British Business Investments makes £15m Tier 2 capital facility available to PCF Bank
British Business Investments (BBI), a commercial subsidiary of the British Business Bank, has announced a new £15m Tier 2 capital facility to specialist bank, PCF Bank.
PCF Bank has a long history as a specialist financier of vehicles, plant and equipment. Established in 1994, and launching banking services in 2017, PCF Bank has helped more than 18,000 customers with purchasing business critical assets for their businesses.
The facility will enable the Bank to draw on additional capital as required, allowing it to utilise capital in an efficient and earnings enhancing manner as the business grows. This investment could support up to an additional £125m of asset-based lending to UK smaller businesses.
The £15m capital investment is a Tier 2 capital facility provided through BBI’s Investment Programme, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders. Since it launched in 2013, the Investment Programme has committed over £900m to providers of finance to UK smaller businesses.
Catherine Lewis La Torre, CEO of British Business Investments, said: “This commitment to PCF Bank supports British Business Investments’ objective to increase the diversity of supply of business finance. Banks like PCF help diversify the finance market, and in turn contribute to more choices for smaller businesses across the UK.”
Scott Maybury, CEO of PCF Bank, said: “PCF has been helping UK SMEs purchase the assets they need for over 20 years. Since launching as a bank in 2017 we have been able to increase the size of our lending book driving profitability in a sustainable way. This facility from British Business Investments will allow us to continue to grow and support the UK private sector.”
The Investment Programme unlocks increased development capital to speciality lenders and challenger banks serving smaller businesses and enables BBI to support the development of diverse finance markets.