Propel secures £1.5bn to supercharge SME equipment
Propel Finance has announced the successful completion of a landmark £1.5 billion funding round aimed at expanding access to finance for thousands of small and medium-sized enterprises (SMEs) across the UK.
The funding will be used to support businesses investing in critical equipment and vehicles, fuelling innovation and economic growth, the lender said in a statement.
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The fresh capital injection has attracted backing from a consortium of leading financial institutions and global investors.
Among the key elements of the deal is a significant forward flow funding line from Barclays, alongside a new strategic wholesale funding line provided by Bank of America.
Propel has also secured extended wholesale facilities with Citi and the British Business Bank, the latter through its ENABLE Funding programme. A new mezzanine facility has been committed by a global alternative investment firm, and several receivables funding lines from global banks have been both extended and increased.
Legal advisory roles were played by Ashurst on the Barclays forward flow line, while Blake Morgan provided legal counsel on the wholesale and mezzanine facilities. Interpath acted as advisors on the new mezzanine component.
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By GlobalDataThe funding will enable Propel to continue scaling its business, providing vital support to partners and SME customers. The company plans to more than double new lending over the next three years, building on a track record that has seen more than £1 billion lent to over 50,000 SMEs in the last three years alone.
As part of its commitment to digital innovation, Propel has invested over £10 million in its proprietary platform, with particular focus on embedded B2B finance solutions. These advancements aim to simplify the process for SMEs to access funding at the point of sale when investing in new technology.
Mark Catton, CEO of Propel, said: “We are thrilled to have secured this transformative £1.5 billion in funding availability, helping us accelerate our growth and support for our partners and SME customers. We are delighted to work with an outstanding panel of institutional lenders and are incredibly grateful for their exceptional support and confidence in the Propel team.”
Bank of America’s Director of Structured Finance, Andrei Cotonet, said: “We see significant opportunity in the UK asset finance sector and are proud to support Propel’s continued expansion and growth with this strategic funding line. We look forward to seeing the positive impact this partnership will have on businesses across the UK.”
A Citi spokesperson added: “We are pleased to extend our facility with Propel Finance, which will enable Propel to extend their financing solutions to more UK businesses.”
Reinald de Monchy, Co-Chief Banking Officer, Products at the British Business Bank, highlighted Propel’s long-standing role in SME finance: “Propel Finance has been an important delivery partner for the Bank via its participation in the ENABLE Funding programme and more recently, their accreditation to the Growth Guarantee Scheme. We welcome this extension of their committed wholesale facility and look forward to the positive impact this funding round will provide to smaller businesses investing in business-critical assets.”
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