Praetura secures £200m to boost SME lending
Manchester-based business lender Praetura Commercial Finance, and sister company Zodeq, have secured a £200m asset-based lending securitisation facility to boost support for small and medium-sized businesses (SMEs) across the UK.
The Barclays facility will help Praetura meet rising demand for alternative lending, with the business expecting to support more than 1,000 additional SMEs each year.
Research by Praetura recently found that almost three-fifths (59 per cent) of UK businesses reported access to capital has decreased in the last five years, with 43 per cent reporting that it is one of the biggest challenges they face.
Read more: Alternative lenders and private debt funds fill SME funding gap
In addition, figures from the British Business Bank’s Small Business Finance Markets Report, found more than a third (36 per cent) of small business loan applications were unsuccessful in 2022.
The funding makes Praetura the only specialist finance company in the UK to have two separate securitisation facilities in place for both sales finance and asset finance from two major institutional banks, following its asset finance securitisation facility of £160m from NatWest.
The news comes off the back of sustained growth for the Praetura Lending Division, with the group trebling its loan to £400m over the last three years.
To meet the rising demand for SME finance, from asset refinancing to invoice discounting, Praetura Lending has also expanded its team, employing more than 150 people across offices in Manchester, Wilmslow, Cheshire, Blackburn and Milton Keynes.
Read more: SMEs seek larger loans as banks reduce lending
“By working with forward thinking institutions, such as Barclays, we are able bring down the barriers to capital for thousands of UK businesses,” Praetura Lending Division chief executive Peadar O’Reilly (pictured) said.
“Delivering this facility was a real collaboration between our treasury team, management and advisors Stuart Mogg and Jenna Picken. It would also not have been possible without the functionality and reporting capability of our proprietary technology platform Praeview.”
Barclays European head of corporate and sustainable securitisation Gordon Beck said: “We are pleased to support Praetura with this sales finance securitisation facility which emphasises Barclays commitment to supporting thriving SME businesses in our UK home market.”
The Praetura lending division, which was founded in 2013, comprises Praetura Asset Finance, Praetura Commercial Finance, Kingsway Finance and Zodeq.
Read more: SMEs relying on savings rather than new loans
