The British Business Bank has agreed a £75 million facility with Propel Finance, the UK’s fastest-growing asset finance provider.
Propel has lent £2 billion to more than 70,000 businesses over the last decade. The new £75m ENABLE funding facility has been announced alongside investment in its first public securitisation, Velocity 2026-1.
This is the first time the Bank has invested in a Public Asset-Backed Securitisation (ABS) issuance, having supported Propel with its first private securitisation in 2022.
It says the transactions demonstrate the Bank’s strategy of supporting business securitisation markets to enhance funding options for lenders that provide finance to UK small and medium enterprises.
The British Business Bank has supported the development of Propel Finance since 2016, helping the lender scale and diversify its funding model, through providing warehouse facilities to fund its business lending.
Propel’s Velocity 2026-1 ABS issuance marks an important step in Propel’s progression into the public markets, attracting 17 global investors and supporting diversification of its funding and continuing growth in its origination platform.
The new warehouse funding line via the ENABLE Funding programme shows the British Business Bank’s continued engagement and ability to support delivery partners through different stages of their funding journey – from warehouse growth, through private securitisation, to accessing public markets.
Reinald de Monchy, Chief Banking Officer at the British Business Bank, said: “Over the last ten years, Propel Finance has evolved from a relatively small lender with strong potential into an established and trusted major player in the UK asset finance market. We are proud to have supported it on that growth journey.
“Today’s transactions reflect our ongoing commitment to expanding funding options for smaller businesses and lenders, while also supporting the continued development of the UK’s business securitisation markets. This public ABS transaction was an excellent result.”
Mark Catton, CEO at Propel, said: “The British Business Bank is an excellent partner and its support over a number of years has been instrumental in Propel’s growth and our reach into the SME eco-system. When our initial ENABLE Funding facility was established in 2016, we had written around £10m in asset finance for SMEs. Since 2018, we’ve provided more than £2bn in funding to over 70,000 businesses.
“Our debut public securitisation marks a significant milestone for Propel. We attracted a roster of global investors and were delighted that the Bank chose Propel to make its first foray into Public ABS.”