British Business Bank backs Propel with £75m funding and ABS investment

The British Business Bank has announced a new £75 million ENABLE Funding facility for asset finance specialist Propel Finance, alongside an investment in the lender’s inaugural public securitisation transaction, marking the Bank’s first participation in a public Asset-Backed Securitisation (ABS) issuance.

The dual transaction forms part of the British Business Bank’s strategy to strengthen funding markets that support lending to UK SMEs, while broadening funding options for specialist lenders operating in the business finance sector.

The new ENABLE Funding facility is complemented by the Bank’s investment in Propel’s Velocity 2026-1 securitisation programme. The transaction represents Propel’s first move into the public ABS market, having previously completed its first private securitisation with support from the British Business Bank in 2022.

The Bank said the deal demonstrates its commitment to supporting lenders throughout their funding lifecycle, from warehouse facilities and private securitisations through to accessing public capital markets.

The relationship between the two organisations dates back to 2016, when the British Business Bank first provided funding support to Propel. Since then, Propel has grown significantly, expanding its reach within the UK SME market and diversifying its funding model.

Velocity 2026-1 attracted backing from 17 global investors, providing Propel with a broader investor base and supporting the continued growth of its origination platform.

British Business Bank Chief Banking Officer Reinald de Monchy said: “Over the last ten years, Propel Finance has evolved from a relatively small lender with strong potential into an established and trusted major player in the UK asset finance market. We are proud to have supported it on that growth journey.

“Today’s transactions reflect our ongoing commitment to expanding funding options for smaller businesses and lenders, while also supporting the continued development of the UK’s business securitisation markets. This public ABS transaction was an excellent result.”

Propel Finance CEO Mark Catton said the Bank’s long-term support had been instrumental in the lender’s development.

“The British Business Bank is an excellent partner and its support over a number of years has been instrumental in Propel’s growth and our reach into the SME ecosystem,” he said.

“When our initial ENABLE Funding facility was established in 2016, we had written around £10 million in asset finance for SMEs. Since 2018, we’ve provided more than £2 billion in funding to over 70,000 businesses.

“Our debut public securitisation marks a significant milestone for Propel. We attracted a roster of global investors and were delighted that the Bank chose Propel to make its first foray into Public ABS.”