British Business Bank extends Compass Business Finance facility to £45m

The British Business Bank has extended its funding facility with Kent-based lender Compass Business Finance to up to £45m, strengthening the company’s ability to provide finance to small and medium-sized businesses across the UK.

This latest transaction follows an initial £15m commitment in 2020 which was increased to £30m in 2022. Founded in 2005, Compass Business Finance is an independent asset finance funder and broker, providing finance leases, hire purchase and business loan facilities to smaller businesses. The company has supported thousands of businesses with investment in equipment and technology designed to improve productivity, support expansion and drive innovation.

The increased facility will enable Compass to continue growing its loan book and extend its support to more SMEs looking to invest in their businesses.

The transaction has been delivered through the British Business Bank’s Investment Programme, which is designed to increase the supply and diversity of finance available to viable but underserved smaller businesses. The programme works with private-sector finance providers and can invest in a range of debt instruments on commercial terms.

Compass has also participated in the British Business Bank’s Growth Guarantee Scheme (GGS) and Investment Programme since 2020, further strengthening its role in providing finance to smaller UK businesses.

Supporting SME growth

Michael Strevens, Managing Director, Structured Financial Institutions Solutions at the British Business Bank, said the extended facility would help strengthen access to finance for smaller businesses across the UK.

Michael Strevens, Managing Director, Structured Financial Institutions Solutions at the British Business Bank, said the extended facility would help strengthen access to finance for smaller businesses across the UK.

“This partnership will support more businesses to invest, grow and build resilience, ensuring smaller firms have access to the finance they need to drive productivity and contribute to a thriving local economy.”

Mark Nelson, Co-Founder and Director of Compass Business Finance, said the increased facility would give Compass greater capacity to support SMEs as the business continues to grow.

“This significant facility will increase our ability to support SMEs across the UK, enabling more businesses to access the funding they need to invest, grow and achieve their ambitions. It is an important step in supporting our continued growth while maintaining the service and flexibility our customers value.”

The latest funding agreement comes as businesses continue to face pressure to invest in equipment, technology and capacity while managing the wider costs associated with growth. For SMEs seeking finance for capital investment, the increased facility gives Compass greater capacity to support those requirements and help businesses access the funding needed to invest in their future.