The British Business Bank has extended its asset finance facility with Kent-based lender Compass Business Finance to expand funding for UK SMEs.
The British Business Bank has extended its facility with Kent-based lender Compass Business Finance to £45m. This latest transaction builds on an initial £15m commitment made in 2020, which was previously expanded to £30m in 2022.
Founded in 2005, Compass Business Finance operates as an independent asset finance funder and broker, providing finance leases, hire purchase agreements, and business loan facilities to smaller enterprises across the UK. The increased facility will support the lender as it expands its loan book to meet growing demand from SMEs seeking equipment and technology investments.
Delivered under the British Business Bank’s Investment Programme, the capital allocation aims to stimulate competition and increase the availability of debt finance for viable, underserved commercial sectors. In addition to the Investment Programme, Compass Business Finance has participated in the bank’s Growth Guarantee Scheme (GGS) since 2020 to broaden access to growth funding.
Managing Director of Structured Financial Institutions Solutions at the British Business Bank, Michael Strevens, commented, “Completing this transaction with Compass Business Finance represents an important step in strengthening the flow of finance to smaller businesses across the country. This partnership will support more businesses to invest, grow and build resilience. Through this, we can ensure that smaller firms across all regions have access to the finance they need to drive productivity and contribute to a thriving local economy.”
Co-Founder and Director at Compass Business Finance, Mark Nelson, added, “We are delighted to further strengthen our relationship with the British Business Bank. This is a significant facility that will increase our ability to support SMEs across the UK, enabling more businesses to access the funding they need to invest, grow and achieve their ambitions. It is an important step in supporting our continued growth while maintaining the service and flexibility our customers value.”
Both financial institutions will deploy the expanded funding across regional business networks throughout the UK to drive business productivity and local economic growth.