Blackburn finance business receives British Business Bank accreditation
The British Business Bank today announced that it has accredited Blackburn-based Haydock Finance for the Asset Finance variant of the bank’s Enterprise Finance Guarantee (EFG) programme.
This will enable Haydock Finance to increase its supply of asset finance to smaller businesses that are working successfully, but struggling to obtain the finance they need for future growth.
This accreditation follows the provision of a £25m block discounting facility from British Business Investments, a commercial arm of the bank, to Haydock Finance in 2016.
This facility helped grow its asset finance division, providing hire-purchase, leasing and refinance for business assets to smaller businesses wanting to invest and grow.
Jim McAuley, director, guarantee & wholesale solutions, British Business Bank, said: “At the British Business Bank, we want smaller businesses across the UK to be able to access the finance they need to grow and succeed.
“We are delighted to announce that Haydock Finance has been accredited as the latest partner under this variant of the programme, enabling the provision of additional asset finance, a vital funding option for smaller businesses looking to grow, expand, and create jobs.
“Having access to EFG to support critical investment in business assets provides a significant opportunity for many more viable smaller businesses to realise their ambitions.”
Steve Worrall, managing director, Haydock Finance, said: “As an independent company established in 1980, receiving accreditation for the EFG will enable Haydock to increase funding to viable businesses nationwide.
“We value the bank’s flexible approach and having access to EFG will complement our business model and aspirations.
“It will provide Haydock with a strong platform to help our Blackburn-based team of 50 to achieve our strategic plans and objectives to continue to grow our gross receivables above the current level of £200m.”
The Enterprise Finance Guarantee programme facilitates business finance to smaller businesses that are viable, but unable to obtain finance from their lender due to having inadequate security to meet the lender’s normal credit requirements.
EFG provides the lender with a government-backed guarantee for up to 75% of the outstanding balance of eligible facilities, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.
Since its launch in 2009, the Enterprise Finance Guarantee has supported smaller businesses with the provision of more than 29,950 loans and other facilities totalling more than £3.2bn.
Asset finance is an increasingly important option for smaller businesses looking to grow and invest.
Latest figures from the Finance and Leasing Association (FLA) show new asset finance volumes to smaller businesses were £10.9bn in the year to July, increasing by more than 2% on the same period in 2017.
