Latest news with #GrowthGuaranteeScheme
Yahoo
3 days ago
- 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.
Fibre2Fashion
01-05-2025
- Business
- Fibre2Fashion
UK mid-sized firms eye global growth despite trade woes: BDO
Nearly one in three UK mid-sized businesses are prioritising overseas expansion or exports in the next 12 months, despite ongoing global trade challenges, according to new research from BDO. The survey of 500 business leaders reveals that 32 per cent of firms are actively planning international growth strategies, with 37 per cent expecting to increase exports—rising to over 50 per cent among retail, wholesale, and technology sectors. Target markets include Africa (35 per cent), Australia (38 per cent), and Asia (30 per cent), while 41 per cent plan to boost exports to the European Union in 2025. The findings highlight a resilient push for growth among the UK's mid-sized firms, which generated £1.6 trillion (~$2.144 trillion) in turnover last year. Firms are taking proactive steps to navigate supply chain disruption and new tariffs by developing alternative routes into international markets. However, barriers remain: 35 per cent of respondents cited skills shortages in export and supply chain operations, and 30 per cent flagged weakened consumer demand as a key challenge—climbing to 43 per cent for manufacturers. "Although conditions remain challenging, the UK's mid-sized businesses are highly ambitious and have their sights firmly set on driving growth. Generating £130 billion (~$174.2 billion) in revenue from overseas trade alone last year, these businesses are the strongest engine for our economy, Richard Austin, partner at BDO said in a release. Despite mounting pressures, 95 per cent of businesses are hopeful about the UK government's upcoming Small Business Strategy. Among them, 23 per cent are calling for simplified customs procedures and stronger export support, including increased funding through UK Export Finance and the British Business Bank's Growth Guarantee Scheme. "The forthcoming Small Business Strategy is one of many major opportunities for the government to provide targeted support for the mid-market, simplify regulation and enable mid-sized businesses to deliver their plans for growth – all of which will be vital to boosting our economy," Austin added. Nearly one in three UK mid-sized firms plan overseas expansion despite trade challenges, said BDO. With $174.2 billion in export revenue and $2.144 trillion in turnover last year, 37 per cent aim to grow exports, especially to the EU, Australia, and Africa. Most support the government's upcoming Small Business Strategy, calling for reduced red tape and better export aid. Fibre2Fashion News Desk (HU)
Yahoo
14-04-2025
- Business
- Yahoo
US tariffs prompt BBB to expand Growth Guarantee Scheme
The Chancellor has announced an additional £500 million in lending capacity under the Growth Guarantee Scheme (GGS) to support smaller UK businesses dealing with cashflow difficulties linked to recent changes in global tariff rates. Delivered through the British Business Bank (BBB) and around 50 accredited lenders, the scheme has already enabled £2.1 billion in finance via 13,447 facilities. The new funding will be channelled into term loans, overdrafts and similar financial products to support smaller businesses affected by global trade disruptions. The scheme offers facilities of up to £2 million per business group for firms outside the scope of the Northern Ireland Protocol, and up to £1 million for businesses within it. Each facility is backed by a 70% government guarantee, though borrowers remain fully liable for the debt. Businesses must demonstrate they can afford the additional finance, which can be used for a range of purposes including working capital and cashflow management. Lenders retain discretion over loan approvals and will apply their usual credit and fraud checks. Interest rates and fees will vary based on the specific terms offered by each lender and will reflect the benefit of the government-backed guarantee. Reinald de Monchy, Co-Chief Banking Officer at the British Business Bank, stated that the scheme has historically supported smaller firms during periods of economic uncertainty and that the new funding would help maintain access to finance at a time of global market disruption. The additional capacity follows the Autumn Budget 2024, in which the government confirmed more than £1 billion in funding for the British Business Bank's initiatives through 2025/26. This included continued support for Start Up Loans, the ENABLE Build programme for smaller housebuilders, and equity programmes targeted at high-growth sectors such as life sciences. Information about accredited lenders is available on the British Business Bank website. Businesses are encouraged to first contact their current finance provider or explore alternative lenders if necessary. "US tariffs prompt BBB to expand Growth Guarantee Scheme" 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
17-03-2025
- Business
- Yahoo
Novuna Business Finance partners with BBB for green asset finance pilot
Novuna Business Finance has announced a partnership with the British Business Bank (BBB) to pilot a green asset finance variant of the Bank's Growth Guarantee Scheme. The initiative is designed to support smaller businesses in accessing funding for green assets that facilitate the transition to a low-carbon economy. The pilot will focus on financing assets such as electric vehicles (EVs), EV chargers, solar photovoltaic panels, heat pumps, wind turbines, battery storage systems, and biomass. Leveraging the existing infrastructure of the Growth Guarantee Scheme, the programme aims to increase the availability of affordable finance for businesses investing in sustainable technologies. The launch comes as small businesses place greater emphasis on sustainability. Novuna Business Finance research found that 88% of SMEs consider sustainability more important at the start of 2025 than a year ago. Similarly, the British Business Bank's Small Business Finance Markets report highlighted that 53% of smaller businesses are prioritising environmental sustainability over the next year. Geoff Maleham, Managing Director of Novuna Business Finance, said: 'We are proud to be working with the British Business Bank as their chosen lender on this innovative pilot. At Novuna Business Finance, sustainability is at the heart of our business, and we are committed to supporting SMEs in their journey towards Net Zero.' The Growth Guarantee Scheme, facilitated by the British Business Bank and delivered through its accredited lenders, provides facilities of up to £2 million to businesses that might otherwise struggle to secure financing. Launched on 1 July 2024, it supports various financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Novuna is a trading name of Mitsubishi HC Capital UK PLC. "Novuna Business Finance partners with BBB for green asset finance pilot" 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.
