British Business Bank doubles Performance Finance facility to £30m
What's the deal? The British Business Bank has increased its debt facility with Performance FinanceDealroom has a profile for this one. Try Dealroom → to a maximum of £30 million ($40.5 million), giving the specialist lender more capacity to fund smaller UK businesses.
Who's involved? Kettering-based Performance Finance provides finance leases, business loans, and hire purchase facilities to independent professionals, mainly in the medical and legal sectors. Its customers include opticians, dentists, vets, doctors, solicitors, barristers, and accountants.
Why now? The deal doubles the £15 million facility the two agreed in April 2024. The British Business Bank says the extra capacity lets Performance Finance grow while passing on lower funding and management costs to customers.
What's the endgame? The transaction runs through the Bank's Investment Programme, which aims to increase the supply and diversity of finance for viable but underserved smaller businesses. The programme invests on commercial terms in senior, mezzanine, unitranche, and subordinated debt.
"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," said Michael Strevens, managing director of structured financial institutions solutions at the British Business Bank.
Stuart Burn, managing director at Performance Finance, said the Bank has "been a great support to the growth of Performance Finance over many years."
The signal: The backing of the government-owned British Business Bank lends weight to a niche corner of UK lending. By channelling capital through sector-focused specialists, it is betting that expertise — not scale — is what reaches the smaller firms mainstream banks overlook.
Read more: finance-connect.com
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