British Business Bank Investments Limited, the commercial arm of the British Business Bank, is investing GBP5 million in Kingsway, a Cheshire-based asset finance specialist.
The investment is expected to increase Kingsway’s leasing capacity by up to GBP10 million.
This investment is the latest in a series of commitments from British Business Bank Investments Limited in the leasing and asset finance space. In October, British Business Bank Investments provided a GBP40 million boost to Staffordshire-based Shire Leasing, which was matched by private sector investment. British Business Bank Investments Limited’s parent company, British Business Bank plc, recently launched its ENABLE programme to improve the ability of independent lease companies to access more competitive funding via the capital markets.
Leasing and asset finance allows smaller businesses to invest in assets or equipment for growth. The British Business Bank’s recent Small Business Finance Markets report revealed that 43% of businesses seeking finance are looking to purchase fixed assets, an increase of 10% since 2012.
These recent investments demonstrate how British Business Bank is delivering on its promise to provide regionally-based commercial business lenders with additional capital to lend to their local businesses.
In a further development, British Business Bank Investments Limited is introducing a new Expansion Capital initiative to its Investment Programme, enabling investments either by way of long term equity or other form of risk capital to support the growth of companies active in SME lending markets.
Peter Wilson, CEO of British Business Bank Investments Ltd, says: “Leasing and asset finance plays a crucial role in the diverse finance markets for UK smaller businesses. We believe we have already had a material impact on the block funding market, which is key for independent lease companies.
“We are continuing to support regional providers such as Kingsway, which are vital in ensuring we have finance markets which work better for UK smaller businesses. Our aim is to unlock more finance, offer more choice and ensure smaller businesses can make well-informed decisions about the right funding route for them.”
“The introduction of our new Expansion Capital initiative, made possible following our recent EC State Aid clearance, means we can invest with much greater flexibility as sole investor, enabling us to create greater impact with our funding.”
Adrian Anthon, Managing Director of Kingsway, says: “The North West is home to a thriving start up and small business community which we have been supporting for over 10 years.
“The new British Business Bank Investments Limited facility will enable Kingsway to significantly increase our lending to small businesses both in the North West and further afield.”
