British Business Bank increases Propel’s ENABLE Funding facility for SMEs

Currently supporting approximately 40,000 customers, Propel provides hire purchase, leasing and refinancing support on equipment purchases from a few thousand pounds to more than £2m; and equipment types ranging from telecoms and technology to commercial vehicles and industrial plant.

Launched in 2014, the ENABLE Funding programme supports the Bank’s objective to diversify finance markets for smaller UK businesses. Providers of finance to SMEs often lack the scale required to access capital markets – a key source of funding for lending institutions – in a cost-efficient manner. The ENABLE Funding programme warehouses newly-originated finance receivables from different originators, bringing them together into a new structure. Once the structure has sufficient scale, it will refinance a portion of its funding on the capital markets, also helping small finance providers to tap into institutional investors’ funds.

Mark Catton, CEO of Propel, said: “We’re proud to work with the British Business Bank to help support UK businesses across all equipment types. Our partnerships gives us reach into all sectors of the economy, and all types of businesses. The ENABLE Funding programme helps us translate that reach into fast and accessible finance for SMEs wanting to invest and grow”.

Reinald de Monchy, managing director, guarantee and wholesale solutions of the British Business Bank, said: “By partnering with alternative and non-bank lenders, like Propel, we can give smaller UK businesses access to the asset and lease finance they need. The Bank remains committed to its objective to create a more diverse finance market, and we look forward to continuing to work with Propel and other non-banks to help provide even more funding options to smaller businesses across the UK.”

In 2020 Propel announced a landmark partnership with Barclays, providing asset finance solutions to over one million SME customers across the country. Earlier this year the lender also announced its partnership with Azets, the largest regional Top 10 SME an accountancy firm, with Propel being its strategic partner for asset finance solutions to its 60,000 UK clients.