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November 23, 2020

Compass secures £15m block discounting from British Business Investments

By Hannah Wright

UK finance provider Compass Business Finance has secured a £15m ($20m) commitment from British Business Investments (BBI), which will allow it to increase its funding of asset finance products for UK-based smaller businesses active in the print, packing and manufacturing sectors.

Under block discounting arrangements the lessor typically ‘sells’ the rights to multiple finance agreements to a larger entity, such as the BBI.

In a statement, BBI said it will provide Compass with funding for SMEs over the next three to five years, “enabling the continuation of its own growth trajectory”.

Compass Business Finance has partnered with the British Business Bank (BBB) for many years and has participated in numerous initiatives designed to support UK business, such as the Regional Growth Fund and Enterprise Finance Guarantee.

Most recently, the two collaborated to provide businesses with the Coronavirus Business Interruption Loan Scheme (CBILS), launched by the Government in March 2020.

Mark Nelson, director of Compass Business said: “The commitment from British Business Investments will enable us to meet the growing demand for funding in our markets, including the provision of CBILS and other asset-based finance. Having the ability to support our customers and maintain our high service levels is paramount, and this partnership gives us the confidence to know that we can continue provide that.”

A commercial subsidiary of the BBB, BBI works to increase the overall supply and diversity of finance on offer to UK smaller businesses.

Judith Hartley, chief executive at British Business Investments, commented: “British Business Investments supports independent operators in the asset finance sector by providing additional funding and widening the choice of finance options that smaller businesses across the UK can access on the market. We look forward to working with Compass Business Finance Ltd over the next five years to help those businesses get the finance they need.”

The CBILS provides facilities of up to £5m for smaller businesses across the UK that have been impacted by coronavirus. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

Compass is accredited by the BBB to offer term loans, sale and hire purchase back, and asset finance facilities.

Data released on 15 November 2020 by HM Treasury revealed that 77,909 CBILS loans had been delivered, totalling £18.46bn. The total number of applications, up to the specified period, stood at 173,556.

Compass Business Finance provide financial solutions – such as cash flow support, cash injections, or restructuring debts – to individual businesses.

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