Commercial Finance Specialists

The Government has invited proposals from prospective fund managers to manage a £1 billion investment through the Business Finance Partnership (BFP).

A statement from the Treasury has described the Government’s intentions to invest up to £1 billion in commercial finance alongside private sector investors through managed funds that lend directly to mid-sized businesses in the UK.

The British Finance Partnership will facilitate the flow of credit to UK businesses through diversifying the sources of finance available. Small and medium enterprises are reasonably optimistic in terms of turnover this year, but are less optimistic about profitability and growth potential.

This corporate finance fund forms part of a package of up to £21 billion of stimulatory measures announced during the Autumn Statement to support SMEs that do not have ready access to capital markets.

Chancellor George Osborne spoke of the importance of creating jobs in the current financial climate:

"It’s crucial that mid-sized businesses get the loans they need to grow and create jobs, especially when the uncertainty in the global economy is making credit conditions harder.

"The Business Finance Partnership will help these businesses by building new ways for them to get loans other than from their banks."

It is expected that there will be further opportunities for fund managers to bid for subsequent injections as and when they are announced.