UK-based independent asset finance provider Propel has announced two further financing tranches from the British Business Bank to add to its existing ENABLE funding facility.

The total facility will allow more than £216m of finance to be provided to various SMEs across the UK, making it one of the largest facilities under the Bank’s ENABLE Funding programme, which aims to provide asset finance solutions to smaller UK businesses.

Reinald de Monchy, the managing director of guarantee and wholesale solutions for the British Business Bank, said: “The British Business Bank developed the ENABLE Funding programme to allow access to cost-efficient funding from institutional investors for providers of finance to smaller businesses. By partnering with alternative and non-bank lenders, like Propel, we can give smaller UK businesses access to the asset and lease finance they need.”

Propel is currently supporting approximately 40,000 customers, providing hire purchase, leasing and refinancing support on equipment purchases. Last year, Propel partnered with Barclays to offer vehicle finance through an online platform.

The ENABLE funding programme supports the Bank’s objective to diversify finance markets for UK-based SMEs. Providers of finance to SMEs often lack the scale required to access capital markets – a key source of funding for lending institutions – in a cost-efficient way.

The programme warehouses newly-originated finance receivables from different originators – bringing them together into a new structure. Once the structure has sufficient scale, it will refinance a portion of its funding on the capital markets, also helping small finance providers to tap into institutional investors’ funds.

Mark Catton, who is the CEO of Propel, said: “We’re proud to work with the British Business Bank to help support UK businesses across all equipment types. Our partnerships gives us reach into all sectors of the economy, and all types of businesses. The ENABLE Funding programme helps us translate that reach into fast and accessible finance for SMEs wanting to invest and grow”.