A Newport-based asset finance company has received £ 95million in funding from the British Business Bank.
Propel announced two more funding tranches from British Business Bank to add to its existing ENABLE funding facility.
The Total Facility will provide more than £ 216million in financing to small businesses in Wales and the UK, making it one of the largest facilities in the Bank’s ENABLE finance program, which targets to improve the offer of business finance solutions active to UK small businesses.
Propel, which was previously Henry Howard Finance until 2019, provides asset finance to SMEs across the UK and currently supports around 40,000 clients. The company offers hire-purchase, leasing and refinancing services for equipment purchases ranging from a few thousand pounds to over £ 2 million; and types of equipment ranging from telecommunications and technology to commercial vehicles and industrial facilities.
In the last 12 months, Propel has concluded 662 agreements in many sectors in Wales; and, funded a total of £ 18.176million to Welsh businesses. This is an increase of almost 4% in funding over the same period in 2019-2020, despite the start of the pandemic.
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Mark Catton, CEO of Propel, said: “We are proud to work with the British Business Bank to help support Welsh and UK businesses for all types of equipment.
“Our partnerships allow us to reach all sectors of the economy and all types of businesses. The ENABLE funding program helps us translate this reach into accessible funding for SMEs wishing to invest and grow ”.
Launched in 2014, the ENABLE finance program supports the Bank’s goal of diversifying financial markets for UK small businesses. The bank believes that providers of finance to small businesses often do not have the size required to access capital markets – a key source of finance for lending institutions – in a cost-effective manner. The ENABLE finance program stores newly created financial claims with different originators – bringing them together in a new structure. Once the structure is of sufficient size, it will refinance part of its funding on the capital markets, also helping small donors to tap into funds from institutional investors.
Mark Sterritt, UK Network Director, Wales at the British Business Bank, said: “The British Business Bank has developed the ENABLE finance program to provide access to cost-effective financing from institutional investors for providers of finance to banks. small enterprises. By partnering with alternative, non-bank lenders like Propel, we can give Wales small businesses access to the assets and leasing they need.
Hugh McNeill, Partner at Cabot Square Capital, the majority owner of Propel added: “We have been working with Propel since 2014. The company’s ‘promise’ is simple: to be small enough to look after and provide brilliant service to their people. clients, and large enough to have the expertise and technology to be a leader in SME finance.
“These additional rounds of funding from the British Business Bank will allow Propel to continue doing what it does best – helping clients invest and grow by funding critical business assets.”