British Business Bank Investments, the commercial arm of the British Business Bank has agreed to provide a £25m (€32.2m) facility to Haydock Finance.

The three-year funding commitment was structured as a block discounting facility and is part of the Bank’s Investment Programme. This agreement raised the total value of committed funds to asset finance companies by this programme to £110m.

"The programme forms a key part of the Bank’s efforts to increase the diversity and supply of finance for small businesses," the Bank wrote.

According to the Bank, the facility will help Blackburn-based Haydock grow its asset finance division, providing hire-purchase, leasing and refinance for business assets to smaller businesses.

Haydock specialises in financing hard assets, including buses, coaches and mini-buses, heavy and light commercial vehicles, industrial plant and machinery as well as other asset types. It has over £85m of gross receivables and over 2,000 small business customers across the UK.

Steve Worrall, Haydock managing director, said: "As an independent company celebrating our 35th anniversary year, the additional £25m of funding from the British Business Bank will enable Haydock to continue to grow our asset finance portfolio, with particular focus on assisting SMEs with business critical assets. We value the Bank’s flexible approach in embracing our business model and aspirations, and providing an advantageous platform for our Blackburn-based team of 38 to achieve our strategic plans and objectives."

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Simon Goldie, head of asset finance at the FLA, said: "Today’s announcement from the British Business Bank is the latest in a series demonstrating the BBB’s recognition of the importance of leasing and hire purchase as an effective funding mechanism for SMEs."

Last July, Haydock secured funding facilities of £27.5m from the Royal Bank of Scotland and a further £5m from the bank’s asset finance partner, Lombard.