British Business Bank increases Performance Finance facility to £30m

The British Business Bank has increased its funding facility with specialist professional lender Performance Finance Limited to a maximum of £30 million, supporting further lending to smaller businesses across the UK.

The agreement builds on the £15 million facility completed between the two organisations in April 2024 and will provide Performance Finance with additional capacity to grow its lending.

Based in Kettering, Northamptonshire, Performance Finance provides finance leases, business loans and hire purchase facilities to independent professionals, predominantly within the medical and legal sectors.

Its customers include opticians, dentists, vets, doctors, solicitors, barristers and accountants.

According to the British Business Bank, the increased facility will support Performance Finance’s growth while enabling it to pass on benefits from lower funding and management costs to customers.

The transaction has been completed through the Bank’s Investment Programme, which aims to increase the supply and diversity of finance available to viable but underserved smaller UK businesses.

Through the programme, the British Business Bank invests on commercial terms in senior, mezzanine, unitranche and subordinated debt instruments provided by participating finance providers.

Michael Strevens, Managing Director, Structured Financial Institutions Solutions at the British Business Bank, said:

“This increased facility with Performance Finance Limited recognises the important role specialist lenders play in ensuring smaller businesses can access the right type of finance at the right time.

“Performance Finance’s roots in professional services lending means it is well placed to support professional services businesses across the country. We enjoy working with a lender whose sector expertise makes a meaningful difference to their customers.”

Stuart Burn, Managing Director at Performance Finance, added: “We are delighted that the British Business Bank have increased their facility with us.

“They have been a great support to the growth of Performance Finance over many years and more importantly help provide UK professionals with access to flexible competitive funding. Our relationship goes from strength to strength.”

The increased facility forms part of the British Business Bank’s wider objective of working with private sector finance providers to increase the range and availability of funding for smaller UK businesses.