Latest news with #GrowthGuaranteeScheme
Yahoo
6 days ago
- Business
- Yahoo
Paragon secures £27m in funding for SME lending
The British Business Bank's Growth Guarantee Scheme (GGS) has allocated £27m to Paragon Bank, a specialist lender and savings bank providing a range of products and services in the UK. Succeeding the Recovery Loan Scheme, the GGS provides accredited lenders with a government-backed guarantee while borrowers remain fully liable for the debt. It aims to improve access to finance for UK small and medium enterprises (SMEs) seeking to invest and grow. The additional £27m funding increases Paragon Bank's total lending capacity under the scheme to £55m. Of this, £10m is designated specifically to support UK businesses affected by changes in international trade tariffs. A targeted £7m fund has been set aside for businesses impacted by shifting trade tariffs, particularly in sectors such as manufacturing, which have faced increased costs and supply chain complexities. Paragon has so far provided over £40m in GGS-backed funding to more than 300 SMEs, supporting investment and growth in sectors including construction, transport, and agriculture. The new allocation will allow Paragon to further expand its support, offering both unsecured loans and asset-based finance to businesses that may struggle to access capital. Paragon Bank SME Lending deputy managing director Phil Hughes said: 'The additional funding from the British Business Bank is a welcome boost and a clear vote of confidence in our ability to deliver meaningful support to UK SMEs. 'We've already seen the transformative impact of the Growth Guarantee Scheme, and with this new allocation, we're ready to support even more businesses on their growth journeys.' In a separate development, UK bank Aldermore has confirmed its accreditation as a lender under the invoice finance and term loan variants of the GGS, having previously participated in the Recovery Loan Scheme. For its invoice finance offering, Aldermore provides a maximum facility of £2m per business group, with a fixed value up to the facility review limit, as determined by the bank. Facility limit increases may be considered for extraordinary events, but cannot include inter-company debt, aged debtors, or disputed debt. Aldermore's Term Loan offering under the GGS operates alongside its invoice finance facility, providing loans ranging from £25,000 to £2m per business group, with term lengths available from three months to six years. Aldermore invoice finance business development head Chris Meldrum said: 'As a long-standing partner in government-backed lending schemes, it's a natural step to now offer the invoice finance variant of the Growth Guarantee Scheme. 'This initiative allows us to continue providing vital financial solutions that help businesses invest, scale, and drive economic growth.' "Paragon secures £27m in funding for SME lending" 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-07-2025
- Business
- Yahoo
British Business Bank achieves £2.5bn in Growth Guarantee lending
The British Business Bank has achieved £2.5bn ($3.3bn) in lending through its Growth Guarantee Scheme, a programme designed to enhance access to finance for smaller UK businesses. This scheme has seen 69% of its lending directed to businesses outside London and the southeast, highlighting its broad geographic impact. In particular, more than £200m of lending has been provided in the North West, West Midlands, East of England, and Yorkshire and the Humber regions. The strategy supports a diverse range of industry sectors across the UK, including over £368m for manufacturing, more than £366m for wholesale and retail, and over £234m for the construction sector. Launched on 1 July 2024, the Growth Guarantee Scheme offers a variety of financial products through accredited lenders, such as term loans, overdrafts, asset finance, invoice finance, and asset-based lending. The initiative can back facility sizes of up to £2m, providing lenders with a 70% government-backed guarantee, while borrowers remain 100% liable for the debt. British Business Bank chief banking officer Reinald de Monchy said: 'This milestone is a demonstration of the important work done by the 50+ delivery partners who have signed up to the Growth Guarantee Scheme, since its launch in July 2024. In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported. 'The government's recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.' A new agreement was recently signed between the British Business Bank and Rural Asset Finance, aiming to unlock around £120m in funding for smaller rural and agricultural businesses across the UK. The facility is supported by funding from NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of NatWest's contribution. The agreement also features sustainability-linked incentives that may reduce borrowing costs if environmental performance targets are met. "British Business Bank achieves £2.5bn in Growth Guarantee lending" 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Paragon Bank supports UK SMEs with over $41m in funding
Paragon Bank has offered more than £31m ($41.8m) in funding to more than 200 small and medium-sized enterprises (SMEs) through the British Business Bank's Growth Guarantee Scheme (GGS). This initiative, part of the UK Government's broader support for British enterprise, has allowed Paragon to extend financial support to businesses across various sectors, including agriculture, construction, manufacturing and transport. Paragon said the scheme's impact has been 'significant', allowing it to facilitate business investments that would likely have been unfeasible without this support. The GGS offers unsecured loans and asset-based finance, with the volume of lending and the number of businesses supported growing daily. The scheme is set to run until March 2026, offering Paragon insights to inform future credit appetite and broaden its customer reach. Earlier this month, the government announced an additional £10.3bn in funding for the British Business Bank, including £500m in extra lending capacity for the GGS. Paragon continues to collaborate with the British Business Bank to allocate more GGS funding, supporting both existing and new customers. Paragon Bank's SME lending deputy managing director Phil Hughes said: 'The Growth Guarantee Scheme has been a powerful tool and resounding success in helping us extend more support to ambitious UK businesses who need it. 'We have already seen what a difference it can make in unlocking funding, especially for sectors vital to the economy and productivity, such as construction and agriculture, where upfront investment can be a major barrier. The early success and scale of demand speak volumes – and with the right backing, we are ready to do even more.' In the first half of its fiscal year, Paragon noted a 7.3% rise in new loans within its SME lending sector. For the six months ending 31 March 2025, the bank recorded £247m in SME lending loans, up from £230.2m in the same timeframe the previous year. Asset finance, a core element of the division, grew by 11.1% to £169.9m, outperforming the market average growth of 6.4%. "Paragon Bank supports UK SMEs with over $41m in funding" 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.
