are keen to support the growing demand for this type of finance and are pleased to be making this investment in Praetura Asset Finance. By supporting relative newcomers to the market – Praetura was established in 2014 – we are actively increasing lending choices for smaller businesses across the UK.”
Suitable and targeted finance solutions for SMEs
Meanwhile Mike Hartley, managing director of Praetura Asset Finance Ltd, said, “We are delighted at Praetura to be partnering with British Business Bank Investments Ltd. The syndication of our senior debt, alongside the expansion capital facility, provides us with real stability to support our continued growth.
“Like our other institutional funders, British Business Bank Investments Ltd shares our aim of providing suitable and targeted finance solutions for SMEs. These facilities will help meet the objectives of both parties, and to secure Praetura’s market position in the coming years.”