Kingsway receives £5m backing from British Business Bank Investments

Government fund’s capital investment will see asset finance lender able to increase leasing capacity for small business clients

Cheshire-based asset finance specialists Kingsway has secured a £5m investment from British Business Bank Investments Ltd, which is expected to increase the company’s leasing capacity by up to £10m.

With fewer small and mid sized businesses being accepted for a credit loan by major banks, this represents an alternative for smaller enterprises looking for finance in the North West.

The deal follows British Business Bank stated aim to increase support for asset and lease finance providers, which will ultimately flow down to smaller businesses seeking to raise finance against their assets and invest in equipment for growth.

There has been an increase of 10% in the number of businesses looking to purchase fixed asset finance since 2012, according to the British Business Bank’s recent Small Business Finance Markets 2014 report.

In October British Bank Investments provided Staffordshire-based Shire Leasing with a £40m investment, and has recently launched ENABLE, a programme to help independent lease companies access more competitive funding through capital markets.

The fund is also set to launch an Expansion Capital initiative as part of its Investment Programme, to facilitate long-term equity or other risk capital investments.

Managing director of Kingsway, Adrian Anthon commented: “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 Ltd facility will enable Kingsway to significantly increase our lending to small businesses both in the North West and further afield.”

CEO of British Business Bank Investments Ltd, Peter Wilson said: “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.”

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