Independent Growth Finance (IGF) has received £30m (€34m) from British Business Investments, the commercial arm of British Business Bank, to be used for asset-based lending to SMEs.
The £30m will be lent to SMEs who offer services and goods to other businesses, and can be secured against property, plant and machinery or inventory stock. IGF’s client base consists of SMEs with annual turnovers ranging from £0.5m to £100m.
John Onslow, IGF chief executive officer, said: “Ten years on from the financial crisis, UK SMEs are still struggling to access the finance they need to grow their businesses. Our partnership with British Business Investments will provide much needed finance to SMEs.
“The finance we will be providing allows them to unlock the value of the assets they own and use them to borrow funds to expand and create jobs. We think that we have only begun to scratch the surface in this form of finance. It has enormous growth potential.”
Catherine Lewis La Torre, chief executive officer at British Business Investments, added: “For innovative smaller businesses, asset-based lending can be the key to unlocking rapid growth without losing control of their business.
“This £30m commitment with IGF is another vital step in supporting businesses that are looking to expand, and is a further demonstration of our commitment to increasing the diversity of finance available to small businesses.“