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Equipment Finance News British Business Bank builds SME awareness of new finance choices Published: 19th July 2017 Share The British Business Bank has increased its total business funding to £9.2 billion and helped create a more diverse finance market for SMEs, its annual report reveals. The bank is the UK’s national economic development bank, which was established in 2014, with a mission to make finance markets for smaller businesses work more effectively. Under its remit to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government, it currently provides £3.4 billion of finance to more than 59,000 smaller businesses and participates in a further £5.8 billion of finance to small mid-cap businesses. The funding level has increased by nearly £2 billion since the 2015/2016 financial year. A significant part of the bank’s work is to raise awareness of finance options available to businesses, including asset finance. It has published the Business Finance Guide (in partnership with the Institute of Chartered Accountants in England and Wales, and a further 21 business and finance organisations) that sets out the range of finance options available to businesses. The bank says that 50% of SMEs (up from 48% in 2015/16) are demonstrating heightened awareness of a range of finance options. It is also focused on delivering a more diverse finance market, with 94% of the support offered being delivered through smaller, newer or alternative finance providers outside the ‘big four’ banks. Examples of the success of its programmes include Fork Truck Borders Instruction, which provides training for operators of forklift trucks and other plant machinery including excavators, dump trucks and cranes. The business wanted to buy a new forklift truck, to employ a new member of staff and expand the business, but was turned down for an overdraft with its existing bank. Under the new Bank Referrals to Designated Finance Platforms scheme, it was referred to Funding Options within an hour. The training business was passed on to online lender iwoca, which approved their funding and had the money in their account within 24 hours of being turned down by the bank. Keith Morgan, CEO of the British Business Bank (pictured above), said: “Over the past year, we have delivered strongly against our four key performance indicators, broadening our support to provide more finance and extra choice for smaller businesses, at all stages of their growth. “It has been a year of significant expansion for the bank and, as our market impact continues to grow, we are well placed to respond flexibly to challenges ahead, helping to increase the amount and range of finance available to smaller UK businesses.” Lord Smith of Kelvin, chairman of the British Business Bank, said: “By the start of 2016/17, the British Business Bank had successfully moved from start-up phase to delivering strongly against a significantly evolving political and economic background. “Over the year it has substantially scaled up its programmes and broadened its support for smaller businesses across the UK.” British Business Bank Annual Report and Accounts 2016-17. Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsAlpha Trains expands fleet with up to 70 new Vectrons NewsGroupe BPCE reports robust Q2 and H1 2024 performance NewsGetinge partners with BNP Paribas Leasing Solutions Equipment Finance