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UK’s ThinCats Secures £700M Funding Facility Utilizing British Business Bank’s ENABLE Guarantee Program

Alternative lender ThinCats has secured a new warehouse facility with Citi and Barclays Bank, backed by a guarantee from the British Business Bank’s ENABLE Guarantee program. The facility will support lending of up to £696m to mid-sized smaller businesses in the UK, making it one of the largest funding lines for a non-bank lender. Citi and Barclays will provide senior funding, ThinCats will provide junior funding using its own capital, and a UK credit fund will also contribute a small portion of the junior funding. This is ThinCats’ second transaction supported by the ENABLE Guarantee program. The program aims to incentivize lenders to increase their lending to smaller businesses by reducing the required capital or junior funding. Under the guarantee, the UK Government takes on a portion of the risk in exchange for a fee. Ravi Anand, Managing Director of ThinCats, stated that despite challenging market conditions, there is strong demand from mid-sized businesses for funding. He added that the ENABLE Guarantee program allows alternative lenders like ThinCats to provide bespoke lending to support UK businesses on a large scale. Reinald de Monchy, Managing Director of Guarantee and Wholesale Solutions at the British Business Bank, commented on the importance of supporting mid-sized SMEs, stating that they are a critical contributor to economic growth.

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