Propel Finance Secures £1.5 Billion to Supercharge UK SME Lending

Propel Finance, a leading UK asset-finance provider, has secured a landmark £1.5 billion funding facility designed to accelerate lending to small and medium-sized enterprises (SMEs) across Britain. The company has already supported more than 50,000 SMEs with over £1 billion in lending over the past three years. The new funding will bolster Propel's capacity to finance assets such as equipment, vehicles, and green technology across manufacturing, construction, transport, technology, and telecom sectors. Major partners include Barclays, Bank of America, Citigroup, and the British Business Bank (via the ENABLE funding program).

Key Points

• £1.5B in New Capital - A consortium of institutional lenders has provided funding through forward flow, wholesale lines, and a mezzanine facility. This enables Propel to double its lending capacity over the next three years.

• Diverse Funding Sources

  • Barclays: forward flow funding facility

  • Bank of America: wholesale funding support

  • Citigroup & British Business Bank: ENABLE funding program

  • Global mezzanine facility via a major alternative investment firm

• Track Record of Growth - In three years, Propel has facilitated more than £1 billion in loans to over 50,000 SMEs, earning titles like “Fastest Sustained Growth” from industry ranking groups.

• Strategic Partnerships - Barclays, Citi, and the British Business Bank are backing Propel’s financing capabilities. This reflects strong institutional support and aligns with the UK government's objectives to enhance SME access to capital.

Final Thoughts

This £1.5 billion funding infusion is a strategic inflection point for Propel. It strengthens the firm’s ability to meet growing demand, unlock green and productivity-enhancing investments, and scale asset-backed solutions across key industries. This partnership also highlights a broader trend: asset finance convergence, with asset lenders building durable, institutional-grade capital structures.

What to Watch

• Deployment pace: How rapidly Propel turns these funds into loans.

• Securitization rollout: Whether Propel will leverage private securitizations, as seen in previous deals.

• Funding diversification: Potential access to bond markets or other capital structures.

• Regulatory implications: As asset finance scales, how FCA oversight evolves.