Propel Finance has secured a landmark £1.5 billion funding facility to expand its lending operations and support small and medium-sized enterprises (SMEs) across the UK.
The UK-based asset finance provider confirmed the funding was backed by a group of leading financial institutions including Barclays, Bank of America, Citi, and the British Business Bank. The injection of capital will enable Propel to accelerate access to finance for businesses in critical sectors including manufacturing, construction, transport, technology and telecoms.
Legal advisers on the deal included Ashurst and Blake Morgan, while Interpath Advisory supported the transaction through a mezzanine facility advisory role.
Mark Catton, CEO of Propel Finance, hailed the funding as a “transformative” step in the firm’s mission to empower more SMEs with flexible asset finance.
“We are thrilled to have secured this transformative £1.5 billion in funding availability, helping us accelerate our growth and support for our partners and SME customers,” said Catton. “We are delighted to work with an outstanding panel of institutional lenders and are incredibly grateful for their exceptional support and confidence in the Propel team.”
The new facility marks one of the largest SME-focused funding deals this year and comes at a time when small businesses face increased pressure from high borrowing costs, supply chain challenges, and lingering economic uncertainty. Propel’s offer of asset-backed finance provides a route for smaller firms to invest in vital equipment and technology without stretching cash flow.
Founded to support underserved small business lending markets, Propel Finance offers a range of asset finance solutions, including equipment leasing, hire purchase and refinancing. The firm has been growing steadily, forging partnerships with equipment suppliers, manufacturers and technology providers to deliver point-of-sale finance solutions to end users.
The funding will enable Propel to significantly scale its reach, allowing more SMEs to access financing through digital platforms and vendor relationships.
Andrei Cotonet, director of structured finance at Bank of America, said: “We see significant opportunity in the UK asset finance sector and are proud to support Propel’s continued expansion and growth with this strategic funding line. We look forward to seeing the positive impact this partnership will have on businesses across the UK.”
The British Business Bank’s involvement is expected to support the government’s wider efforts to increase SME access to finance and fuel growth in the UK’s business ecosystem.
The new funding is also likely to cement Propel’s position as one of the leading non-bank lenders in the SME finance space, as appetite for alternative finance grows amid tighter credit conditions from traditional banks.
With SMEs accounting for over 99% of UK businesses and employing around 16 million people, access to funding is considered vital for driving investment, innovation, and regional growth. Propel’s expanded facility is expected to help thousands more companies invest in equipment and growth without large upfront costs.
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Propel Finance secures £1.5bn to boost UK SME lending