Yahoo
09-06-2025
- Business
- Yahoo
Paragon Bank logs 7.3% growth in new SME lending loans
Paragon Bank has reported a 7.3% increase in new loans in its SME lending business during the first half of its financial year. For the six months ending 31 March 2025, Paragon registered £247m ($334m) in SME lending loans, compared with £230.2m in the same period a year ago. Asset finance, a key component of the division, saw an 11.1% growth to £169.9m, surpassing the market average of 6.4%. Additionally, the period marked Paragon's first loans under the UK Government's Growth Guarantee Scheme, with £18.3m in loans written under this initiative. The broker portal, which was launched two years ago as part of Paragon's digitalisation strategy, has continued to positively impact the business. Nearly 60% of applications are input directly, up from just under 50% in the prior year. The system currently manages almost 90% of new SME lending business. The new system utilises various tools to support decision-making, with one in three cases on the platform eligible for auto-decisions. This allows specialist underwriters to focus on more complex cases. These changes have reduced processing time from application to approval by 60% year-on-year, the company highlighted. Paragon SME lending managing director John Phillipou said: 'Despite a difficult environment for SMEs, with increased costs and the disruption of global events, they continue to show ambition and resilience, and we were pleased to record an increase in lending, particularly within asset finance. 'Additionally, our broker portal continues to drive improved performance, with more applications going through the system, plus conversion and approval rates increasing. We have commenced the replatforming of our back-end system, which will drive further efficiencies and improved customer experience.' Paragon posted a 5.2% growth in pre-provision profits and a 2.1% growth in underlying profits, which increased to £149.4m. The loan book climbed by 4.9% to £16bn, with lending rising 11.4% to £1.38bn, including growth in development finance and buy-to-let mortgages. Last month, Paragon raised the automatic decision-making threshold for SME lending from £100,000 to £150,000, which the lender describes as 'reflecting ongoing investment in technology' and a deepening focus on faster credit delivery. "Paragon Bank logs 7.3% growth in new SME lending loans" 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. Sign in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
Broker channel drives lending at Paragon Bank surge amid £6.5m motor finance provision
Paragon Banking Group leaned on strong broker-led SME activity and robust mortgage lending to deliver a 26.7% surge in pre-tax profits in the first half of its financial year, helping to absorb a £6.5 million provision related to motor finance complaints. Pre-tax profit rose to £149.4 million for the six months to 31 March 2025, up from £118 million in the same period last year. The FTSE 250 lender attributed much of the growth to a 4.9% increase in its loan book, as well as a sharp uptick in mortgage and SME lending via broker channels. Paragon's SME Lending business reported a 7.3% rise in new loans to £247 million, while the overall SME loan book grew 9.4% to £853.1 million. Asset finance, accounting for the largest share of the SME division, jumped 11.1% to £169.9 million, well ahead of the market average of 6.4%. Managing Director of SME Lending at Paragon Bank, John Phillipou, said the bank's digital broker portal was a key driver of performance. 'More applications are going through the system, plus conversion and approval rates [are] increasing,' he said. Nearly 60% of SME loan applications were submitted directly by brokers, with the portal now handling close to 90% of new SME lending. One in three cases are eligible for automatic decisions, allowing underwriters to focus on complex cases. The digitalisation push has slashed average approval times by 60% and nearly halved the time from application to payout. Phillipou added that Paragon had also issued £18.3 million in loans under the Government's new Growth Guarantee Scheme during the period. British Business Bank hits £5bn in structured guarantee programmes Paragon half-year results Group-wide, lending grew 11.4% to £1.38 billion, boosted by a 25.1% rise in mortgage volumes to £810 million. The increase came as borrowers rushed to complete purchases ahead of Chancellor Rachel Reeves' stamp duty threshold reductions. Meanwhile, commercial lending slipped 3.7% to £570 million, largely due to timing delays in structured finance repayments. Despite the strong performance, Paragon took a £6.5 million provision related to its motor finance division, amid a wider industry fallout over historic commission arrangements. The case, now before the UK Supreme Court, could have far-reaching implications for banks if prior commissions paid without customer consent are ruled unlawful. While Paragon's exposure remains small relative to peers, Lloyds has provisioned £1.2 billion, the lender acknowledged the uncertainty ahead. Operating expenses fell slightly to £89.3 million, and the bank maintained its net interest margin at 3.13%, showing resilience in a tight lending environment. Paragon also extended its share buyback programme by £50 million, taking the total for the year to £100 million. Chief Executive Nigel Terrington said the bank had 'strong momentum' and a 'resilient business model,' adding: 'We are well placed to navigate the evolving external environment and remain optimistic about the remainder of the financial year and beyond.' "Broker channel drives lending at Paragon Bank surge amid £6.5m motor finance provision" 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.
