British Business Bank announces £100m facility for LE Capital
The British Business Bank has agreed to back a senior facility of up to £100m, provided by Paragon Bank to LE Capital.
With the guarantee, which was facilitated by the ENABLE Guarantee programme, Paragon Bank will be able to continue to support LE Capital by expanding the amount of financing available.
The facility will back a portfolio exceeding £100m in funding for independent, smaller businesses and used car dealerships, assisting them in funding their stock.
LE Capital partners with both online and physical auction houses to assist dealer wholesale purchases. Since 2017, the company is said to have supported over 100,000 transactions and funded more than £750m in stock.
British Business Bank said the facility's size will allow LE Capital to expand its reach, doubling the number of dealerships it caters to across the UK.
It is also expected to enable support for larger facilities for both independent and franchise dealers while offering competitive pricing to both new and existing customers.
This marks the first instance of the guarantee being utilised in a speciality finance structure, stated British Business Bank.
Additionally, it is the inaugural ENABLE Guarantee transaction that the British Business Bank has supported Paragon with, enhancing the funding capacity Paragon can offer to smaller business finance providers.
The ENABLE Guarantee programme aims to promote increased lending to smaller businesses. Institutions that take part are incentivised by a government-backed guarantee, which supports a specific portfolio of debt finance in exchange for a fee.
It is available to all UK banks, UK branches of foreign banks, asset and asset-based finance providers, as well as other types of lenders.
British Business Bank head of structured FI solutions Michael Strevens said: 'This is the first time we have used pricing to promote electric and hybrid vehicles, the first time we have used the guarantee for speciality finance, and the first time we have worked with LE Capital. We look forward to seeing this finance help independent car dealerships expand and grow, whilst also encouraging their transition to net zero.'
LE Capital CEO George Stancliffe said: 'Independent dealerships in the UK often rely on stock funding to grow revenues and expand operations. This new facility, supported by the British Business Bank, will allow us to double our funding capacity in the UK, offering larger facilities to independent and franchised dealerships while providing more competitive pricing to our existing and future customers.'
"British Business Bank announces £100m facility for LE Capital" was originally created and published by Leasing Life, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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