Rural Asset Finance Secures New Financing Facility Backed by ENABLE Guarantees Program
Rural Asset Finance Secures a £120m Financing Agreement With NatWest and BCI Capital, Endorsed by the British Business Bank for Financing Purposes
The British Business Bank's ENABLE Guarantees Programme has provided a new financing facility to Rural Asset Finance, a specialist direct lender to British farmers, to help sustainable rural businesses in the UK.
The transaction builds on the work done by the British Business Bank through the ENABLE Guarantees programme to support the provision of funding to businesses in the agricultural sector.
Matthew Whittle, Relationship Director at NatWest Bank, expressed his pleasure in supporting Rural Asset Finance in securing the new facility, backed by the ENABLE Guarantees program.
Under an ENABLE Guarantee, the UK Government takes on a portion of the risk in a transaction supporting debt finance to smaller businesses, in return for a fee. This arrangement aims to increase lending to smaller businesses.
The ENABLE Guarantees Programme, operated by the British Business Bank, is designed to increase the availability of finance to Small and Medium-sized Enterprises (SMEs) in the UK. The programme supports SMEs by increasing lending capacity, financing growth and transition, and supporting diverse industries, including those in rural areas involved in agriculture.
While the ENABLE Guarantees Program does not specifically target the agricultural sector, rural businesses involved in agriculture could access these funding opportunities if they meet the eligibility criteria of participating lenders.
The anticipated portfolio size for this new facility is up to c.£120m for smaller rural businesses across the agricultural sector in the UK. The funding is provided by NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of the funding provided by NatWest.
Rural Asset Finance offers financing options that can be flexible, combining equipment finance and business loan options. The new facility aligns with Rural Asset Finance's focus on sustainability and includes a margin adjustment if sustainability performance targets are met.
Both Rural Asset Finance and NatWest Bank look forward to working together to augment sustainable financing initiatives for agricultural and rural businesses. BCI Capital is also proud to be part of this partnership, helping to drive forward lending aligned with sustainability and rural economic development.
Rural Asset Finance aims to support farmers driving efficient high-tech food production and those diversifying into alternative revenue streams with this new financing facility. Matthew Smart, Managing Director of Rural Asset Finance, states that the enhanced facility with the British Business Bank's ENABLE Guarantees program offers a competitive credit margin.
For businesses seeking more tailored support, the Growth Guarantee Scheme, also provided by the British Business Bank, aims to improve loan terms for eligible businesses. This might be beneficial for agricultural SMEs if they can demonstrate a viable business proposition and meet the scheme's criteria.
[1] Source: British Business Bank [2] Source: Rural Asset Finance [3] Source: British Business Bank - Growth Guarantee Scheme
- Rural Asset Finance, a UK-based direct lender, has received a new financing facility from NatWest Bank and BCI Capital, partially guaranteed by the ENABLE Guarantees Programme operated by the British Business Bank, to support sustainable rural businesses within the agriculture industry.
- The ENABLE Guarantees Programme, designed to increase finance availability for Small and Medium-sized Enterprises (SMEs) in the UK, aims to encourage lending to rural businesses by taking on a portion of the risk in transactions, and this arrangement has potential benefits for businesses within the agricultural sector.
- Although the ENABLE Guarantees Program does not target agriculture specifically, agricultural SMEs can access the financing opportunities if they meet the participating lenders' eligibility criteria, and may further benefit from the Growth Guarantee Scheme offered by the British Business Bank, which aims to improve loan terms for eligible businesses demonstrating a viable business proposition.
