The British Business Bank has agreed a transaction of up to £300m with Close Brothers under its ENABLE Guarantees programme, as it looks to unlock further lending to small and medium-sized businesses across the UK.

The agreement will support a portfolio of finance within Close Brothers Asset Finance, spanning hire purchase, sale and hire purchase back, and leasing arrangements. It comes at a time when demand for asset finance among smaller firms is growing sharply, with the market hitting a record £23.5bn in 2024.

Asset finance allows SMEs to invest in vital capital assets – such as vehicles, machinery and equipment – without tying up cash flow. It is also seen as a route for businesses to accelerate the transition to more sustainable operations by enabling the acquisition of greener assets. According to the Finance & Leasing Association, asset finance accounted for one-third of all UK investment in business equipment last year.

FLAGSHIP PROGRAMME

The ENABLE Guarantees programme is a flagship British Business Bank initiative designed to increase the supply of lending to smaller firms. By offering lenders a government-backed guarantee on qualifying portfolios, the programme reduces the risk of lending and encourages institutions to extend more finance to viable SMEs.

Michael Strevens, managing director for structured financial institutions at the British Business Bank, said the deal demonstrates both organisations’ shared commitment to the SME market.

“Close Brothers is a trusted and long-standing finance provider to thousands of UK smaller businesses,” he said. “This transaction reflects both institutions’ commitment to ensuring small businesses continue to access the finance they need — especially in tougher times. We’re pleased to support this deal that helps Close Brothers to provide even greater support to smaller businesses across the UK.”

Close Brothers Commercial, which includes the bank’s asset finance division, currently lends around £5bn to UK businesses, with loan sizes ranging from £5,000 to £100m.

Matt Roper, CEO of Close Brothers Commercial, welcomed the agreement: “We are a proud supporter of the UK’s SME community and are delighted to be participating in the ENABLE Guarantees programme, in partnership with the British Business Bank.

“Close Brothers Commercial – which our asset finance business is a key part of – provides almost £5bn of lending to business owners, with loan sizes ranging from £5k to £100m; the ENABLE programme will allow us to support a larger number of firms as they look to invest in their future.”

Close Brothers is already an accredited delivery partner for several other British Business Bank schemes, including the Growth Guarantee Scheme and previous pandemic-era initiatives such as the Recovery Loan Scheme, Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme.