British Business Bank lifts Compass debt facility to £45M
What's the deal? The British Business Bank has extended its funding facility with Compass Business FinanceDealroom has a profile for this one. Try Dealroom → to up to £45 million, supporting the Kent-based lender's growth and its onward lending to UK SMEs.
Who they are: Founded in 2005, Compass is an independent asset finance funder and broker providing finance leases, hire purchase, and business loans to smaller businesses across the UK. It has backed thousands of companies investing in equipment and technology.
The mechanics: The debt facility builds on an initial £15 million commitment in 2020, later raised to £30 million in 2022. It is delivered through the British Business Bank's Investment Programme, which aims to increase competition and the supply of finance to underserved smaller firms.
What's the endgame? The larger facility is expected to let Compass grow its loan book and finance more SMEs. It also participates in the British Business Bank's Growth Guarantee Scheme.
"This is a significant facility that will increase our ability to support SMEs across the UK," said Mark Nelson, co-founder and director at Compass, adding it would help more businesses "invest, grow and achieve their ambitions."
The signal: The third increase in six years points to a steady state-backed push to route capital toward viable but underserved smaller businesses. As Michael Strevens of the British Business Bank put it, the deal strengthens "the flow of finance to smaller businesses across the country."
Read more: finance-connect.com
Image credit: Generated with Gemini
