Specialist finance provider 4Syte has agreed a new facility of up to £100m with NatWest, supported by the British Business Bank under its ENABLE Guarantee scheme, to expand lending to smaller UK businesses.
The agreement will allow 4Syte to double its existing funding lines, unlocking additional capacity in invoice finance and asset-based lending. The British Business Bank will guarantee part of the NatWest facility, reducing the capital required for lending and enabling more firms to access working capital.
The ENABLE Guarantee programme is designed to encourage banks and non-bank lenders to increase their support for smaller businesses by allowing the Government to take on a portion of the risk in return for a fee.
Michael Strevens, managing director for structured financial institution solutions at the British Business Bank, said invoice finance and asset-based lending provided “a flexible and affordable way” for firms to finance their operations.
“Working with a new delivery partner in 4Syte and alongside an established funder like NatWest, demonstrates our commitment to increasing the diversity of providers in the wider lender market,” he added.
Nick Sellars, group managing director of 4Syte, said: “This facility demonstrates the commitment of the British Business Bank, NatWest and 4Syte to the SME sector and its vital role in driving growth across the UK.
“We are delighted to have the opportunity to work alongside such esteemed institutions, and we look forward to continuing our service-lead offering to support and inspire UK businesses.”
Martin Noakes, head of UK structured finance, L&SE and head of corporate ABL at NatWest, said the bank was pleased to extend its partnership with 4Syte.
“With the support of the British Business Bank and the ENABLE Guarantees programme, we are excited to help unlock an important new source of liquidity for UK SMEs,” he said.
The facility is the latest in a series of transactions by the British Business Bank aimed at broadening access to finance for smaller firms, as policymakers continue to push for greater support for the SME sector, widely regarded as a cornerstone of the UK economy.
