British Business Bank and Simply Asset Finance to pump £60m into small firms
Aiming to help firms buy equipment via hire purchase, finance leases and refinancing, the deal is part of the ENABLE Funding programme
The British Business Bank has announced that its providing a facility to Simply Asset Finance that will increase its funding to small businesses by £60m for critical requirements like hire purchases, finance leases and refinancing.
The transaction is the sixth made under the bank’s ENABLE Funding programme, which aims to increase the supply of leasing and asset finance to small firms up and down the country.
Read more: What is asset finance?
Set up in April 2017, Simply Asset Finance describes itself as a “non-bank lender”.
Led by Mike Randall, and backed by the investor Cabot Square Capital, Simply provides funding to small and medium sized businesses to help them purchase equipment, free up working capital and invest in growth.
In the short time since it was established, the firm has already arranged more than £35m of financing across a variety of sectors – including manufacturing, construction, transport and recycling.
Since the first transaction in September 2015, the ENABLE Funding programme has supported lending to over 10,000 businesses.
Mike Randall, CEO of Simply Asset Finance, said:
“The funding from the British Business Bank will allow us to further support those businesses that are looking to invest in the future, and consequently drive the country’s growth.
“We’ve long recognised the need to provide customers with a better, simpler, transparent and more agile financial experience.
“Many of our clients just do not want to deal with large corporate lenders and banks.
“Our ethos – which echoes that of the British Business Bank – is simple: we want to help organisations unlock the best funding solution for their businesses and generate more working capital.
“We are delighted to agree this facility and look forward to working with the Bank long term.”
Keith Morgan, CEO of the British Business Bank, said:
“Our ENABLE Funding programme helps support smaller finance providers like Simply Asset Finance who share our goal of increasing the supply of finance to small and medium sized businesses.
“Leasing and asset finance is a vital form of funding for many smaller businesses looking to scale up. It allows them to buy or replace the equipment that they need to take their business to the next level and realise their growth potential.
“The Bank is committed to increasing the volume of funding available to smaller businesses.
“We’re also committed to increasing the diversity of finance provision, allowing exciting and innovative non-bank entrants like Simply Asset Finance to help provide even more funding options to smaller businesses around the UK.”
Richard McDougall, partner at Cabot Square Capital, said:
“We are very pleased with the excellent progress that Simply Asset Finance has made in a short period of time, and it is great that the British Business Bank is supporting Simply Asset Finance alongside us.
“Mike and his team provide an invaluable service to businesses across the country – by lending Cabot’s institutional capital and the Government’s funds back into the real economy in a responsible and modern way.”