9:17 am, April 14, 2025
LE Capital, one of the UK’s largest stock funders, has secured an up to £100m funding facility, provided by Paragon Bank, and supported by the British Business Bank’s ENABLE Guarantee programme.
The announcement allows the firm to significantly increase its support for dealerships across the UK and offer competitive rates to businesses selling electric vehicles.
Access to stock finance for independent and franchise car dealerships has been challenging through 2024 and early 2025 as several larger funders have exited the market.
However, the ENABLE Guarantee programme will allow LE Capital to double its dealership network and offer larger financing solutions to both current and new customers, helping businesses to navigate a volatile economic landscape. It will also support the company to offer competitive rates to businesses selling electric vehicles.
The British Business Bank, established to provide better access to finance for small and medium-sized businesses, is playing a key role in addressing liquidity concerns in the motor market.
Its ENABLE Guarantee programme has been specifically designed to encourage additional lending into sectors across the UK by providing guarantees to allow non-bank lenders, as well as UK banks, UK branches of foreign banks, asset and asset-based finance providers to expand portfolios and enhance product offerings.
George Stancliffe, CEO of LE Capital (pictured), said: ‘Stock funding supports thousands of independent and franchise dealerships, enabling them to expand their operations and increase revenues.
‘This new facility, supported by the British Business Bank, allows us to double our funding capacity and provide larger facilities to dealerships that need them.
‘Our ability to offer more competitive pricing will help both new and existing customers access the finance they require to thrive in a competitive market.’
Michael Strevens, managing director, structured FI solutions at British Business Bank, added: ‘This has been a transaction of firsts on multiple fronts.
‘This is the first time we have used pricing to promote electric and hybrid vehicles, the first time we have used the guarantee for specialty finance, and the first time we have worked with LE Capital.
‘We look forward to seeing this finance help independent car dealerships expand and grow, whilst also encouraging their transition to net zero.
‘We are also delighted that our guarantees are now proven to support specialty finance providers, such as Paragon, provide significantly larger funding lines.
‘These larger funding lines will provide a consistent and stable foundation to accelerate their smaller business lending clients’ growth.’
You can apply for stock funding with LE Capital here.
