The three-year funding commitment is structured as a block discounting facility and is part of the Bank’s Investment Programme, which has now committed a total of £110m to asset finance companies. The programme forms a key part of the Bank’s efforts to increase the diversity and supply of finance for small businesses.
The facility will help Blackburn-based Haydock grow its asset finance division, providing hire-purchase, leasing and refinance for business assets to smaller businesses wanting to invest and grow.Haydock specialises in financing hard assets, including buses, coaches and mini-buses, heavy and light commercial vehicles, industrial plant and machinery as well as other asset types. It has over £85 million of gross receivables and over 2,000 small business customers from across the UK.
Peter Wilson, CEO of British Business Bank Investments Limited, said: “Asset finance is crucial for small businesses looking to invest and grow. This facility is fully in line with our aim to increase the diversity and supply of finance for small businesses. Haydock has a proven track record and we are confident that this facility will grow its asset finance division, helping businesses across the UK to secure the assets they need to grow.”Steve Worrall, managing director of Haydock Finance Limited, said: “As an independent company celebrating our 35th anniversary year, the additional £25m of funding from the British Business Bank will enable Haydock to continue to grow our asset finance portfolio, with particular focus on assisting SMEs with business critical assets. We value the Bank’s flexible approach in embracing our business model and aspirations, and providing an advantageous platform for our Blackburn-based team of 38 to achieve our strategic plans and objectives.” Leasing finance and asset finance are increasingly important sources of finance for small and medium-sized enterprises. The British Business Bank’s Small Business Finance Markets Report 2015/16, published in February this year, found that asset finance is a widely used and growing form of external finance for smaller businesses seeking to invest in their business.
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