Kingsway Finance, a Cheshire-based asset finance specialist and alternative lender, has secured £25m funding facility to support its growth plans.
The funding was secured from British Business Investments (BBI), a commercial subsidiary of the British Business Bank.
The revolving credit facility provided through BBI’s Investment Programme, is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.
The facility will be used to support Kingsway’s growth plans for the provision of lease finance, commercial loans and professions loans to smaller businesses across the UK.
Adrian Anthon, managing director of Kingsway, said: “Kingsway Finance is delighted to continue our strong relationship with British Business Investments and this new £25m commitment will enable us to continue our growth and support UK SMEs in the months and years ahead.”
The £25m facility follows a previous commitment made to Kingsway Finance Ltd by British Business Investments.
Catherine Lewis La Torre, CEO of British Business Investments, said: “Use of SME asset finance continues to grow, increasing by 6.5% over the year to July 2019. We are therefore pleased to provide this additional support to Kingsway so they may increase their leasing capacity to smaller businesses across the UK.
Peadar O’Reilly managing director of Praetura Group Ltd, said: “The provision of this follow on facility from British Business Investments and the certainty of funding it delivers, is a great validation of the business’s core SME proposition and is a key part of our diversified funding capability.”
Since BBI’s Investment Programme began in 2013, it has committed more than £150m to six asset finance providers.
